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Annex III to BS/FM/R(2007)1

OPENING STATEMENT BY H.E. VUK DRAKOVI,

MINISTER OF FOREIGN AFFAIRS OF THE REPUBLIC OF SERBIA

Your Excellencies, Mr. Secretary General, Ladies and Gentlemen, I am greatly honoured to welcome you in Belgrade today on behalf of the Government of the Republic of Serbia and on my own behalf. The Republic of Serbia has taken the Chairmanship of the Organization of the Black Sea Economic Cooperation from the Russian Federation on 1 November 2006 and will transfer it today to the Republic of Turkey. The fact that the Serbian Chairmanship came between the chairmanships of these two Member States was a great challenge to us. Serbian Chairmanship has focused its efforts on a higher profile of the Organization. It was also aimed at strengthening the Organizations role in contemporary international relations, in cooperation with international organizations. It further made efforts to enhance and promote relations between them. In addition to BSECs cooperation with some organizations of the United Nations system, particular attention was devoted to establishing and developing cooperation with the European Union. In the light of an undeniable interest of the Organization and all its Member States to develop and promote their relations with the EU, and taking into account that Bulgaria and Rumania have become EU members during Serbian Chairmanship, we have accorded special priority to cooperation with the EU in the activities of the Organization as a whole. All other priorities identified by Serbian Chairmanship have been aimed at making a contribution to overall BSEC activities and to the achievement of our common goals, including possible areas of cooperation with the European Union. Our common efforts in combating organized crime and terrorism, sustainable energy supply, environment, transport, education and culture are, at the same time, prospective areas of cooperation with the European Union. They should also motivate appropriate bodies and institutions in the European Union to take part and make their own contribution, to the mutual benefit. The Memorandum on the Black Sea Ring Highway and the Memorandum of Understanding on the Motorways of the Sea in the Black Sea Region to be signed today, as well as the Memorandum of Understanding on facilitation of carriage of goods by road - which was acceded to today by Russia and Serbia - are a concrete and very important result of our cooperation and the past activities. They provide a real potential for cooperation not only with the European Union but also with other interested partners.

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The fight against organized crime and terrorism is among the imperatives of cooperation among all countries. Cooperation in this field may bring about multiple benefits. The more so as organized crime knows not and does not recognize country borders. Our activities should not only result in the creation of a safety and security zone, but also in a zone promoting, beyond its limits, increased security. This requires also the establishment and development of relations with the relevant bodies of the European Union. The development of all communications, especially transport and traffic infrastructure, may be beneficial to all of us. In this way, preconditions are to be established for the implementation of other BSEC priorities. This is, at the same time, the way to encourage contacts among the populations, improve potentials for tourism, facilitate trade and encourage economic and industrial cooperation. In view of the geographic position of Serbia, I would like to point in particular to the importance and role of the Danube, as our natural link with the Black Sea. The latter represents the transport, trade and development motorway of the region. The River Danube is also a strategic link between our region and the EU, having the potential to stimulate the development of transport, trade, tourism and services. It also has the potential to attract investors to invest in these and other sectors of the economy. Therefore, it is necessary to take advantage of all the potential of the Danube. In this context, I recall that the Republic of Serbia yesterday hosted the Third Ministerial Conference of the Danube Cooperation Process. One of the principal objectives of that Process is to share experiences and explore further possibilities for utilizing the potential of this major European traffic artery. Ladies and Gentlemen, Friends, In summing up the results of the six-month Serbian Chairmanship, I would like in particular to say that it initiated the holding of the first ever, formal meeting of representatives from the diplomatic academies or institutes of our countries. This Meeting adopted a Memorandum of Understanding that we are going to sign today and thus give an impetus to stronger relations between diplomatic academies. That will further contribute to a better understanding between junior diplomats, who will be actors in the multilateral processes in our region in the future. This year marks the fifteenth anniversary of our Organization, so the expansion of our cooperation to include the academic area, as well, has proven its institutional maturity. I believe that Serbian Chairmanship over the past period has helped to strengthen the Organization and its overall cooperation. I also believe that its priorities and activities will serve as a basis for further cooperation. At the end of its first turn as BSEC Chairman, Serbia remains even more committed to BSEC objectives and goals and stands ready to made additional efforts towards the Organizations further strengthening. Before concluding my statement, in transferring the Chairmanship to my dear colleague, Minister Abdullah Gl of Turkey, I wish him successful stewardship of our Organization and I call on all Member States to contribute jointly to the further development and promotion of BSEC cooperation. Let me also express the expectation that the forthcoming BSEC Summit to be held on the occasion of the 15th anniversary of our Organization in Istanbul, on 25 June 2007, will be an important milestone event providing further guidance for the future. Thank you.

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Annex V to BS/FM/R(2007)1

STATEMENT BY H.E. EDITH HARXHI,

DEPUTY MINISTER OF FOREIGN AFFAIRS OF THE REPUBLIC OF ALBANIA

Honourable Mr. Draskovic, Please do allow me, first of all, to extend my sincere thanks and gratitude for the hospitality given here in Belgrade and for the excellent organization of the 16th Meeting of the Council of the Ministers of Foreign Affairs of the Black Sea Economic Organization, here in Serbia. At the same time, I avail myself of this opportunity to also convey the most positive assessments of our side, for the serious and professional engagement during the conduct of the Chairmanship of our Organization for this six month period. Honourable Colleagues, Ladies and Gentlemen, Distinguished Participants, The strengthening of regional cooperation and strong and friendly ties between neighbours in the region remain of special significance for Albania, and a priority of its foreign policy. Relying on this philosophy, as a co-founder of the Organization, Albania is convinced on the importance of cooperation of our countries, in the Black Sea Economic Cooperation context, for the sake of peace and stability, the process of integration into Euro-Atlantic structures and for the promotion of projects of common interest in priority development fields. We notice with delight that during the six - month period of the successful Serbian Chairmanship, cooperation among our countries has eye - witnessed new positive developments. The period of the Serbian Chairmanship is assessed in terms of efforts towards concrete results and such results have focused not only on the tight schedule of bilateral and multilateral agreements between our countries, but also by including Black Sea Economic Cooperation every day and more in the European Union agenda. The meeting of the 23 of March in Istanbul between BSEC EU Troika can be easily singled out, ad has served to the exchange of ideas, mutual understanding and exploration of paths, conducive to the enforcement of these relations. In our assessment, the documents prepared by both sides represent a solid basis for the works intensification. While considering the Communiqu of the EU Commission of 11 April 2007: Black Sea Synergy - A new Cooperation Initiative, as a document setting out the strategic directions of the BSEC EU interaction, we do express our deep belief that it represents a basis for discussions and approximation of our working plans, namely the materialization of this cooperation in the future.

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As the Euro - Atlantic integration is a strategic priority for Albania, we have unreservedly supported and will also continue to support the steps made for the establishment and intensification of formal relations between BSEC and EU. The enhancement of the role of the countries with observer status (particularly those being EU Member States) would also serve to the consolidation of the BSEC; this role would extend from an almost current symbolical presence, to a more active involvement, particularly in the framework of the Development Fund Projects which are so much needed for our countries and the enhancement of the cooperation in the entire region. Thus, the Energy Sector remains an important field for cooperation. Our countries have genuine potentials and can work together, specifically on implementing projects on energy interconnections and joint master-plans, on electricity, hydro, gas, crude oil designed to increase and diversify exchanges and a better usage of our resources. The promotion of infrastructural transport networks does also remain an indispensable priority for all our states. Our country is ready to take part at all BSEC priority transport projects, primarily at: Coordinated Development of the Black Sea Ring Highway and Development of the Motorways of the Sea at the BSEC Region. In this context, Corridor VIII has special significance for Albania, since by binding the Adriatic with the Black Sea, it would bring closer our countries; cultures, and peoples, giving an impetus to the economic and tourist development of our region as well. We are also very thankful on this to the European Union who has taken it at hand and is trying to promote the corridor as a channel of communication that will link EU and the Black Sea region We hold that the BSEC organizational and structural consolidation remains another challenge and priority for each member state. The need for reflections and modifications in the BSEC working style and methods will also continue to remain at the epicentre of our Organizations work in the future. Naturally, this necessity stems from the very development of our Organization, the intensification and diversification of our cooperation in its framework. Albania is willing to play its active role, by supporting, without any reservation whatsoever, the initiatives aimed at finding ways and means to boost the BSEC efficiency. Mr. Chairman, Albania is a country that promotes and respects stability and peace in the region. The Albanian foreign policy is based on strong pillars such as regional cooperation, economic interaction and free trade zones, respect for human rights, respect for the free will of people to determine their future, respect for the rights of all people to live in peace and harmony with each other, regardless of their ethnicity, language or religious belief, respect for sovereignty and the borders of other countries. There are exactly these pillars that make Albania support the efforts of the international community to find a peaceful and viable solution for Kosovos Final Status, as well as President Ahtisaaris plan. Albania recognizes that only Kosovos independence, as an unprecedented and unique case in the history would produce further peace and stability in the region as well as will

