and companies but i am perfectly aware that administrative methods can be used to introduce the need for innovation in state owned companies but that scheme won't work in private firms that demand for innovation emerges when the market becomes competitive competition forces companies to improve their work create products with a higher added value increased labor productivity cut expenses etc that's what innovation is needed for we have technological innovation doesn't influence eventual profit and loss because they depend on a monopoly in the market rather than official cooperation it's obvious that such a company will have no need for innovation that's why i believe that improving the competitiveness of russian business with certainly contribute to the innovative development of our economy thank you very much for this interview.

the official. video. and. broadcasting live from our studios in central moscow this is our t.v. certainly glad to have you with us. becomes the first

russian leader to visit sparking anger in japan. to the protest saying the president does not need permission to travel across the country. baghdad's christian community takes to the streets over the iraqi security forces of the deadly. the dead many now question if the police are capable of maintaining security in the country. scientists. power source. say could be a safe substitute for. i'll be back with more news in around thirty minutes but first it's spotlight with he speaks to. the world's largest natural gas producer and exporter with winter just ahead they discuss the state and security of gas shipping that's coming up in just

a minute. oh a cell phones would be useless without this mineral. tiny pieces needed to make them work. but every piece of culture and is extracted at a cost to life. hello again and welcome to spotlight. on i.t.v. i'm going to be my guest in the studio is syria gate. this one of the world's

biggest producer and exporter. will be heating hall from the european continent and with cold season had talks about gas prices. is something going to happen maybe something bad something we better be prepared for to share the news on this subject here is the official spokesman of a. new presidential cautiously craned the gas wars with russia that occurred across the continent over the country has reached an agreement on discounts for natural gas bookkeeping returned russia got a long term lease on the sebastopol naval base but ukraine is still not happy with the gas price and prime minister putin says russia is ready to discuss another discount flukey of the most of the several european countries agreed with discount phone cord natural gas it seems a good deal for the europeans who progress in london a pipeline from central asia is an attorney to russian gas but some experts suggest

the book was just words and no alternative to moscow's north stream and south stream pipeline. thank you for coming to our program as i said the winter is coming the words winter and ukraine somehow connected in the minds of journalists could you tell us if agreements have been reached with ukraine. the price would be lowered he was talking about two hundred thirty two hundred thirty five dollars. four thousand cubic meters from gazprom we have the number two hundred fifty dollars four thousand cubic meters how are these negotiations with ukraine going to go to. do we have a contract based on which we calculate the price which is adjusted every quarter depending on how prices change so the different numbers that you hear at different

times contradict each other they just reflect the current situation or. there have not been any new agreements on gas prices we were just discussing what price we will get you based on their formula and then we have in the contract. conduct and you just clarify something for me this is all happening under the agreement that put into machine cosigned right there well it is more appropriate to see in it the deal was between gas cronan naftogaz it is the same contracts right because i give wants to revise these agreements we've got a ready to revise it was. we have heard of this from our ukrainian colleagues of course we can consider different proposals and suggestions but it is the producer we are satisfied with these contracts. which so you are ready to revise the contract see if it's because some of the new ones will benefit you even more there or could there be other conditions or if they propose something

that we would find interesting also not today but maybe sometime in the future well you've already mentioned it several times seen out if russians the russian people think that good relations between the two countries should influence gas prices i mean in relations between moscow and kiev spotlights. that. hi there well the recent change of course in the relations between russia and ukraine has triggered an interest of many experts regarding gas prices today i'll try to find out if this improving relations of the two countries. the good relations between russia and other countries should influence gas prices. i think everything should be fair i think ukraine should pay the same price for gas as any other of neighboring countries why should we lower the price for them if we do that other countries would want their prices lower too. i think we should because we

need to have as many allies as we possibly can it would be even better if all these allies could surround us that we would have a more peaceful life but it is anything else would come with a price. yes i think we should lower the prices because they are our neighbors would you try to have good relations with your neighbors. why should we on one hand on the other hand in order to support good political interests we have to pay the price just you know we shouldn't lower the price because i think that everything should be based on market conditions good relations between states should be measured by some of the criteria the economic relations. yes we should in order to have good relations of course we should because everybody would gain from it so who would actually benefit the most from the creation of russia ukraine. russia ukraine even europe. the.

