Sochi, August 23, ArmenPress - "I would like to express my satisfaction with the spirit and atmosphere of negotiations which have marked all our meetings with Armenian leadership. Sincerity and partnership, in its deep meaning, are typical of Armenian-Russian relations and for that I would like to thank my counterpart, Robert Kocharian," Russian president Vladimir Putin told a news conference followed by his meeting with Armenian president Robert Kocharian.

According to him, the sides have a good chance to "fix the clocks" for all spheres of cooperation. The talks mainly related to cooperation in economic field. Russian president mentioned a number of concerning issues, particularly decline in trade turnover. V. Putin voiced his hope that the problems will be overcome in the nearest future, primarily connected with modernization in Armenal, a Russian subsidiary in Armenia, and some other problems in one of the fields which wait for their settlement soon, Russian president assured. V. Putin mentioned that he had contacted right during the talks with Russian side involved in Armenal transaction and learned that works will be over in due time. The total investment by the Russian side will make 36 mln USD.

Russian president also said that they have conferred on military cooperation, particularly within Collective Security Treaty Organization (CSTO). He informed that a decision is developed which will be presented to the discussion of State Duma. According to the decision, political military cooperation in CSTO member states should be equalized with similar transactions in Russia, i.e., all procurements should be made based on Russian standards and prices.

The sides also discussed infrastructure development cooperation prospects. According to V. Putin, there are a number of problems in this important field connected with geopolitical situation of Armenia. However, he cited a number of good prospects which Russian president voiced that will be realized.

V. Putin underscored cooperation in energy field among the economic ties. He praised the present level of cooperation in the field and voiced his hope that in the future they will be deepened.

Robert Kocharian said that the meeting in Sochi has been a good opportunity to discuss disposition in different fields. According to him, issues accumulate from time to time which wait a boost "to pass through cabinets."

President Kocharian also expressed his satisfaction with the nature of the discussed issues. He also mentioned that concerns have been raised connected with the decline in trade turnover. However, the president noted that this is not the sole indicator in bilateral ties. Russian capital has grown in Armenian businesses and is encompassing more and more new fields year by year, already today involving agriculture, processed chemistry, hotel, banking, high technology and other fields. He underscored all the transactions that are marking Armenian-Russian economic ties today.

Speaking on economic development prospects, Putin also noted the mentioned fields. "We have untied a "difficult clew" of debts and responsibilities by handing over control packages of a number of Armenian companies to Russians," president Putin mentioned.

President Kocharian said that there a number of issues with Mars factory and works are under way to increase industrial output there. In better conditions is Hrazdan Hydro Electric Power Station. It is normally operating and output may grow in relation to export possibilities.

Among other issues was military technical cooperation as well as preparation of Armenian cadres in Russian military establishments.

Responding to the question of Armenpress on the situation in South Caucasus, Russian president said that South Caucasus is in a difficult state now and "the present conflicts are the heritage of the past." He said part of the conflicts are frozen and some of them burst out with a new rigor. It is, of coarse, a concerning matter. However, Russian president voiced his hope that common sense, the clear understanding of the importance of relations among regional people will prevail over some pretensions. "By joint efforts and compromise in negotiations many accumulated questions should be resolved," he said.

According to Kocharian, conflicts affect negatively on the whole region and everything should be done so that they do not flare up. According to him, there are different conflicts at different phases of development . Conflict elements in South Ossetia are difficult to control. The situation is different in Nagorno Karabakh. There is a strict border line, military forces on both sides, there are no units or actions which are out of control, violating the regime of cease fire would result from a decision by one side to break it. According to Armenian president, the situation is different in North Ossetia. Here the sides should demonstrate political willingness so that the conflict does not develop into a war.

V. Putin added that he has conferred on Karabakh conflict resolution with president Kocharian, mentioning that they discussed alternative solutions, preservation of dialogue and resolution of the conflict. He mentioned that it is important to note that both sides try to find a solution from the situation and president of both countries have similar aspirations. According to him, the clew is difficult and compromises should be looked for. V. Putin noted that Russia will play a role of peaceful mediator, of coarse, in case of consent by the sides.

Responding to the question what are the ways to bring trade economic relations into adequacy and to what level conflicts affect economic relations, Putin indicated the example of Armenal and the present challenges which are connected with the lack of communication routs. According to him, as soon as the situation in Trans Caucasus becomes tense, transport of goods and people also become difficult. There are no communication routs between Russia and Armenia, therefore the sides go to modernization efforts which asks for additional investment capital. Although this is a positive phenomenon for Armenia, it also indicates that economic cooperation becomes more difficult when conflicts are not resolved.

Robert Kocharian said the meeting is a new boost to Armenian-Russian bilateral relations. There are a number of tasks that president Kocharian will assign to his ministers. President Putin has already contacted with the head of Russian government, minister of finance and several other ministers to settle a number of concrete issues on the spot.

The sides also decided on Russian co chair candidacy of Armenian-Russian intergovernmental committee who will be Russian minister of Transport Igor Levitin.

Robert Kocharian invited president Putin to visit Armenian at the beginning of next year which Russian president accepted with great delight.