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give an extra boost to fruitful cooperation and strengthening of neighbourly ties among our countries. In conclusion, I would like to extend my thanks for the work of Black Sea Economic Cooperation related bodies, as the Parliamentary Assembly (PABSEC), Business Council, The Black Sea Bank for Trade and Development (BSTDB) and the International Centre of Black Sea Studies (ICBSS). The work of the Permanent Secretariat (PERMIS) during this period, under the guidance of its Secretary General, Mr. Leonidas Chrysanthopoulos has been quite dynamic and efficient, contributing to the increase of the Organizations visibility and better highlighting our common achievements. Let me express my deepest belief that, while relying on the principles enshrined in the Organization s Charter and on the eve of the great festivities, on the occasion of the 15th Anniversary of its founding, these accomplishments will be further advanced during the Turkish Chairmanship, whom we shall provide our full support in attaining its goals and program. Thank you for the attention.

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Annex V to BS/FM/R(2007)1

STATEMENT BY

H.E. VARTAN OSKANIAN, MINISTER OF FOREIGN AFFAIRS OF THE REPUBLIC OF ARMENIA

Mr. Chairman, I join my colleagues in thanking the Government and people of Serbia for their hospitality, and I would like to congratulate the Chairman-in-Office on the successful conclusion of a fruitful term. The Summit being planned for June will mark this organizations 15 years.Anniversaries are by definition significant, since they mark the recurrence of an event of historic importance. This anniversary marks the beginning of a visionary effort to turn neighbors into partners, and thus turn geography into history. For 15 years, a dozen of us have come together at various governmental levels to build bridges across the Black Sea, from west to east and from south to north. The Black Sea Economic cooperation was conceived to provide concrete opportunities for cooperation, integration and support, to provide benefits for all, from a limitless pool of potential, or I should say, a limitless sea of potential. The need that was clear 15 years ago has only become more acute today, especially as we consider deepening our relations with the EU. Mr. Chairman, The specific efforts aimed at broadening interaction between BSEC and the EU and institutionalizing such interaction will be remembered as one of the significant outputs of this period. You have engaged all BSEC institutions so that they can help formulate the structure for such cooperation. A Black Sea dimension within EU policy will formalize the premise that was at the heart of the establishment of this organization that as Europe grows and changes, the promise of economic cooperation within and around Europe will grow, and the countries of the Black Sea must be prepared to contribute to and benefit from such developments. If today, we are signing the Belgrade Declaration, it is because we recognize, reaffirm, and emphasize that which our heads of state and government signed in June 1992 that there are economic disparities amongst our members, that there are political hesitancies caused by historical and other experiences, and finally, that none of these are reason to avoid cooperation. On the contrary, they are the rationale and motivation for enabling, encouraging, supporting cooperation albeit slowly and in stages. And we have done that. From the Black Sea Trade and Development Bank to the International Center for Black Sea Studies, we have built successful, functioning mechanisms for multilateral cooperation. Despite differences among states, BSEC and its institutions have already proven their viability. The BSEC tries to be the place where environmental, economic, social and even political differences are mitigated, keeping in view the future, and not the competitive, sometimes adversarial past.

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None of us, here, in the Black Sea Economic Cooperation are here by invitation. We are here because we are here, in this neighborhood, in this region. And, here, in this region, we have transport systems that need to be united, not divided, energy systems that need to be shared not isolated, banking systems that need resources added, not subtracted, education systems that need to be broadened, not secluded, societies that need to be inclusive, not exclusive. To accomplish this, it is our shared purpose and overlapping interests that must prevail over our sometimes deep-seated differences. As we plan to upgrade and refurbish water systems, we cannot allow existing rail lines to sit idle. As we work to ensure proper conditions for capital flow, we cannot prevent people flow. As we develop projects to share agricultural know-how, we cannot block trade across borders. Mr. Chairman, This organization got its start because there was a vision. It continued to operate because those around the Black Sea needed that vision, and those outside the Black Sea region wanted to believe in the promise of that vision. We wouldnt need an organization such as this one if every country in the Black Sea area cooperated and shared. We need this organization precisely because this is a complex region with a variety of economic, social, historic and political experiences that require special conditions. That is why we are today launching the Black Sea Ring Highway Caravan as a symbol of the importance of communication networks. Yet, the success and effectiveness of this organization will be measured not by the quantity of its projects, but by the audacity of their intent. As we congratulate Turkey on assuming the Chairmanship, we note that it will carry the same challenges that lay on their shoulders at the time of the creation of this organization to be not just the geographical anchor for cooperation in and around the Black Sea, but also the political rudder. We wish them well and stand prepared to work with them to that end. Thank you.

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Annex V to BS/FM/R(2007)1

STATEMENT BY H.E. ELMAR MAMMADYAROV,

MINISTER OF FOREIGN AFFAIRS OF THE REPUBLIC OF AZERBAIJAN

Mr. Chairman, Mr. Secretary General, Ladies and Gentlemen Im pleased to attend the Sixteenth Meeting of BSEC Council of Ministers of Foreign Affairs here in Belgrade and to address this august body. At the outset allow me to express my gratitude to you Mr. Chairman and your national authorities for genuine hospitality and impeccable organisation of our meeting. This meeting is a culmination of yet another term of laborious cooperative efforts in the framework of BSEC aimed at bringing about positive changes of development and prosperity to our increasingly important region. Using this opportunity I would like to congratulate you, Minister Draskovic, and your dedicated team at MFA for your leadership towards successful implementation of the challenging programme of the first Serbian Presidency in BSEC. By the same token I would like also to thank Secretary General of the BSEC PERMIS Ambassador Leonidas Chrysanthopoulos and BSEC PERMIS staff for their valuable contribution to the implementation of the intense programme of activities, as well as for their efforts to further promote BSEC. Mr. Chairman, The importance of our meetings emanates not only from a formal ritual of account of our deeds and achievements but more so from the realistic assessment of new developments and challenges in and around the region and charge the organization with strategic guidance. The period under review was remarkable with regard to new developments that will inevitably have profound implications on the processes in the region. Accession of Bulgaria and Romania to the EU, most recent Communication from the EC to the Council and European Parliament, implementation and planning of important regional projects in energy and transport that significantly alter economic landscape of the region and further enhance its geo-political importance and significance, - just to name the few. We welcome new positive developments in BSEC, I will not repeat all of them, however would briefly refer to some of them. We welcome new developments in the sphere of cooperation in transport. We support all three Memoranda in Transport and consider them as an important development in the framework of BSEC that will facilitate regional trade and economic cooperation as well as might contribute to