who's interested in creating this consortium alluded to crane would be willing to make some concessions for the sake of this consortium. think that all sides will benefit from this as far a steep interests are concerned. because on the gas business side of things. there is a very tight technological connection. between nafta and gas products and the so that it was created as one system. therefore we control the system from one place you know it will be able to save more we will be able to be flexible and so on and so forth. that you will be shown how would your a benefit from this consortium. on interrupted delivery. point different

entities controls supply and transit given that ukraine is responsible for transit to russian gas prone are responsible for supply should to move it if we have one control sensor yes and the whole system will be more reliable obviously which europe will naturally benefit from these gasper all is convinced that this consortium is beneficial not only to you but also to the ukrainians europe c. of the produces consumers transit countries absolutely everyone put you in why you the ones who have to convince everybody and they concessions and lower prices but you know it doesn't benefit you more than anybody else in my right that is anywhere near doing that i don't think so. your little one problems with transit to europe took place. they mostly complained to us because they had signed contracts with us

not somebody else. so when looking at such initiative and european sask if this would help us carry out our contractual obligations. as far as ukraine is concerned. this issue has been on top of the chanter for a long time now. so for ukraine this is a very sensitive issue. from the. politics. and the main reason for doubts about this consortium. we have just heard people in the streets of moscow think. correspondent ask them if they thought russia should pay for this friendship in other words should get gas prices to friends and allies like ukraine. everybody knows things that.

i was there not too long ago during. the russians themselves. i don't know what you think but to me didn't look like it. was different from the situation in ukraine. thought it was a war because you wouldn't the prices in two thousand and eleven the current agreement expires new contracts will have to be do you think it is possible that there will be another the. prices will be raised. i'm all right yes the seemingly different question so all trials they're open necked to what can we expect from the situation bellerose. first of all the stuff about whether or not gas prom should be a full friendship with our allies if we look at these two examples in ukraine and belarus we will see that certain concessions that can made for them didn't truly affect their business and the discount that the economy got this year is to

basically a lower x. sports tax also this money goes to the student budget and they didn't get a lot of polish and package deals which involve stationing the black sea fleet and it's a vast of all are something that the. wealth of the state is really to pay for that you don't gasp wrong as a business was not affected by that. so you know the same with belarus about it some time ago we agreed on a transitional period. for us as the producer this was a chance to prevail period the consumer for higher prices it also i'm no expert tax on gas deliveries to bill roofs which we initially did and i showed it to the sugar the green mint with ukraine expires scene of twenty nineteen issue so we're fine here i hope we don't need to war. as far as bill russo is concerned though i just

think you're right on the contract expires next year it will have to negotiate the terms for a new agreement. at this point it is hard to say what is going to happen with these negotiations but we think that over time we have reached a mutually acceptable level of god peroration. and based on this that he and we hope you to sign a new contract. and you and i just said no to sky. you don't expect serious complications the so-called gas war was. was a bloody scene when you hope to signing you usually beneficial agreement a look at the lead in the movie go right well you'll know the expression of hope for the best prepare for the worst how to shop all right another question about belarus. these negotiations affect the consumer not but the b.b.c.

heating it want consumers in europe. it is a difficult question. you know any negotiations our objective is to make sure that they don't hurt anyone you know but if we're concerned about the earth and simmers consumers in countries where we deliver gas to the consumers in transit countries and of course every time we do everything we can to make sure it doesn't happen in your position there are no problems but of course there are exceptions machine says on the gas prospects that spotlight will be back shortly after we take a break so stay with us we'll continue this interview in less than human. the. passenger liner sailing in the black sea.

august thirty first nineteen eighty six. twenty three twenty. four kilometers off shore. crashes into another vessel. four hundred twenty three people died. russian titanic. more news today. if these are the images. from the streets of canada. china. today.

welcome back to spotlight i'm albert nobbs and i just want to remind you that my guest here in the studio today is. the spokesman for russian gas problem who is the gas giant here in this country and this one could be on the mystical prion of one of the journalists favorite topics to discuss with a guest promised at the u.n. is south stream is the majority's opinion that south stream is the bucco pipelines rival. gazprom has recently started work on the project and is currently negotiating with the french. and the german. you negotiate ing with any new partners in this project and he's gazprom ready to reduce its share for the sake of new partners. but. if i were in c.

we have activated our word since we have always been actively working on the project but the fact that as you say people talk a lot about sauce three now. because among other reasons. there is nothing to say bulk nordstrom's ship in nature the pipeline construction is under way. you may remember that some time ago there used to be a lot of criticism and doubts about it budging it was known for some reason but i actually enjoy lists. with journalists completely forgot about it when everything is fine the meters they forget about it so what's wrong with the south stream since all of them out there. south through rivalry we have many times that there is no reason for such a rivalry with the. south stream is a two. delivering our guests who are

a consumers national can other words transit they versification into and the two for delivery it's diversification. they do or is in a pipeline he's and was created as a two for its source they will receive for the european consumers in this respect we do not compute it's all well read enough to be assured that our project will be implemented according to schedule and game twenty fifteen the first gas delivery will be performed i forgot or i mean right now we are at this teacher when they visit billet the study for the c. part of the project is written which us so next year we expect it considering all the costs abilities in all the options we have ships and you know that recently mania became interested in this project to you which was not part of this project prior to that and india when you say interested do you mean that you have started

