Romanian ForMin Teodor Baconschi met Ukrainian Minister of Foreign Affairs Konstantin Grishenko on Thursday in Kiev

Ukraine is closely following the evolution of the anti-ballistic system in Europe and does not want the project to raise controversies among the states in the region, said Ukrainian Minister of Foreign Affairs Konstantin Grishenko on Thursday in Kiev, during a press conference held together with his Romanian counterpart Teodor Baconschi. 'We do not want this project to trace a divergent line between two neighbouring countries and among the countries in the region,' said the Ukrainian minister. 

The Romanian Chief Diplomat restated that the Romanian-American agreement on the anti-ballistic shield signed in Washington in September represents Romania's contribution to the future defence mechanism developed within the NATO and that the project is strictly defensive. 

'We signed this Romanian-American agreement as a contribution to the future anti-missile system developed within the NATO. It is about a strictly defensive system we discussed with our NATO partners and our partners in the region. We are positive that the NATO-Russia, the EU-Russia dialogue and the US-Russia dialogue will lead to the clarification of the political climate and to the trust that this system is strictly for the protection of the allied territory,' Baconschi said. 

'At bilateral level, we are totally open for our military experts to discuss in total transparency to see how Ukraine is interested in this project,' added the Romanian Chief Diplomat. 

The Moscow authorities systematically demanded 'written guarantees' that the shield will not be used against Russia. In their turn, the Ukrainian authorities, a state between Russia and Romania, always said they are only interested in a system including Russia as well, Agerpres correspondent informs.
Baconschi also said that the Romanian and Ukrainian sides decided to strengthen their cooperation in the European Union's Strategy for the Danube Region and to carry out trilateral trans-border cooperation projects with European funding, among Romania, Ukraine and the Republic of Moldova.

This is the first visit of Minister Baconschi in Kiev, after the one paid by former Romanian chief diplomat Cristian Diaconescu in January 2009. The tone of the statements the two ministers made was a warm one, both of them voicing their being in favour of the political dialogue and economic cooperation strengthening between Romania and Ukraine.

At the same time, the Romanian Foreign Affairs Minister gave guarantees that the Romanian side would make all efforts for modernizing and completing as soon as possible the bilateral judicial framework. 
Romania and Ukraine in Kiev, on Thursday, signed the Cooperation Agreement between Romania's Ministry of Justice and Ukraine's Ministry of Justice and the Collaboration Protocol between MAE and the Foreign Affairs Ministry of Ukraine in the field of European integration.'I am convinced that the protocol signed today concerning the European integration of our country is an important document in the bilateral relations,' Konstantin Griscenko said. 
Inquired about the bones of contention between the two countries, such as building the Bystroye Channel, of which Romania does not approve, the Romanian Chief Diplomat said the two parties would be able to find solution just through political dialogue. 

'The will to cooperate and to reach reasonable solutions is essential, either related to Bystroye, or to minorities, Krivoy Rog or any other topic,' Teodor Baconschi pointed out. 

'It is fundamental that both parties should display a political desire to enter a stage of getting the relation back to normal and of developing it to the common benefit of the two societies and states,' concluded the Romanian Chief Diplomat. 
During his visit to Kiev, Romanian Minister of Foreign Affairs Teodor Baconschi extended an invitation to his Ukrainian counterpart Konstantin Grishenko to visit Bucharest in 2012 to initiate annual discussions between the two countries at the level of chief diplomats.

As regards the possibility of a meeting between the two presidents, the Romanian Chief Diplomat has not set a date. 'Our efforts will lay the foundations of a high level political dialogue the moment there is enough substance for this dialogue to take place,' Teodor Baconschi said. 




Source: Actmedia Online

Romania Updates -- Nov 11, 2011

ROMANIA INFLATION QUICKENS TO 3.6 PCT Y/Y IN OCT

Romania's annual inflation quickened to 3.6 percent in October from September's 3.5 percent, above market expectations but still within the central bank's target band, official data showed on Thursday.

2013 BUDGET DEFICIT

Romania plans to reduce its fiscal deficit until it achieves a balanced budget in 2013, President Traian Basescu said at a meeting with German Chancellor Angela Merkel in Germany. Ziarul Financiar, Page 1

OLTCHIM

Russian energy company TISE is interested in buying state-owned chemicals firm Oltchim, which the government aims to sell under its IMF-backed privatisation plan by April 2012, the economy ministry said on Thursday.

Romania Updates -- Nov 10, 2011

Romania’s inflation rate unexpectedly rose in October for the first time in five months because of higher heating bills after the government cut subsidies to meet pledges to international lenders, Bloomberg reports.

