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CROATIA WANTS TO COVER TRADE DEFICIT WITH RUSSIA WITH SERVICES

MOSCOW, Nov 27 (Hina) - Croatian Vice-Premier Slavko Linic suggested in Moscow on Tuesday that Croatia compensate for its deficit in trade with Russia by increasing its export of services, primarily in the shipbuilding industry and tourism. Linic ended his two-day working visit to Moscow today by meeting Russian Vice-Premier and Finance Minister Aleksei Kudrin. The two officials discussed the expansion of economic and trade relations and the payment of Croatia's share in Moscow's clearing debt towards the former Yugoslavia. Last year's trade between Russia and Croatia amounted to USD727 million. This year has seen an increase in trade, which is expected to exceed USD800 million. The main problem for Croatia is a high trade deficit. Linic suggested that Croatia increase its exports to the Russian market by providing services, primarily in the shipbuilding industry, to the Russian
MOSCOW, Nov 27 (Hina) - Croatian Vice-Premier Slavko Linic suggested in Moscow on Tuesday that Croatia compensate for its deficit in trade with Russia by increasing its export of services, primarily in the shipbuilding industry and tourism. Linic ended his two-day working visit to Moscow today by meeting Russian Vice-Premier and Finance Minister Aleksei Kudrin. The two officials discussed the expansion of economic and trade relations and the payment of Croatia's share in Moscow's clearing debt towards the former Yugoslavia. Last year's trade between Russia and Croatia amounted to USD727 million. This year has seen an increase in trade, which is expected to exceed USD800 million. The main problem for Croatia is a high trade deficit. Linic suggested that Croatia increase its exports to the Russian market by providing services, primarily in the shipbuilding industry, to the Russian trade fleet and attracting more Russian tourists to the Adriatic coast. Kudrin and Linic also discussed Russian investments in Croatia's power, oil and gas industries, and the Croatian official suggested that Russian companies join in the process of privatisation in Croatia, use free trade zones along the coast and on islands and open joint companies with Croatia there. With regard to the clearing debt, it has been agreed that the debt should be settled mostly with Russian goods, and Croatia would suggest the goods it wants the debt to be settled with. A major incentive to the expansion of the economic and trade cooperation should be the implementation of a protocol on the integration of the Adria Druzba oil pipeline which Linic and Russian Energy Minister Igor Jusufov signed in Moscow on Monday. Under the protocol, as of next fall Russian oil should be carried with the pipeline via Belarus, Ukraine, Slovakia and Hungary to the Croatian terminal at Omisalj, from where it would be transported with tankers to the western markets. (hina) sb rml

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