negotiations already yes a direct contacts are right there just saying direct contacts that at the moment they are trying to give their proposals of how they will jump on this train which is running fast already past soonest possible and in the first part of the next year we are to make the final decision on this pipeline through. which any final name self the intermediate geographic places over the route. of the great and clarifying question is gazprom ready to decrease its share in the project to attract new participants are you talking about the sea part of the project and i don't know because regarding the lamport in every country we create a joint venture and sharing it is a fifty fifty plus one share so obviously you asked about the sea port issue of the moscow it's an issue to be negotiated with are telling in french partners and any new. partners if they merge. you don't comment much on the

pipeline however the majority of russian commentators and the next person analysts are more politicized than usual because you are more about business if they tend to criticize nabucco saying that it has little chances to get implemented it has little grounds to exist and there is nothing much to sell and cetera. as a representative of russian and big business. can you really say that the pipeline is not a rival to gazprom or do you have to consider it as the business that can steal a bit from your profits. should i repeat once again it's a two for resource there versification. we're building a soft stream to increase the reliability omar deliveries and reduce transfer to

risks do you have that's why these are two different tasks that cannot contradict each other. for their criticism of the book i don't think i have just become that skeptical sure enough skeptics and supporters of this project without me. but i think that for example the fact that their demand lucas financing. was claimed to be media soley by state banks shows what the ratio between economic and non economic interests is economic. when you can i mean in this project. now about just a bit we often hear that. council of ministers recently gave consent to signing a new gas agreement with russia. to it but if i understood it correctly the owner of that part of the pipe. company.

function. will be the real. maintaining this part of the pipeline. in your opinion. is not true. and the situation is as follows you probably remember that the mall europe gas pipeline in the polish part of it was built on to deprogram off a delivery route diversification. and about a new key do with initial it was only one corridor that went through ukraine so in

addition to that it would have a pipeline period to the polish one and sometime later would lose three most build directly to turkey just up all the right now the polish part of the mall europe pipeline belongs to the joint venture a europe whole gas and trying to ensure of gasper on the polish national gas company that it will be and you're putting to the new requirements of the european commission. at least guess transporting system is to be operated by an independent company and at the moment gas system which is a hundred percent polish state on company use a point two billion dependent operator we as europol gas shareholders are interested that the company receives enough revenue to be able to pay for credits. and we wanted to provide us with reasonable tariffs for gas transit through polish

territory we think that the agreements which we have signed but i want to. enable us to do so it was italy but with the intergovernmental agreement proving the entire package the cream and so we hope that it will be signed soon and poland itself is interested more than anybody and it is on a mission as a community based gas deficit and if you're in the winter which is here unpleasant . it's a list system of agreements with poland is it take up a system of only take or pay that with the leader yes of course i would. gazprom negotiating abolishment told the paper principal with other clients about me they could be even you need to know what by no means so you're satisfied with it right we do our best to demonstrate to our clients that it's good for them as well because if you don't consider just the current situation if you look at shared

floor. you will see that as a long term condition it's good for everybody because our clients know that they will always have gas they will have a secure source of energy. to the head of gas alexei miller says that the domestic russian market is becoming the development priority for the company here i have several questions. first of all why is it a priority gas is much cheaper at the domestic market and what looks like gas problem doesn't want to earn more money and secondly it would is it the reason for europe to. take or pig and then they have nothing to worry about now as for the domestic market its volume is twice as much as so rocks are towards the end considering their decision to shift to equally profitable domestic crisis

by twenty fourteen so will have to markets like europe within our countries and we won't have to build expensive pipelines. to provide gas market which will be asked profitable because the european market and. you know considering that there will be no x. import tax and that we won't be to delivery of gas to remote regions for russian consumers gas will be cheaper and the wounds lose their competitive advantage based on the fact that russia. he's reaching natural gas but i share that on an annual get it. to russia is a region guess where does this paradox come from as i know in russia there is still no b.s. supply and that even in moscow region there are many villages without a guest supply is their name to provide a guest supply to every settlement in russia on the right to choose here your first

let you say something about cheap gas considering that it's several times cheaper than any other standard she source boil or your cool or anything else due to the fact that it's more convenient to use gas in case we had to lower g.s.t. all consumers would have caused when it's going to negative profit and would have exhausted gas resources that's the first thing and now just as the price is screwed we are sure that demand will be reasonable and that we'll be able to deliver as much your client says they will need and then we should secondly in the country's huge. from the economic viewpoint it's not always profitable seeing stall if your pipe to separate the village but there are other options we could provide autonomy as gas supply with. a chain or anything over here for cuts or all options but of course there won't be one hundred percent gas supply network it's not profitable

and. it would have to think. thank you very much for being with us and just a reminder that my guest in the studio today said again. the spokesman for the russian gas giant and that's it for now from all of us here if he wants have your say on this show drop ally spotlight will be back with more first and comment on what's going on in that russia until then stay on and take.