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CROATIA WISHES TO STRENGTHEN ECONOMIC TIES WITH RUSSIA

MOSCOW, April 15 (Hina) - A meeting of a working group of the Druzba Adria project member-countries, Croatia included, to be held in Moscow on Tuesday, will focus on the harmonisation and possible signing of a multilateral cooperation agreement and joint work in the transport of Russian oil to global markets via Croatia's Omisalj port.
MOSCOW, April 15 (Hina) - A meeting of a working group of the Druzba Adria project member-countries, Croatia included, to be held in Moscow on Tuesday, will focus on the harmonisation and possible signing of a multilateral cooperation agreement and joint work in the transport of Russian oil to global markets via Croatia's Omisalj port. #L# According to sources close to the Croatian delegation, the meeting will be attended by representatives of transport companies of member-countries, and representatives of Russian oil companies. Under the protocol on the realisation of the Druzba Adria project, signed last November by the Croatian and Russian governments, all conditions have been met for the passage of Russian oil into Omisalj via Belorussia, Ukraine, Slovakia and Hungary, and its transport via tankers further on towards the West, as well as towards Bosnia and Yugoslavia. The Druzba Adria project is very important for Croatia in the political sense, because of the connection among all the countries through which the oil will be passing, as well as in the economic sense. Its realisation can restore Croatia's pipe line JANAF's complete functionality, with its capacities being exploited significantly more than they have been. The project is significant for large Russian companies also, since it makes it possible for them to come out to the Mediterranean market. JANAF is currently expecting guarantees from the Russian side regarding the transport of oil according to agreed stages, in line with the signed protocol, which should be discussed at Tuesday's meeting. Economic subjects, including resolving Russia's clearing debt, could well be tackled on Tuesday at a meeting between Croatian and Russian presidents Stjepan Mesic and Vladimir Putin. Sides have been trying to solve Russia's clearing debt towards the countries of the former Yugoslavia for a number of years. The exact amount of Russia's dept to Croatia has not been established yet, although the Croatian government has assessed it at between 200 and 500 million US dollars. Before about two weeks Croatian media have run a story of the possibility of raw materials for the Sisak Ironworks to be purchased in compensation for the clearing debt, which was the first time the possibility of the clearing debt to be repaid by raw materials, not military equipment, has been mentioned. Total trade between Croatia and Russia in 2000 amounted a mere 730million US dollars, whereas Croatia's exports to Russia was only $60 million. The imbalance in trade was also registered in the first six months of 2001, when of the total trade amount of about $400million, as much as $350million was realised by Russia's exports to Croatia. In all talks between the two sides hitherto, it has been stressed that the current level and structure of trade do not correlate to the economic possibilities of either country. The two sides assessed that the cooperation would improve with agreements which are in the process of being signed. They also pointed out the possibility of joint investments and joint appearance on third markets. Croatia is constantly stressing that it would like to expand economic cooperation with Russia and raise trade to a billion dollars per year as soon as possible, to which the increase of Russian tourists on the Croatian coast would certainly contribute. If we are to believe the prognoses of Russia's touroperators, 60,000 Russian tourists could be visiting Croatia for vacations this year, which would make a 20 percent increase to last year. The Croatian Tourist Board opened its office in Moscow this January, which, according to Croatian tourism Minister pave Zupan Ruskovic, was proof of the will of Croatian tourism to become more engaged on the large Russian market. One of Croatia's largest investments in Russia is certainly that of oil company INA into Siberian oil fields White Nights. According to announcements by INA's management, the company is currently holding negotiations with Russian partners and other interested parties about the possibility of selling White Nights because of bureaucratic obstacles and difficulties regarding the approach towards the main pipe line artery from western Siberia to the terminal at the Black Sea. (hina) lml

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