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the development of regional networks linked to the Trans European Transport Networks (TEN-T) and serve as an integral part of the East-West transport corridor. We also welcome positive development towards the establishment of cooperative ties between BSEC and TRACECA. We believe that experience gained in TRACECA programme will be valuable for BSEC. This cooperation is becoming even more relevant in the context of the enhanced BSEC-EU interaction. We believe that BSEC should play more important role in the development of cooperation in energy. As a crossroad of major regional energy pipelines linking East with West, the Black Sea region is emerging as an important pillar for energy security and stability, in particular for Europe. Mr. Chairman, We utterly welcome and support the establishment of the enhanced dialogue and close cooperation between BSEC and EU. We hope and believe that complementary to the bilateral cooperation under different instruments, development of regional framework of interaction between BSEC and EU will significantly contribute to the development of BSEC region as a cohesive economic area without new dividing lines part of wider European space. This is also essential to encourage BSEC countries remain committed in their process of reforms and development. Mr. Chairman, Wider Black Sea region is our foreign policy priority and we will support and contribute to positive developments and pledge our commitment as we steadily progress in our economic development. One of the objectives of our national strategy is to develop Azerbaijan as a regional hub with powerful and modern infrastructure capable of serving intense trade flows between Asia and Europe. We have embarked on a comprehensive multibillion programme of upgrading and developing of modern transport infrastructure to be able to handle increasing traffic of goods and general cargo between Europe and Asia. Development of the national transport infrastructure is an integral part of the East-West transport corridor. Recently, in Tbilisi, Heads of State and Government of Turkey, Georgia and Azerbaijan have launched the construction of Baku- Tbilisi-Kars railway link as an important part of this corridor. We have succeeded in the development of the diverse energy infrastructure capable both to support the development and export of national hydrocarbon resources as well as the transit of the resources of Central Asian partners to international markets. We completed the construction and commissioned two important regional pipelines BTC (oil) and South Caucasus Pipeline (natural gas) core elements of the East-West Energy corridor. My country has proved its credibility as a pioneer and champion for many positive and significant developments in the region as well as a reliable partner. There are many examples of successful cooperation in the region that unite and integrate countries, bring development and

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stability, thus demonstrating what we can achieve together, united by common goals. At the same time, continuing occupation by the Republic of Armenia of the 20% of our territory with almost 1 million of refugees and IDPs in the 8 million populated country makes cooperation with this country impossible. Before the withdrawal of the Armenian troops from the occupied territories, return of IDPs back to their homes we can not and will not cooperate with Armenia. This issue is not new and BSEC Member States are well informed on the matter. Mr. Chairman, We support the ongoing process of reforms and restructuring in BSEC to enhance its efficiency and effectiveness. We are in favour of the increase of the staff of the Secretariat, enhancement of its status and professional capacities. However we would urge to continue with the process of improvement and call for not only widening but also deepening of reforms. We need to streamline and simplify the whole process but not create new bureaucratic procedures. Mr. Chairman, Importance and significance of our meeting is emanating also from the fact that it happens on the eve of the BSEC Summit that we all want to see as milestone event, a turning point in the development of our organization. I would like to thank the authorities of the Republic of Turkey for the initiative of organizing BSEC Summit in Istanbul, the birthplace of our organization, during their Chairmanship. And I wish our Turkish friends every success in their very challenging Presidency to further promote BSEC process and to assure of our full support. Thank you.

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Annex V to BS/FM/R(2007)1

STATEMENT BY H.E. LYUBOMIR KYUCHUKOV

DEPUTY MINISTER OF FOREIGN AFFAIRS OF THE REPUBLIC OF BULGARIA

Mr. Chairman, Distinguished Heads of Delegations and Delegates, Excellencies, Ladies and Gentlemen, First of all, allow me to extend my sincere congratulations to H. E. Mr. Vuk Drashkovich, Minister of Foreign Affairs of the Republic of Serbia as the Chairman-in-Office of the BSEC on the successfully conducted Serbian Chairmanship of the BSEC and for the hospitality and excellent organization of this distinguished Meeting, provided by the Serbian hosts. I would like also to extend my best regards to the representatives of the BSEC Observers and Special Guests. The Republic of Bulgaria, as a BSEC Member-State, highly appreciates the efforts of the Republic of Serbia to enhance the common spirit of cooperation and interaction among the countries in the Black Sea region and the results of the scheduled events, especifically in the field of cooperation in transport, energy, combating crime, public administration and tourism. The Serbian Chairmanship, successfully continues the policy of the previous Chairmanships following the BSEC-EU interaction as its top priority.

Mr. Chairman, Nowadays, the BSEC has become an important international institution and useful platform for elaborating a common vision on the role of the Black Sea Region as a strategic bridge between Europe and Asia The BSEC has developed its distinct regional identity as a unique multilateral framework of regional cooperation in the vast area of ever growing strategic importance, stretching from the Adriatic to the Caspian Sea. As an essential transit corridor for oil and gas supply bound to Europe from Central Asian and Caspian area, the Black Sea Region is of growing significance to the EU policies, aiming at diversification of energy supplies. From the very beginning, the BSEC has been paying special attention to all spheres of economic cooperation striving first to accumulate and then to utilize the huge potential of the Black Sea Region and thus ensuring its stability and security. The BSEC is heading towards its 15th Anniversary stronger than ever in its history. We have embarked on a process of reform that started in April 2006 in Bucharest and is still continuing.

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These reforms should make BSEC more efficient on the implementation of economic programs and infrastructure projects with regional and Pan-European importance. Following the accession of Bulgaria and Romania on the 1-st of January 2007, the EU has gained direct borders with the Black Sea Region. Both the BSEC and the EU have to face a new reality and it is important that this emerging reality should not create dividing lines. On the contrary, it is desirable to preserve and foster the positive legacy of the Black Sea regionalism in ways that offer tangible benefits to all BSEC Member States. The Organisation of the BSEC is well placed to provide that necessary link. The BSEC has the capacity to contribute to further building mutual confidence and better understanding in the wider European region, as well as to strengthening mutually beneficial cooperation among the international organizations and institutions involved in the region. The Government of the Republic of Bulgaria strongly supports the development of a modern, efficient transport infrastructure linking the BSEC countries by approving the Memorandum of Understanding for the coordinated development of the Black Sea Ring Highway and the Memorandum of Understanding on the Development of the Motorways of the Sea at the BSEC Region. Both projects will contribute to the improvement of the life standards of the citizens of BSEC, thus making our Organization more relevant to them. The first project will bring economic development to the region, by facilitating the overland transport of goods within BSEC from Europe to Asia and vice-versa, and by promoting tourism. The second project will create the necessary infrastructure for better connecting the Black Sea ports and the Black Sea with the Mediterranean Sea. The Black Sea region has been designated as a key transport area under the agreed plans to develop a pan-European overland transport infrastructure network. Following the EU enlargement to the Black Sea shores, the maritime and river transport dimension also becomes increasingly important. We realize that the further transformation of BSEC into an efficient project-oriented organization requires consistency and continuity in our efforts, as well as taking into consideration the experience of other international economic organizations and fora in this regard. Mr. Chairman, Obviously, there are certain grounds and practical reasons for closer cooperation and better coordination of activities among regional formats and initiatives to avoid duplication, waste of resources and to enhance the synergy effect. The Republic of Bulgaria shares the opinion that an enhanced dialogue with the EU concerning the modernization of the system of public service delivery in the BSEC countries can contribute decisively to the implementation of an effective cooperation in the BSEC region especially in the vital sectors of trade and investments, energy, transport, communications, environment, tourism and agriculture.

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The accomplishment of these goals, will be facilitated by the EU-BESC cooperative activities around policy formulation and implementation in key reform areas such as the rule of law, human rights and market economy, political stability and internal security. We welcome the ongoing activities of the BSEC Project Development Fund and share the view that the existence of the Fund is an important stimulus for the national institutions to elaborate joint cooperation projects. The Fund is one of our responses to the current economic trends and the expected challenges in the future. The PDF is a relatively new financial instrument, supporting project ideas of regional importance at the early stage of their conception However, a lot still needs to be done in order to draw the attention and the financial support of the appropriate international institutions. Our immediate task is to invite and encourage non-BSEC organizations and institutions to present similar frameworks that could bring about new synergies while implementing the project based approach of the BSEC Organization. The projects that are implemented within the framework of BSEC will have a positive impact on the development of integration processes in Central and South-Eastern Europe. The Black Sea Trade and Development Bank (BSTDB) based in Thessaloniki could be an important financial tool in the promotion of common regional projects and mobilization of financial resources for their implementation. The BSEC Working Groups have acquired considerable experience and expertise that can provide a useful basis for interaction with EU institutions. Bulgaria is highly aware of the importance of the role of the institution of Country-coordinator in promoting the activities of the relevant Working Groups and strengthening the cooperation among Member States in certain areas. To that end Bulgaria, as a current Country-coordinator of the BSEC Working Group on Cooperation in Emergency Assistance and of the Working Group on Agriculture and Agro-Industry, is acting in a way to further promote the cooperation in these fields. The BSEC has reasonably good record of regional cooperation in combating organized crime, especially in dealing with illegal migration, trafficking in human beings, drugs and arms, asylum, money laundering and financial and economic crime, as well as joint emergency assistance in coping with the consequences of natural or man-made disasters, strengthening the judiciary in the Member States and increasing police and judicial cooperation. Bulgaria actively pursues a policy aimed at ensuring reliable protection and control at the EU external frontiers. These activities are focused on efficient countering of terrorism, cross-border crime, illegal migration and trafficking of humans, illegal trafficking of goods, drugs, weapons etc. At national level, a set of legislative, institutional, administrative and organizational measures is being undertaken to address border security threats in the aquatic territories and build an efficient system for protection and control of the sea border.

