Posted to the web on: 06 September 2006
Putin promises huge new investment in SA
Wyndham Hartley
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Parliamentary Editor
CAPE TOWN — Russian President Vladimir Putin began his historic visit to SA yesterday by announcing that Russian companies were poised to invest billions of rand in the country in areas such as mineral exploration, mining and the provision of nuclear fuel.
Putin began his two-day visit, the first by a Russian Federation head of state to sub-Saharan Africa, with a meeting with President Thabo Mbeki and members of the cabinet.
This was in preparation for the signing of four key co-operation agreements between the two countries, and to lay the ground for the potential investments.
Speaking at a media conference after meeting with Mbeki, Putin said a Russian company was set to invest $1bn, and that other investments were possible in the areas of power generation and aluminium smelting, as well as for supplying nuclear fuel to satisfy SA’s needs up to 2010.
Later yesterday, Putin had discussions with diamond giant De Beers’ chairman Nicky Oppenheimer during the signing of a memorandum of understanding between De Beers and Alrosa, the South African and Russian firms that account for about 75% of the world’s diamond mining.
Mbeki used Putin’s official visit yesterday to announce that SA would take up a nonpermanent seat on the United Nations Security Council in January, and would rely on Russia for co-operation on delivering in its new role. Mbeki, addressing a press conference after his meeting with Putin, spoke of SA’s membership of the security council as a certainty and said he was “very pleased” that SA would be able to count on its relationship with Russia in discharging its responsibilities as a nonpermanent member of the council in the next two years.
Three African countries serve as nonpermanent members at a time and this will be the first time that SA has held the position.
Spokesman for the foreign affairs ministry Ronnie Mamoepa said SA’s membership of the security council had been endorsed by the African Union in July and “we are confident that when the formal elections are held in October, SA will be endorsed by the world”. Once elected to the seat, SA was expected to assume the presidency of the council in March, he said.
Mbeki, in response to a question, said that SA and Russia had co-operated on international matters in the past.
He said they had worked together in the International Atomic Energy Agency in attempting to find a diplomatic solution to the impasse over Iran and its nuclear aspirations.
He said the issue over a security council position was that SA would be in a position in which it would have to take detailed positions in resolutions before the council and the experience of Russia would be invaluable to SA making a contribution.
The intensification of co-operation would empower SA in discharging its responsibilities, he said.
Both leaders also wel-comed the initiative taken by Russian and South Afri-can business leaders for the creation of a Russia-SA Business Council.
Mbeki said business leaders from both sides had taken the lead in launching the council (today). As trade between the two countries expanded, business would need the support of the council.
With Reuters