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Concerning our possibilities on the international financial markets, the sanctions are severely harming Russia. But the biggest harm is currently caused by the decline of the prices for energy. We suffer dangerous revenue losses in our export of oil and gas, which we can partly compensate for elsewhere. But the whole thing also has a positive side: if you earn so many petrodollars - as we once did - that you can buy anything abroad, this slows down developments in your own country.
Our economy has become completely different, on the whole. The size has changed. The economy has almost doubled in size. And the quality is changing, not as fast as we would like it to, but the structure is changing. Our Armed Forces are completely different today from what they were, say 15 years ago or so. All of this, including our great history, great culture, all of this, not just what we see today, is what makes the vast majority of Russia's citizens feel proud for their country.
I have criticized it [Europe], but I repeat: we keep 40 percent of our gold and foreign currency reserves in euros, we are not interested in the collapse of the Eurozone, but I do not rule out the possibility of decisions being made that would consolidate a group of countries equal in economic development and this, in my opinion, will lead to a consolidation of the euro. But there can also be some interim decisions in order to keep the present number of members of the Eurozone unchanged.
I have already spoken to three US Presidents. They come and go, but politics stay the same at all times. Do you know why? Because of the powerful bureaucracy. When a person is elected, they may have some ideas. Then people with briefcases arrive, well dressed, wearing dark suits, just like mine, except for the red tie, since they wear black or dark blue ones. These people start explaining how things are done. And instantly, everything changes. This is what happens with every administration.
What happened in Ukraine? The coup d'état in Ukraine has led to a civil war, because, yes, let's say, many Ukrainians no longer trusted President Yanukovych. However, they should have legitimately come to the polls and voted for another head of state instead of staging a coup d'état. And after the coup d'état took place, someone supported it, someone was satisfied with it, while others were not. And those who did not like it were treated from the position of force. And that led to a civil war.
Changing things is not easy, and I say this without any irony. It is not that someone does not want to, but because it is a hard thing to do. Take Obama, a forward-thinking man, a liberal, a democrat. Did he not pledge to shut down Guantanamo before his election? But did he do it? No, he did not. And may I ask why not? Did he not want to do it? He wanted to, I am sure he did, but it did not work out. He sincerely wanted to do it, but did not succeed, since it turned out to be very complicated.
I think that both Russia and other international actors, including those who are more actively engaged in the resolution of the Ukrainian crisis (that is the Federal Republic of Germany and France, the so-called Normandy Quartet, certainly, with close involvement of the United States, and we have intensified our dialogue on this issue), we should all be committed to the full and unconditional implementation of the agreements that were achieved in Minsk. The Minsk Agreements have to be implemented.
25 million of Russian people suddenly turned out to be outside the borders of the Russian Federation. They used to live in one state; the Soviet Union has traditionally been called Russia, the Soviet Russia, and it was the great Russia. Then the Soviet Union suddenly fell apart, in fact, overnight, and it turned out that in the former Soviet Union republics there were 25 million Russians. They used to live in one country and suddenly found themselves abroad. Can you imagine how many problems came out?
Some Western politicians are already threatening us with not just sanctions, but also the prospect of increasingly serious problems on the domestic front. I would like to know what it is they have in mind exactly: action by a fifth column, this disparate bunch of 'national traitors', or are they hoping to put us in a worsening social and economic situation so as to provoke public discontent? We consider such statements irresponsible and clearly aggressive in tone, and we will respond to them accordingly.
Then there is another area of activity - economic interaction between Russia and the United States. Right now, for example, it has already been made public that we signed a large deal to privatise one of our biggest oil and gas companies, Rosneft. We know for sure that US companies, as well as Japanese ones, by the way, are keenly interested in cooperation in Russia's oil and gas sector, in joint work. This has immense significance for world energy markets and will directly affect the whole world economy.
I would like to draw attention to the fact that we have gone from pure trade [with China] in traditional goods [energy resources, such as hydrocarbons, oil and now natural gas, petrochemicals on the one hand and textiles and footwear on the other] to a whole new level of economic cooperation. For example, we are working together on space programmes. Moreover, we are developing and soon will begin the production of a heavy helicopter. We are now tracing the plan for the creation of a wide-body long-range aircraft.
We still have a great amount of work to do in social development, including resolving one of the biggest challenges we face in this area, namely, reducing the gap between high-income earners and people, citizens of our country, who are still living on very modest means indeed. But we cannot, of course, adopt the solution used 80 years ago and simply confiscate the riches of some to redistribute among others. We will use completely different means to resolve this problem, namely, we will ensure good economic growth.
Any country is hard to govern, even a very small country. It's not a question of whether the country is large or small. It's a question of how you relate to the work, to what extent you feel responsible for it. Russia is also hard to govern. Russia is at the development stage of both its political system and the creation of a market-based economy. It's a complicated process, but very interesting. Russia, actually, is not just a large country, it's a great country. I mean its traditions, and its cultural particularities.
I think that all countries of the region should join their efforts in the fight against a common threat - terrorism in general and ISIS in particular. It concerns Iran as well, it concerns Saudi Arabia (although the two countries do not get along very well, ISIS threatens both of them), it concerns Jordan, it concerns Turkey (in spite of certain problems regarding the Kurdish issue), and, in my opinion, everybody is interested in resolving the situation. Our task is to join these efforts to fight against a common enemy.