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The Republic of Bulgaria is prepared to partake in all forms of cross-border cooperation designed to enhance security and stability in the Black Sea region and in that regard to strengthen the capacity of the Black Sea Border Coordination and Information Centre in Bourgas and the National Border Coordination Centres of Black Sea countries. Funding is to be sought from the European Neighbourhood Policy Instrument (ENPI). The struggle against poverty and economic backwardness is the main objective of Bulgarias policy in the area of development cooperation in the Black Sea region. Bulgaria regards Black Sea countries as priority destinations for development resources both within the EU policies addressed to third countries and in the context of its bilateral contacts. Eight out of the twelve BSEC member countries are also listed by Organisation for Economic Co-operation and Development as beneficiaries of official development aid. We are exploring the opportunities for collaboration with the Research Programme of the International Centre for Black Sea Studies and establishment of a research network dedicated to Black Sea issues in close cooperation with the emerging European network for development policy studies. Education, inter-cultural dialogue, social welfare and health protection, including the ability to cope with the spread of infectious diseases, have constantly ranked high on the BSEC regional cooperative agenda and can become objects of mutually rewarding partnerships in the context of BSEC-EU interaction. Undoubtedly, the process of modernization of customs operation and border management procedures for the purpose of trade facilitation and enhanced human contacts will encourage the development of SMEs in the BSEC Member States. In this regard I would like to put an emphasis on the activities of the PERMIS and the BSEC Related Bodies the Parliamentarian Assembly of BSEC (PABSEC), the BSTDB, the Business Council and the ICBSS. I am convinced that the present Meeting of the Council will contribute for the further development of the interaction among the BSEC Family for the benefit of the people of the BSEC countries. Mr. Chairman, In conclusion, allow me to express once again our appreciation for the successful Serbian Chairmanship and for the energetic and cooperative spirit of all delegations. Let me also wish every success to the forthcoming BSEC Chairmanship of the Republic of Turkey. We are confident that our Turkish partners will spare no efforts in strengthening and deepening the cooperation among the BSEC Member States. Thank you for your attention.

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Annex V to BS/FM/R(2007)1

STATEMENT BY H.E. NIKOLOZ VASHAKIDZE,

DEPUTY MINISTER OF FOREIGN AFFAIRS OF GEORGIA

Mr. Chairman, Distinguished Colleagues, Ladies and Gentlemen, At the outset I would like to convey our gratitude to the hosts and organizers of this important event. As well I have the honor to greet all the distinguished participants and express the hope that the Meeting will be successful and result oriented.

As well I would like to congratulate the Government and people of the Republic of Serbia with successful Chairmanship-in-Office of the BSEC, which, as we think was really valuable contribution to the further development of the Organization.

Let me start by mentioning the importance of the event that will take place in a very short period the BSEC 15th Anniversary Summit. This Summit is considered as a good opportunity to evaluate the BSEC performance during the period passed and at the same time to outline the future plans and activities aimed at successful development of the Organization.

Some outputs of the BSEC, as a full-fledged Organization in the Region are worth to be mentioned, namely:

Throughout the years BSEC endured many changes, acquired a wide institutional base and has formed a culture of dialogue on mutually advantageous initiatives.

Relevant structures with specified objectives that are necessary for the sound functioning of the Organization have been launched.

Number of states and institutions gained the Observer Status in BSEC while BSEC has developed relations with other International and Regional Organizations.

The BSEC Economic Agenda, outlining the main priority areas of interaction, has been adopted as well as important multilateral Agreements have been signed

Deepening of relations with the EU is regarded as one of the cornerstones of the BSEC policy. In this respect the working document on BSEC-EU interaction has to be underlined. What we need today, is to attract more attention from EU. For this purpose, we have to display before EU the real results of economic integration within BSEC.

The process of BSEC Reform and Restructuring has been launched in order to response to the new challenges and realities in the era of globalization.

Project Development Fund (PDF) has been created with the aim to facilitate the realization of concrete regional projects. The PDF has already started its activities and financed important projects in various fields of cooperation. PDF is also supposed to be real equipment for the implementation of the BSEC guidelines to be transformed into the project-oriented organization.

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The efforts are underway to build strong transport linkages among the BSEC countries to capitalize on the opportunities opened up by the Regions strategic location. In this regard, the currently adopted Memorandums of Understanding on the Coordinated Development of the Black Sea Ring Highway and the Development of Motorways of the Sea in the BSEC Region are of high importance.

But at the same time it should be underlined that although the regional cooperation within the BSEC frames is underway, it remains tentative and uneven. The primary responsibility for restoring healthy economic climate in the region rests with the political willingness of the countries and all states should take part in this effort. I would like to focus attention to some points that in our view have to be taken into the consideration while interacting within our Organization:

The process of globalization is bringing benefits, but at the same time great interdependence. Regional economic cooperation is essential for the development of the countries as it

enhances self-reliance and prospects for the participating states. In order to reap the benefits of cooperation and ensure BSEC development, trade

liberalization, improvement in market access for products of the Member States, and a significant reduction in trade-distorting barriers between the countries, should be the key elements.

In this regard a cooperative strategy for economic development in the BSEC region should have economic and trade liberalization as a central element in the agenda. We can clearly see from the examples of other Organizations like EU, that open trade regime and economic interaction between the Member States promote efficiency, growth and poverty reduction in each country.

As well boosting confidence and restoring regional economy requires strong cooperation especially in such strategic spheres like transport, energy, environment, trade and communications.

I would like to emphasize that Georgia is strongly pursues these goals and in parallel to its participation in regional formats at the same time is contributing to improving regional economic climate by adopting liberal economic and trade policies on the national level.

Thanks to significantly reducing of non- tariff barriers for imports, as well as tariff rates we are enjoying better trade relations with several BSEC Member States. We have also improved conditions for cargo shipment through the territory of the country as currently there are no transit fees for the vehicles and the visa procedures are significantly simplified. Free Trade Agreements as well as the Agreements regarding the visa-free regime were signed with some BSEC Member States such as Azerbaijan, Armenia, Moldova, and Ukraine while we currently have a three-month visa free entry regime with Turkey and are due to upgrade the current preferential trade regime with a Free Trade Agreement.

In addition, such regional projects as Baku-Tbilisi-Ceyhan (BTC), Baku-Tbilisi-Supsa (BTS) and Baku-Tbilisi-Erzerum (BTE) as well as the commencement of Baku-Tbilisi-Kars railway project, is a clear demonstration of productive regional cooperation on energy and transport issues between involved BSEC Member States.

These measures definitely support the development of trade and economic relations, but the overall effect will be more perceptible if other Member States take necessary steps for the liberalization and improvement of the access to their markets as well.

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Dear Colleagues,

All the BSEC Member States are confident that the BSEC-EU relations are of outmost importance as the EU possesses both the experience and resources necessary for the successful economic development and project realization. There are really good preconditions for sound BSEC-EU relations:

The Black Sea Region is a big market for the EU and at the same time it is a very attractive area for investing due to its strategic importance in terms of energy resources, transport infrastructures and shipment routes for goods and cargos.

The substance of the BSEC is very close to the EU as ideologically there are similar goals and objectives like economic development and stability, welfare of the people of the Member States and the promotion of democratic processes and peaceful resolution of existing conflicts in the Black Sea Region.

The Black Sea defines our European character, since it links us with mainland Europe. At the same time most of the BSEC Member States are striving to be integrated into the Euro-Atlantic and European structures while some countries are already NATO members. Now, with Romania and Bulgaria having become full-fledged members of the EU, we are getting closer to Europe not only culturally but institutionally as well.

