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Mr President, thank you very much for speaking to Bloomberg.

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Here in Vladivostok we're on the edge of the Pacific and on the eve 

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of the second Eastern Economic forum. What do you hope to achieve at it?

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We would like to draw the attention of our partners,

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of potential investors to the Russian Far East.

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In this sense, the Forum as an event is similar to other 

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regional forums of this kind.

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Russia hosts a lot of such forums,

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including the International Economic Forum in St Petersburg, 

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(usually in the beginning of summer)

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, as well as the Economic Forum in Sochi.

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The Far East is of particular significance for us in terms of this 

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region’s priority development.

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Over the last few years, let us say even over the last decades,

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we were faced with many problems here.

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We paid little attention to this territory although it deserves a lot 

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more of it, because it concentrates great wealth as well 

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as opportunities for Russia’s future development.

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Not only for Russia alone, but also for the development of the entire 

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Asia-Pacific region (APR), because this land is very rich 

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in natural and mineral resources.

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When we talk about the Far East we usually mean the Far East itself,

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including Primorye Territory, Khabarovsk Territory, Kamchatka,

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and Chukotka, as well as Eastern Siberia.

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All this area contains tremendous resources, including oil and gas,

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90 percent of Russian tin, 30 percent of Russian gold,

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35 percent of forest, 70 percent of Russia’s fish is 

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harvested in the local waters.

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This is a region with a substantially developed transport 

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and railroad infrastructure.

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In recent years we have been actively developing road connection.

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There is also a huge potential for developing the aviation 

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and space industries.

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As you might have noticed we have launched a new Russian spaceport 

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in one of the Far Eastern regions.

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As I have already said, the aviation industry,

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including combat air force, has been traditionally developing here.

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It is the Russian Far East where the SU aircraft,

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which are well known worldwide, are manufactured.

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Finally, we are resuming the manufacturing of sea vessels here,

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first of all for civilian purposes.

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Just earlier today I witnessed the commissioning of one 

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of the most promising sites of this kind.

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And this is also a good opportunity for humanitarian 

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exchanges with our neighbours.

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Our intention is to develop music,

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theatre and exhibition activities here.

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Just recently Mr Gergiev, a distinguished Russian musician 

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and conductor, held his concerts here.

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We are going to set up a branch of the St Petersburg 

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Mariinsky Theatre here.

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We are also planning to open local branches of the Hermitage Museum 

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and the Vaganova Academy of Russian Ballet.

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As you can see, we are now present in the building 

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of the Far Eastern Federal University.

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I am sure you too have had a chance to assess the size 

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of the University – the number of foreign students studying here is 

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already in the thousands; there is also a great number 

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of foreign professors.

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We would like to see science and higher education developing here,

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so that it could become one of the major research centres 

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in the entire APR system.

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Undoubtedly a lot remains to be done here,

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but given the labour market demand,

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the relevance of such a university is undeniable.

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In addition to everything that I have already mentioned,

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there is another domain that we consider relevant and having good 

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prospects – marine biology.

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For many years this region has been home for one of the leading 

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institutes of the Russian Academy of Sciences,

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the Institute of Marine Biology.

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You know, we are launching a new centre here;

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we have built an oceanarium on its premises,

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which is supposed to be not only a public place where people,

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I am sure, will enjoy the wildlife,

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but also part of the Institute of Marine Biology.

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A very interesting and promising cluster has formed here,

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and we would be happy if our potential investors,

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our counterparts from abroad, first of all those from 

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the Asia-Pacific region, knew more about it.

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One of the guests who have coming is Shinzo Abe.

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There seem to be the beginning of a political deal: you might give up 

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one of the Kuril Islands in exchange for greater economic cooperation? 

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Are you opened to a deal of that sort?

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We do not trade territories although concluding a peace treaty with 

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Japan is certainly a key issue and we would like to find a solution 

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to this problem together with our Japanese friends.

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Back in 1956, we signed a treaty and surprisingly it was ratified both 

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by the Supreme Soviet of the Soviet Union and the Japanese Parliament.

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But then Japan refused to implement it and after that the Soviet Union 

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also, so to say, nullified all the agreements reached 

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within the framework of the treaty.

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Some years ago our Japanese counterparts asked us to resume 

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the discussions of the issue and so we did meeting them halfway.

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Over the passed couple of years the contacts were practically frozen 

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on the initiative of the Japanese side,

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not ours. At the same time, presently our partners have expressed their 

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eagerness to resume discussions on this issue.

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It has nothing to do with any kind of exchange or sale.

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It is about the search for a solution when neither party would be 

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at a disadvantage, when neither party would perceive itself 

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as conquered or defeated.

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Are you as close to a deal now as you have been since the 1960s? Is it 

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better now than any time since then?

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I don’t think that we are closer than in 1956 but anyway we have 

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resumed our dialogue and agreed that our foreign ministers and relevant 

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experts at the level of deputy ministers will intensify this work.

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Naturally, this issue has always been a subject of discussions between 

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the Russian President and the Prime Minister.

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I am sure that during the meeting with Mr Abe here in Vladivostok this 

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issue will also be discussed, but finding a solution requires it to be 

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well thought out and prepared, and I reiterate,

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a solution that is not based on the principles of causing damage, but,

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on the contrary, on the principles of creating conditions 

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for developing long-term ties between the two countries.

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You seem to be more relaxed about territory in Asia.

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You mentioned the Kurils, you gave the island of Tarabarov back 

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to China. Would you consider giving back Kaliningrad as a tribute?

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We handed over nothing, those territories were disputed and we have 

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been negotiating this issue with the People's Republic of China,

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let me stress that, for 40 years,

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and finally managed to come to an agreement.

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One part of the territory was assigned to Russia, while another part –

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to the People's Republic of China.

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Notably, it was only possible, and this is very important,

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due to the high level of trust Russia and China reached 

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in their relations by that time.

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If we reach the same level of trust with Japan,

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we might be able to reach certain compromises.

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However, there is a fundamental difference between the issue related 

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to Japan’s history and our negotiations with China.

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What is it all about? The Japanese issue resulted from World War II 

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and is stipulated in the international instruments on the outcomes 

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of World War II, while our discussions on border issues with our 

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Chinese counterparts have nothing to do with World War II 

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or any other military conflicts.

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This is the first, or rather, I should say, the second point.

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Thirdly, regarding the Western part. You have mentioned Kaliningrad.

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It was a joke.

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All jokes aside. If someone is willing to reconsider the results 

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of World War II, let us discuss this.

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But then we will have to discuss not only Kaliningrad,

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but also the eastern lands of Germany, the city of Lvov,

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a former part of Poland, and so on,

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and so forth. There are also Hungary and Romania on the list.

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If someone wants to open this Pandora's box and deal with 

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it, all right, go for it then.

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Part Two to be published.