Now we characterise Russian-Chinese relations as a strategic partnership, even a special strategic partnership. We have never had such a level of trust with China before. China is our major trade and economic partner among foreign states. We implement joint multi-billion projects. We cooperate not only within the UN Security Council, which is logical, as both China and Russia are permanent members of the UN Security Council, but also within such regional organisations as the Shanghai Cooperation Organisation, BRICS, etc.
There is progress in the sense that the Prime Minister [Shinzō Abe] has proposed, outlined, as it were, directions for movement toward a peace treaty and the resolution of issues related to territorial problems. Now, what did he propose? He proposed promoting an environment of trust and cooperation. I believe it is even hard to imagine that it can be any different, that we can agree to sign the documents that we are talking about without trusting each other or without cooperation. That is simply impossible even to imagine.
Now we are talking about concluding a free trade agreement between the Eurasian Economic Council, recently established in the post-Soviet space, and China. A similar agreement was concluded a short time ago with Vietnam. Then, we will coordinate, at least we are ready to do this, the Chinese concept of the Silk Road Economic Belt with our newly-created regional organisation. So, do you understand how diverse, multi-faceted and deep Russian-Chinese ties have become over the last couple of decades? And we resolved the border issue.
Crimea has always been and remains Russian, as well as Ukrainian, Crimean-Tatar, Greek (after all, there are Greeks living there) and German - and it will be home to all of those peoples. As for state affiliation, the people living in Crimea made their choice; it should be treated with respect, and Russia cannot do otherwise. I hope that our neighbouring and distant partners will ultimately treat this the same way, since in this case, the highest criteria used to establish the truth can only be the opinion of the people themselves.
The United Nations remains the sole universal international organisation designed to maintain global peace. And in this sense it has no alternative today. It is also apparent that it should adapt to the ever-changing world, which we discuss all the time: how it should evolve and at what rate, which components should undergo qualitative changes. Of course, I will have to or rather should use this international platform to explain Russia's vision of today's international relations, as well as the future of this organisation and the global community.
Each country has its own particular features, its own traditions that find their reflection today and will find it in future. There are such traditions in Russia but it is not a question of a strong figure, although a strong figure is needed in power, it is a question of what is implied by this term. It is one thing if it is a person with dictatorial tendencies. But if it is a fair leader, who acts within the law and in the interests of a vast majority of society, who acts coherently and is guided by principles, it is a completely different matter.
You too would prefer that Russia maintained good relations with both the United Kingdom and the United States, wouldn't you? I would prefer it as well. If anybody in the U.S. or in the United Kingdom says: "I would like to establish good partnership relations with Russia", then both of us, you and me, should welcome that. So should people like me and people like you. However, we have no idea yet what would actually happen after the elections [2016]. That is why I am telling you that we will work with any President designated as such by the American public.
I remember my very first encounter with Japan. At that time, I was Deputy Mayor of St Petersburg. Out of nowhere, Japan's Consul General in St Petersburg came to my office and said Japan's Ministry of Foreign Affairs wanted to invite me to Japan. I was very surprised because I had nothing to do with Japan except being a judoka. This was an opportunity to visit Tokyo and a couple of other cities. And, you know, a capital is a capital everywhere: there is the official script and certain protocol. It is always easier to talk in the provinces, the conversation is more natural.
I believe that the Europeans, first and foremost, the Germans, will also understand me. Let me remind you that in the course of political consultations on the unification of East and West Germany... some nations that were then and are now Germany's allies did not support the idea of unification. Our nation, however, unequivocally supported the sincere, unstoppable desire of the Germans for national unity. I am confident that you have not forgotten this, and I expect that the citizens of Germany will also support the aspiration of the Russians, of historical Russia, to restore unity.
I want to say that Russia is developing along a democratic path, this is without question so. No one should have any doubts about that. The fact that, amidst political rivalry and some other domestic developments, we see things happen here that are typical of other countries, I do not see anything unusual in it. We have rallies, opposition rallies. And people here have the right to express their point of view. However, if people, while expressing their views, break the current legislation, the effective law in place, then of course, the law enforcement agencies try to restore order.
We negotiated the construction of a gas pipeline system along the bottom of the Black Sea to Bulgaria. We signed certain treaties of a technical nature, contracts for laying the gas pipeline. And then Bulgaria created such conditions that the project's implementation became impossible, which was obviously against its own national interests. The former Bulgarian leadership was, in fact, aware of that and acknowledged it. But we trusted them when we were launching that project. We sustained losses amounting to millions, several million dollars. We would not want to get into such situations.
The G20 was established as a forum to discuss, first and foremost, world economic issues. If we load it with... Of course, politics affects economic processes, this is obvious, but if we bring some squabbles, or not squabbles, rather, some matters that are really important but relate purely to world politics, we will overload the G20 agenda and instead of addressing such issues as finance, structural economic reforms, tax evasion and so forth, we will engage in endless debates concerning the Syrian crisis or some other global challenges, of which there are many, or the Middle East problem.