As we can see there are really good preconditions for wider BSEC-EU cooperation but unfortunately challenges still persist that hamper not only productive BSEC-EU relations but the full-fledged realization of the BSEC regional agenda as well. These obstacles are reinforced by the difference of values and are restraining an open hearted cooperation on many regional issues.

It is even more unfortunate that in contrary to the BSEC main principles and objectives we have a situation when one state undertakes fully inadequate and inappropriate actions towards another state, in the form of unilaterally closing borders, introducing visa regime, export ban and full trade embargo, severing transport and postal links and fixing a political price on energy resources aimed at disrupting economic development of another country.

Ladies and gentlemen,

It is worth mentioning that economic development and prosperity is only possible in the context of a multilateral framework of reciprocity and rules. Regionalism should be a building block and not a stumbling block toward broader economic integration. Multilateral cooperation is like a chain with a number of rings. When even one ring drops, the whole chain will be collapsed. So our prime task within the BSEC today is to preserve, save and develop all possible rings of cooperation. This is imperative for the facilitation and deepening of economic collaboration within BSEC frame.

We must improve our ability to resolve disagreements should they occur. There is really too much that the regional cooperation can do to develop economic growth of each Member State. Regional initiatives can play an important part, but they must be complementary to bilateral efforts. We believe that free and open economic and trade relations will bring prosperity to the region.

In conclusion, let me wish to the Republic of Turkey a very successful Chairmanship in BSEC for the next six months.

Thank You.

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Annex V to BS/FM/R(2007)1

STATEMENT BY H.E. DORA BAKOYANNIS,

MINISTER OF FOREIGN AFFAIRS OF THE HELLENIC REPUBLIC

Dear Colleagues, Ladies and Gentlemen, I am honoured to be participating in the 16th Meeting of the Council of Ministers for Foreign Affairs of the Organization of the Black Sea Economic Cooperation, ere, in the historic and friendly city of Belgrade. Over the past six months, the Republic of Serbia has held the BSEC Chairmanship-in-Office with praiseworthy professionalism and skill. We would like to congratulate the Chairmanship for the successful results presented today to the Council. Ladies and Gentlemen, The BSEC-EU interaction is, we believe, a crucial asset for our Organization. The Chairmanships actions to further strengthen BSEC-EU relations has been both extremely useful and important. We officially supported this Chairmanship in organizing common meetings with the EU bodies. In this context, I wish to highlight the seminar entitled EUROPEAN REGIONALISM: PERSPECTIVES FROM NORTHERN EUROPE AND THE BLACK SEA which took place last November in Athens. Nourishing, and engaging constructively in the relationship between BSEC and the EU, is an on-going process, and we are committed to continuing our efforts. Ladies and Gentlemen, Greece strongly supports the aim that our Organization becomes the main partner of the European Union in the region. Indeed, one way through which this can be achieved is by attributing to the European Union the status of observer to BSEC. In this respect, and according to the internal distribution of competences, the European Commission may represent the Union in a variety of areas. It may also be fully involved in all of the activities of our Organization. I clearly expressed our stance on these issues within the Council of the European Union as well as in several other instances. I am convinced that all of these efforts have largely contributed to raising the visibility of both the wider Black Sea area and of our Organization to both the EU member states and its institutions. In this respect, the Communication adopted by the European Commission, on April 11, 2007, entitled BLACK SEA SYNERGY A NEW REGIONAL COOPERATION INITIATIVE, marks a new start for an invigorated relationship between us. In parallel, a new programme within the context of the European Neighborhood and Partnership Instrument, the Black Sea Basin Programme, is making its first steps. Being a pioneering programme in promoting regional cooperation, we hope that it will also become a model EU programme. This will cause a snowball effect in which the further

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development of BSEC projects involving central and local authorities, as well as business and civil society can be proposed. Dear colleagues, We are hopeful that the EU Troika will be represented at the highest level at the 15th anniversary BSEC Summit, in Istanbul. Greece proposed that, at this important moment, all participating Heads of State or Government adopt a Joint Declaration for the future cooperation in the wider Black Sea area. Such a Declaration may constitute a common political platform for a new multilateral institutional framework of cooperation between the European Union and BSEC. Ladies and Gentlemen, Bearing in mind the challenges of the 21st Century, Greece has actively supported the Organizations restructuring on the basis of the Bucharest Statement. This was done in order to transform BSEC into a modern and more efficient institution. Greece contributed to this process of restructuring and proposed the modernization of its budget, namely in that it should use the Euro as its currency. We believe that the budget should be transformed into an updated programme-oriented structure as per the practice of other international organizations. This new structure will substantially assist Greeces works towards the recognition of the Organizations eligibility for Official Development Assistance by the OECD Development Assistance Committee. If we succeed in this decisive step, we will be able to attract additional international funding for projects by observers and international donors. Moreover, the reforms we have already agreed upon, will increase the Organizations effectiveness and its capacity to face the future. Indeed, we believe that the forthcoming Summit in Istanbul, will allow our Heads of State to endorse all of these reforms. We must not forget that the BSEC Organization faces today some new realities and is called upon to overcome significant challenges. Its future lies in its capacity to implement various concrete projects. Irrespective of their scope, these projects should aim to enhance the spirit of cooperation in the wider Black Sea area. They should also contribute to the economic and social development of the entire region. This latter should be viewed as a necessary first step towards its further European integration. In this respect, a lot of effort must be undertaken in the field of infrastructure, and especially in the transport sector. One of the major projects, in which my country is fully involved, is the construction of the Black Sea Ring Highway. Undoubtedly, this is a very important project. Since the beginning of discussions for the drafting of the relevant Memorandum of Understanding, the Hellenic Republic has tried to provide this project with an impetus, and has proposed to support the Highways Joint Permanent Technical Secretariat. Located in Thessaloniki, this Secretariat will provide the necessary expertise and other valuable services necessary for the successful implementation of the project. On this occasion, may I recall our proposal that this highway be named Road of Argonauts, linking the first important project of our Organization with our common historic tradition. The BSEC Black Sea Ring Highway Caravan which departs from Belgrade, will provide useful data, as well as experience and know-how which will be most helpful in the implementation of this project. Moreover, todays signing of the Memorandum of Understanding for the Black Sea Ring Highway, as well as the signing of the Memorandum on the Extension of the European Motorways of the Sea to the Black Sea and the Caspian Sea are concrete steps towards linking our region to the rest of the European continent. Furthermore, the Black Sea Ring Highway could be upgraded to a Pan-European

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Corridor, integrating it into a lack Sea Electrical Ring and a Black Sea Optical Fiber Network.Indeed, these two proposals are part of the new concept of the BSEC Integrated Networks, which Greece intents to promote in the coming years. The implementation of the new concept of the BSEC Integrated Networks will, however, require the securing of funding from the national budgets of the BSEC member states, the private sector, and international financial institutions. We must all work together towards the materialization of this integrated approach. Today, we will also sign a third Memorandum, namely that of Understanding for the Cooperation between the Diplomatic Academies of the BSEC member states. Through its implementation, the future leading personnel of our Foreign Ministries will foster strong ties, which will facilitate mutual understanding and cooperation. Ladies and Gentlemen, The aforementioned points are part of a larger direction towards which the Organization must move if it aims to fully integrate the area into the European continent. Glancing into the future, it is of paramount importance that the Organization develops a strategic master-plan. Some elements of this master-plan, namely, the Organizations institutional strengthening, the enhancement of relations with the European Union, and the implementation of some regional projects, have already been outlined. It is also important to try to anticipate further actions, in order to meet the needs of the overwhelming majority of our citizens. Last but not least, I would like to stress that the Organization should respond favourably to all the states which manifest an interest in its endeavors and which wish to bring a valuable contribution to our regional cooperation. There should be no exclusions, nor any undue discrimination. In conclusion, I wish to underline the Organizations strength in bringing together, around this table, countries with different histories, cultures and religions. We look forward to continuing in the same spirit of close cooperation with the incoming Turkish Chairmanship, and wish our Turkish colleague every success. Naturally, he can count on our firm support. Finally, let me inform you, that in the forthcoming Istanbul Summit, Greece will be represented by Prime Minister Karamanlis, myself, and Deputy Minister Evripidis Stylianidis. Thank you very much for your attention.

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Annex V to BS/FM/R(2007)1

STATEMENT BY H.E. VALERIU OSTALEP

DEPUTY MINISTER FOR FOREIGN AFFAIRS AND EUROPEAN INTEGRATION OF THE REPUBLIC OF MOLDOVA

Mr. Chairman, Distinguished Ministers, In almost 15 years of existence, BSEC has become more visible and has displayed a broad range of activities during this period. Today the regional cooperation has become more integrated, emerging as an efficient mechanism which can contribute to the achievement of the common goals of the organization turning BSEC area into a region of peace, stability and prosperity. Indeed, this idea enshrined in the Istanbul Summit Declaration on the Establishment of the Black Sea Economic Cooperation, and later in the BSEC Charter, has guided the BSEC Member States in their interaction and cooperation since 1992. The same idea dominated the priorities of the Serbian chairmanship in the BSEC for the last six months. Although Serbia holds the sessional chairmanship in the BSEC for the first time, it organized more then thirty events during this period. A wide range of issues have been considered and relevant directions have been identified for further cooperation in the main areas, among them, transport, energy, environmental protection, institutional renewal and academic cooperation. We note with satisfaction that the BSEC process is still attractive and important to European countries and that they will continue to participate in the BSEC as observers. In this sense, the main achievement of the current presidency, in our view, is the BSEC-EU interaction. It implied a clear framework of contacts at different levels and active implication of EU Member States that have acquired the observer status with the BSEC. The meetings and events held with the EU participation surfaced a common approach to a further BSEC-EU cooperation and interaction. It is quite obvious that the Black Sea area is an integral part of the European system of security and cooperation and, at the same time, a vital link and a strategic connection to the huge potential and resources of Central Asia. BSEC countries acknowledge the fact that further cooperation on trade and development in the region must be linked to a renewed determination to promote enhanced sense of stability in the region. The economic development of the BSEC countries must certainly be accompanied by political solution of unresolved conflictual situations. Stable political environment promotes economic growth by creating conditions that allow trade to be free, labor to move freely, currencies to remain stable, credit to become available and foreign investments to flow in. Dear Colleagues, There are certain strategic developments in the Black Sea area that should attract the attention of policy-makers, analysts and experts from the European continent. Energy development, its secure transit to Europe is critical for European countries. Oil production and transportation, construction of a network of gas pipelines to Europe will undoubtedly diversify

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the energy supply to the old continent. The project of interconnection of electric power systems of the BSEC member states, if implemented, will lead to the creation of a huge energy market and will eliminate the imbalances of energy supplies in the member states. These developments are already impacting and altering the landscape both strategically and economically in and around the entire region. Thus, the unique transit potential and the energy resources of this wider geographic area may become an important guarantor of Europes energy security in the years ahead. The whole system of transport corridors will eventually bring closer the Black Sea area to Europe, making this cooperation mutually beneficial. Two strategic, yet important projects have been launched: development of the motorways of the sea in the BSEC region and coordinated development of the Black Sea ring highway. The Republic of Moldova will sign today these two important legal documents. The network improvements, alongside with the energy developments, will be not only instrumental for enhancing the Black Sea regions natural advantages as a genuine transit area, but would also promote social cohesion and balanced regional growth, strengthening dramatically the security and sustainable development dimensions for the entire region, thus making European communities considerably safer and more secure. The process of fashioning ties to Europe is inevitable and inescapable for the entire region. Recently two BSEC member states entered the EU family. Their full membership will obviously strengthen the linkage between BSEC and EU and their approach shall be to help and assist, not hinder the established relations of BSEC and EU countries. Both BSEC and EU have a mutual interest in developing a meaningful relationship and in establishing a functional mechanism for the implementation of agreed projects and activities at a regional level. In the BSEC-EU relations, regional cooperation in the BSEC area shall be complementary to the existing bilateral arrangements and agreements and shall comprise all BSEC Member States. BSEC must be seen in Brussels as an essential partner in the implementation of the European Neighborhood Policy that can help deliver the relationship and programmes it requires to be effective from the EU perspective. The forthcoming summit of the heads of states of the BSEC member states in June 2007 scheduled to mark the 15 anniversary of the organization will restate the political will of the BSEC countries to advance the mechanism of cooperation in the region and supposedly will identify new dimensions of interactions between member states. It is also expected that a strategic partnership between BSEC and EU will be forged at the highest level. The Republic of Moldova attaches a distinct importance and a special attention to the process of cooperation in the Black Sea area. It supports the recent developments and initiatives launched within the BSEC in major fields of cooperation, particular interest being focused on transport projects. It is paramount that the European Union restates its policy towards Black Sea area and particularly in respect of BSEC as the EU borders moved south-east, BSEC being the only regional organization in the area with an established identity and a well-functioning intergovernmental mechanism. Finally, I use this opportunity to congratulate once again Serbia with a great productive Presidency and I wish good luck to the forthcoming Turkish Presidency, which we are sure, will be a successful one. Thank You.

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Annex V to BS/FM/R(2007)1

STATEMENT BY H.E. MR. ADRIAN CIOROIANU,

MINISTER OF FOREIGN AFFAIRS OF ROMANIA Chairman, Excellencies, Dear Colleagues, Ladies and Gentlemen, I am deeply honored to take part, for the first time, in a Meeting of the Council of Ministers of Foreign Affairs of the BSEC Member States and this to happen in a close and friendly country, our neighbor Republic of Serbia. I would like to take this opportunity and express to our hosts, particularly to Minister Vuk DRASKOVIC and his team. You and your staff have done a good job during the past 6 months. Your dynamism has enabled BSEC to move ahead and increase its profile. We should all be proud of our work and what it stands for. The results of this Organization have shown there is a lot of potential for cooperation, given there is enough political will and flexibility to build on past experiences while looking to the future. While our economic priorities must remain steadfast, our techniques should develop likewise. BSEC may be perceived as a laboratory of ideas and instruments designed to generate effective ways of cooperation. But here is the trap while the Organization covers more and more fields of cooperation, we loose the focus on making it more efficient and effective. Therefore, I believe that we should proceed as soon as possible with a sober assessment of our priorities and adjust our resources accordingly. We have to continue fostering the economic development of our region, implementing the results of progress achieved in the process of major development projects. Transports and energy have a benefic impact for the entire region and beyond. This is why our cooperation in making viable transportation corridors, complementing the already existing European Transportation Network is essential. Thus we can prove that, in spite of the political challenges this area is facing, we are able to work together in a pragmatic manner. Romania pays particular attention to the development of cooperation with the countries of the Black Sea region. We are convinced that any contribution to the programs and projects of development in this region represents an investment in the future security, stability and prosperity of the European continent.

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Romania will continue to plead for reforming BSEC, aiming at enhancing the authority of the Secretary General as a political representative of the Organization, extending the majority vote and introducing a prioritization into our activities. Such measures are meant to increase both the efficiency of our Organization and its visibility on the international level. The real weakness of BSEC, which impedes the potential of the region from taking off in economic terms, resides in the lack of a fast and flexible response to some political and security issues. Asymmetrical risks such as organized crime, illegal trafficking, terrorism as well as frozen conflicts may be perceived as obstacles to the substance and perspectives of our cooperation. The European Union has acknowledged the importance of a safe and stable Black Sea region as an important prerequisite of the European security. The activities undertaken during the Serbian Chairmanship for the finalization of the Platform of cooperation between BSEC and EU are commendable. The latest Communication of the European Commission, entitled Black Sea Synergy demonstrates the need for paying more attention to integrating diversity and ensuring social cohesion in our cities and communities in the context of promoting an all-inclusive, non-discriminative and result-oriented approach in our region. As the Synergy suggests, our approach should remain holistic and cross-dimensional. We need to ensure internal cohesion in our Organization. I look forward to continued close co-operation between all member states and BSEC Institutions, which are the means through which we project our joint engagement. In Romanias view, the future of BSEC resides from the following: The Black Sea region is increasingly becoming relevant on the international scene, due to its rich natural and human resources and enormous economic potential. With an annual rate of GDP growth of about 6% in the last five years, this region has become the second fastest globally and indeed very attractive for foreign partners. The new European Neighborhood Policy (ENP) creates unique opportunities for the successful development of BSEC-EU cooperation. It is now up to us to identify the proper modalities for making efficient use of this unique opportunity. Despite their well-known differences, the BSEC countries have many times proved determination to gradually establish a space of enhanced regional cooperation in the Black Sea region, open to extra-regional actors, countries and international organizations alike. We should continue to vigorously build on these efforts. Still, a more project oriented approach is needed. Major infrastructure projects such as the Black Sea Ring Highway and the Motorways of the Sea are important steps in our cooperation. But, lets not forget that they are the first ones. The increasing number of countries and organizations showing clear interest for BSEC shows the importance that our region represents. Among the countries which are interested to cooperate with BSEC are the UK, US, Japan, Israel and even China.

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Accelerate the economic and political reforms with special emphasis on promoting democracy, good governance, rule of law and fundamental freedoms. A special attention should be paid to creating a conducive, transparent and more secure business environment. Distinguished Colleagues, On 25 June 2007, the organization will celebrate the 15-th anniversary since the Istanbul Declaration was signed and BSEC Economic Cooperation Initiative launched. At this juncture, we have good reasons to state that, in a not too long period of time, considerable progress has been achieved in many areas of common interest, including the transformation of the Initiative into a full-fledged Economic Organization and its increased capacity to formulate appropriate development strategies and programs. Let us work together and prove, by the power of facts, that BSEC is and will remain a representative and effective instrument of mutually beneficial cooperation in a region deeply connected to the European and globalized world. Before concluding, let me express once again my appreciation for the excellent organization of this meeting and for the warm hospitality extended to us by the Serbian authorities and by wishing every success to the incoming Turkish Chairmanship. Last but not least, I want to wish to our Turkish friends good luck in preparing the 15th Anniversary Summit of BSEC, an event of a tremendous importance for the future of our Organization. Thank you for your kind attention.

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Annex V to BS/FM/R(2007)1

STATEMENT BY

H.E. SERGEI V. LAVROV, MINISTER OF FOREIGN AFFAIRS OF THE RUSSIAN FEDERATION

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49

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Dear Mr. Chairman, Ladies and Gentlemen, First of all, I would like to thank our Serbian colleagues for the warm hospitality and the impeccable organization of the meeting. When we handed over the BSEC Chair to Serbia six months ago, we expected that the progressive development of our organization would be maintained. I am pleased to note that our expectations have been satisfied. The inter-governmental interaction mechanism in the region continues to function well and is gaining momentum. Russia contributes significantly to the development of the Black Sea region, exercising more actively its additional opportunities for intensifying practical cooperation in the BSEC. We highly appreciate the results of the second meeting of the Ministers of the Black Sea Economic Cooperation countries responsible for institutional renewal and public administration. Cooperation in this field may be beneficial to many countries of the region. The sessions of working groups on energy, transport, emergency management and education, agriculture and pharmaceutics, banking and finance have been held in a business-like atmosphere. We would like to see transport and energy interaction be organically supplemented by other joint priority activities and not only in economic sphere. It would not be an exaggeration to say that the BSEC is approaching its 15th anniversary on a qualitatively new stage of its development. The Organization has earnestly launched a number of important regional projects. Russia is taking a most active part in them. This is related first of all to transport cooperation. Memoranda on the construction of the Black Sea Ring Highway and on the development of the motorways of the sea approved by the Moscow CMFA meeting of November 2006 are expected to be signed. Both these documents, to our opinion, open up good perspectives for enhancing the transport infrastructure in the region and linking it to the European and Asian motorways. In addition to the Memorandum on the Ring Highway, the Ministry of Transport of Russia has prepared and will shortly disseminate a package of documents specifying work procedures for the project management bodies. Thus its practical implementation will be launched. Other initiatives in the field of transport also continue to be implemented. This refers in particular to the establishment of regular passenger and ferry service between the Black Sea ports. Such progress has to a great extent been determined by the intensified activities of the relevant BSEC working groups. We view them as the main fora for constructive expert level discussions of sector issues. Besides, those of the issues that, if settled, could promote further regional economic cooperation, bring tangible results, and positively affect the lives of people should be discussed in the first place. We apply the same criteria to evaluating the situation in other areas of joint activities, including energy supply. As you know the issue of global energy security was one of the major priorities during the recent Russia's G8 Presidency. As a result of its discussion the conceptual framework of cooperation basing on the interests of producers and consumers of energy supplies, as well as of transit countries, has been approved. We will follow these principals in all aspects of practical energy cooperation.

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The BSEC profile working group continues to elaborate plans for creating the Black Sea Electricity Ring in the framework of synchronization of the energy systems of Eastern and Western Europe which commands support both at political level and by business community. A feasibility study of such synchronization, now in full progress, is expected to be completed already next year. Another promising energy project considered by the BSEC is aimed at developing a data bank and improving the compatibility of the participating countries energy strategies. We propose to accelerate this work so that a conference on comparing energy strategies could be convened within the agreed time frame, that is by the end of the year. A significant initial progress has been achieved also in various areas of activities of the Organization such as emergency response, communications and tourism, combating international terrorism and organized crime. Launching of the Liaison Officers Network for Combating Organized Crime during the Serbian Chairmanship became a landmark event for the BSEC. New perspective projects of the Black Sea Economic Cooperation include the exchange of experience in introducing modern educational systems, customs regulation, culture, etc. We support Serbia's initiative to hold a meeting of rectors of the participating countries diplomatic academies. We hope that the forthcoming signing of the Memorandum of Understanding between the MFA diplomatic academies and institutes will launch a new dimension of cooperation within the Organization. And yet the projects contributing to the integration of the Black Sea countries into the system of international division of labor remain an absolute priority for us. The BSEC Project Development Fund, which has an experience in implementing multilateral project proposals, is a leading specialized institution in this area. As of now, 36 such proposals have been already submitted. We believe that the Fund's activities deserve support, we call upon our partners that have not yet done so to make their contributions. We propose to focus on implementing projects with high economic impact. Attractiveness for the business community is a halfway to their success. It is the thing to remember when submitting project proposals. We strongly believe that the BSEC, including in cooperation with other international organizations, will further contribute to the efforts aimed at the economic development of the Black Sea region, establishing of a favorable political climate there and building confidence. The activities of the Parliamentary Assembly of the BSEC, the Black Sea Trade and Development Bank, Business Council, and the International Center for Black Sea Studies are geared at achieving these goals. Their active work during the Serbian Chairmanship undoubtedly deserves the highest praise. We welcome the progress made in the establishment of relations between the BSEC and the European Union. It goes without saying that such cooperation is realizable only on the equal rights basis. In the long term, this could lead to the efficient joint implementation of large-scale multilateral development projects in the region. It seems that we should start with the preparation of a feasibility study for the construction of the Black Sea Ring Highway as well as studying jointly with the European Commission experts of other projects, prepared by the relevant BSEC working groups. For the near future, the Organization plans to hold a summit meeting dedicated to its 15th anniversary. Our common goal is to consolidate the unique role of the BSEC as the only structured and efficient regional organization in the Black Sea region, capable of making a governmental-

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coordinated contribution to the multilateral economic cooperation gaining momentum in the region, and identifying its new areas. In conclusion, I would like to assure our Turkish friends and partners, who will soon take over the Chairmanship of the organization, that we will support the efforts aimed at holding a fruitful summit and ensuring a further progress of the BSEC for the benefit of States and peoples of the Black Sea region in general. Thank you.

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Annex V to BS/FM/R(2007)1

STATEMENT BY

H.E. ABDULLAH GL, DEPUTY PRIME MINISTER AND MINISTER OF FOREIGN AFFAIRS

OF THE REPUBLIC OF TURKEY Mr. Chairman, Mr. President, Distinguished Colleagues, Excellencies, Ladies and Gentlemen, I am very pleased to attend this sixteenth meeting of the Council of Ministers of Foreign Affairs in this historic and beautiful city of Belgrade. At the outset, I would like to thank my distinguished colleague, Mr. Vuk Draskovic, Minister of Foreign Affairs of Serbia, for the warm hospitality extended to me and my delegation by the Serbian authorities. I also would like to congratulate Serbia for a successful Chairmanship-in-Office of the BSEC. Distinguished Colleagues, The BSEC was established on the idea that stronger economic cooperation among the Black Sea countries would enhance stability in the region. Thus, its institutional framework was set up with the underlying motive of integrating the region to the world economy. Encompassing an area of approximately 20 million square kilometers with 330 million people, BSEC has a huge economic potential. Its vast natural and human resources enabled the BSEC countries to have remarkable economic growth and development. Over the past five years, the BSEC region as a whole has been one of the fastest growing in the world, with 6% annual GDP growth. Total GDP of BSEC countries amounts to 3.4 trillion USD in 2005. It represents 7.6% of the overall world economy. The share of the BSEC countries in the world economy is increasing steadily. Our Organization currently possesses all the features that can be expected from a regional cooperation platform. I believe that what we now need is to look forward and find a common vision and determination among the Member States for concrete achievements. These achievements should create added value for the daily lives of our peoples. I consider that the two Memoranda of Understanding both for enhancing land and sea transport including infrastructure that we are signing today will mark a new chapter in the history of BSEC. Turkey will undertake the Chairmanship-in-Office of BSEC as of 1st of May. During her Chairmanship-in-Office, Turkey is prepared to make every effort to achieve a considerable degree of progress in all the areas of cooperation.

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For this reason, during our Presidency, we will base our vision on the following key points: - completing the reform, - increasing efficiency and practicality, - forming a project oriented approach, - reaching out to other partners, - increasing public awareness and common identity, - facilitating trade and investments, and - focusing on a sectoral approach.

One of the most important steps for attaining this goal was to complete the reform and restructuring of the BSEC in line with the Statement adopted in the Councils Bucharest meeting. We believe that this will ensure a more rapid and effective way of decision-making. For this reason, Turkey has proposed a fast-track approach which will enable the interested members to endorse the implementation of a project where other members will reserve their right to join in, at a later stage. Another important element is giving a project-oriented vision to BSEC by strengthening the Project Development Fund (PDF). We consider this Fund to be a useful tool for undertaking new projects, which will help to strengthen the image of our Organization. However, at the moment the PDF does not have sufficient resources to provide a meaningful amount of finance for major projects. Therefore, we strongly encourage Member States to lend their support to the Fund. Mr. Chairman, Distinguished Colleagues, Working together with other international partners would also strengthen our Organizations capacity to carry out important projects. One of such projects is due to be implemented by the partnership of UNDP and BSEC, with the financial support of Turkey and Greece. That project is aimed at expanding intra-regional trade and investment links in the region, thus achieving a higher intra-BSEC trade and investment flow. Another important opportunity for partnership is also emerging. Since our last meeting in Moscow, two more BSEC countries have completed their accession to the EU: Bulgaria and Romania. We consider that this is bound to create a stronger dialogue between BSEC and the EU. Turkey also welcomes the recent initiative of the EU to develop a comprehensive policy towards the Black Sea. We consider that BSEC should be the natural partner for the EU in the region. I also would like to emphasize the importance of BSEC for the awareness of a common identity among the peoples of the region which, in fact, has not been given due regard until recently. BSEC is a unique platform of cooperation for countries with common historical, cultural and social values. In a region where the quest for stability is the priority, the importance of building bridges between the peoples of the region by underlining these common values should not be underestimated. Scientific and technical cooperation among universities could be an excellent tool to this end.

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Mr. Chairman, Distinguished Colleagues, We are determined to spend every effort to finalize the ongoing projects as soon as possible. One major priority of our strategy will be the facilitation of trade and investments among the BSEC countries by working on issues such as visa facilitation, elimination of non-tariff barriers and more interaction between the business communities. We believe that there is a huge potential for trade between the Black Sea countries which have complementary economic structures. For example, the overall trade volume of Turkey with BSEC countries has been 22.1 billion US Dollars in 2004, while it has amounted to around 38.2 Billion USD in 2006, which is in fact a substantial increase. This constant trend of increase in trade volume for Turkey with BSEC countries may also be seen as a consequence of a general trend of increase in intra-BSEC trade. Through BSEC we should be able to seize the opportunity for cooperation in the area of trade. This can be in the form of trade facilitation or more ambitious schemes with potential partners such as the EU, subject to a consensus between the two sides. One of the most essential elements for regional economic cooperation organizations is existence of a bank to finance trade and projects. The BSEC has this opportunity. The Black Sea Trade and Development Bank based in Salonica was created to contribute to the goals of BSEC. Due to the importance we attach to this Bank, we are among the three biggest share holders. It is good to see that small share holder countries have started to increase their portfolio on project basis. We believe Member States should benefit more from the Bank. We will encourage sectoral approach and try to make further progress in the fields of transport, telecommunications, energy, environment and combating organized crime. In addition, we are going to focus on strengthening the financial structure of BSEC in order to enable the Organization to undertake major regional projects. Distinguished Colleagues, Due to its strategic importance, the Black Sea basin has become the focus of growing interest of major international actors including the EU. BSEC can take advantage of this new interest to explore new horizons. This Organization should bring each of us closer and enrich our strategic vision. We should assume the ownership of our region and BSEC more. We should leave the status quo behind and bring new thinking and dynamism to the Organization. After all, our common goal is same: stability, economic prosperity and a secure environment for all. Undoubtedly, ongoing political difficulties in our region are the greatest threat to the progress we are making in BSEC with the efforts of all Member States. This is the main reason why we do not prefer BSECs involvement in political matters. However, we can use the potential offered by Ministerial Meetings, especially the BSEC Council of Ministers of Foreign Affairs to be utilized for informal exchange of views on political issues as well, in order to facilitate solutions. Todays world is much different than the one when BSEC was established. The importance of Black Sea and Eurasia is on the rise. Black Sea basin is becoming a centre of gravity regarding oil,

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energy and trade. We have every reason to believe that this trend will continue. Increasing political contacts, trade and tourism will bring the region to a more central position. Finally, I would like to emphasize the importance of BSECs 15th Anniversary Summit for our Organization. I believe that the Summit will constitute an important milestone in realizing our vision to make BSEC vital to the cooperation in the Black Sea region. Therefore I would once more like to express my sincere wish to see all the BSEC Member States being represented at the highest level at the Summit to be held in stanbul on 25th of June. Thank you.

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Annex V to BS/FM/R(2007)1

STATEMENT BY H.E. MYKOLA MAIMESKUL,

DEPUTY MINISTER OF FOREIGN AFFAIRS OF UKRAINE Dear Mr. Chairman, Secretary General, Excellencies, Ladies and Gentlemen, Let me start with the expression of my sincere gratitude to You, Excellency, for the hospitality extended to us in Belgrade, I'm pleased to note that the Serbian Chairmanship-in Office was very intensive and impressive in terms of the number and the content of the events that look place in its framework. Dear Ladies and Gentlemen, I am pleased to highlight the new positive development that the BSEC-EU interaction has received. It should be deepened by the efforts of both sides. I am personally convinced that the new Member States of the EU will strongly supplement valuable contribution of Greece to the promotion of the BSEC to the EU. The last joint meeting in Istanbul on 23 March 2007, proved that our interaction could be built on a pragmatic basis and coincidence of interests of the BSEC and the EU in such fields as transport, energy security, ecology, border control, crime prevention etc. In this regard, I believe that the, BSEC policy document "BSEC-EU Interaction: The BSEC Approach has been thoroughly studied by the European Commission and its Communication with respect to the Black Sea Region would also create the basis for cooperation with the MSEC as principle partner in the framework of the EU Black Sea synergy. I would like to inform you that on 27 April 2007 the capital of Ukraine will host the International Conference "Perspectives of Cooperation Between the EU and Regional Organizations of the Black Sea Region" organized by the Friedrich Ebert Fund and National Institute on the Problems of International Security. I believe that the outcome of the Conference will also contribute to the elaboration of detailed road map on further development of the dialogue between the EU and the BSEC. I would like to encourage the incoming Turkish Chairmanship to further develop the success achieved in establishing this dialogue. While speaking about the pragmatic approach to the EU-BSEC cooperation, I would like to stress on the BSEC as the economic Organization.

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In this sense I am confident that trade, being a main index of the effectiveness of economic activities will play more profound role in the Black Sea region. That is why the most important task of the Organization should be the assistance and liberalization of trade by elimination of the numerous tariff and non-tariff barriers. In this connection I would like to recall the Declaration of the Special Meeting of the Ministers of Foreign Affairs with the participation of the Ministers of Economy, held in February 1997, which in my view is worth to be revived under the current circumstances. I mean notably the initiation of negotiation process on the new enhanced cooperation agreements with the EU, that envisage establishment