The annual rate advanced to 3.55 percent from 3.45 percent in September, the National Statistics Institute in Bucharest said today in an e-mailed statement. The median estimate of nine economists surveyed by Bloomberg was for a 3.2 percent rate. Prices grew 0.6 percent on the month.

Romania’s inflation, which has slowed more than forecasts since July, prompted the central bank to lower its main interest rate on Nov. 2 to aid an economic recovery. The rate, which will probably end 2011 at 3.3 percent, leave policy makers with more room to reduce borrowing costs, Governor Mugur Isarescu said on Nov. 7.

Non-food costs advanced to 5 percent from a year earlier in October from 4.8 percent in September, mainly driven by surging heating and fuel prices, according to the institute. Food prices grew 1.7 percent in October, matching the September growth pace, while services prices growth accelerated to 3.6 percent from 3.5 percent the previous month, the institute said.

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TRANSELECTRICA RESULTS

Romania's state-owned power grid operator Transelectrica posted a nine-month net profit of 153.5 million lei ($47.8 million), it said on Thursday.

ROMANIA TO START DOLLAR ISSUE ROADSHOW NOV. 11

Romania's finance ministry will start a roadshow for a potential international debt issue, the second this year, on Nov. 11, deputy Finance Minister Bogdan Dragoi said on Wednesday.

ROMANIA JAN-SEPT TRADE GAP SHRINKS TO 6.9 BLN EUROS

Romania's trade deficit shrank by 1.2 percent on the year to 6.89 billion euros in January-September, with exports growing faster than imports, the National Statistics Board said on Wednesday.

ROMANIA POWER GRID NEEDS BIG INVESTMENT-OFFICIAL

Romania's power transmission system operator Transelectrica needs around 500 million euros to upgrade the power grid so it can handle an expected surge of wind generation, a company director said.

NUCLEARELECTRICA

Romanian investment fund Fondul Proprietatea said on Thursday the government's plan to hike the share capital of nuclear power plant Nuclearelectrica by 1.4 billion lei may reduce the fund's participation in the company by up to 1.8 percent. The fund said it will take all possible measures, including legal action, to protect its assets.

BCR

Romanian regional investment fund SIF Banat-Crisana, one of the five minority holdings in Banca Comerciala Romana (BCR), has signed papers to sell its stake in the bank to majority holder Erste Group Bank , it said on Thursday.

The fund will get 123.6 million lei and 1 percent of shares in Erste for its stake in BCR.

Romanian president's official visit to Germany

Romanian president, Traian Basescu, will meet German chancellor Angela Merkel in Berlin today, where he will also attend the conference ‘Germany and Romania – partners in Europe’, organized at the Deutsche Bank headquarters in Berlin. 

Basescu was invited to the German capital by his counterpart Cristian Wulff.

Deutsche Bank representatives have previously said the bank was planning to acquire a Romanain bank, media reports said.

Back in October, Traian Basescu also met Angela Merkel in Bucharest , when the German chancellor asked for a more transparent business framework and for clarity in the Romanian justice, as for German investors that would would seek entering the local market. The two heads of state have also discussed about the Danube strategy.

The Romanian President’s delegation to Berlin includes the European Affairs Minister Leonard Orban and the state secretary in the Foreign Affairs Ministry Bogdan Aurescu.

May 12 (Reuters) - Here are news stories, press reports and events to watch which may affect Romanian financial markets on Thursday.

TURKMEN PRESIDENT IN ROMANIA

Turkmen President Gurbanguli Berdimuhamedov is on a two-day visit to Romania and is expected to meet President Traian Basescu and other Romanian officials.

PETROM Q1 NET PROFIT RISES ON OIL PRICE, COST CUTS

Romania's top oil and gas company Petrom (SNPP.BX), majority controlled by Austria's OMV (OMVV.VI), posted a 4.6 percent rise in first-quarter net profit on Wednesday, due to higher oil prices and cost cuts.

* Petrom had investments of 633 million lei ($223.1 million) in the first quarter, down 12 percent on the year. (Ziarul Financiar, Page 8)

* The company also said shareholders were not asked to renew an approval to hike Petrom's capital. (Adevarul, Page 20)

TRANSELECTRICA

Romania's economy minister appointed Horia Hahaianu as the new head of state-owned power grid operator Transelectrica (TSEL.BX), replacing former director Stelian Gal.

Since taking his post more than half a year ago, the economy minister has replaced several heads of state-owned energy companies, mirroring similar moves by his predecessors.

NO CONFIDENCE MOTION

Opposition Social Democrats and Liberals may file a new no confidence motion against the centrist coalition government in June. (Adevarul, Page 7)

NATO – Romania, Update

U.S. and Romania Move on Missile Plan

WASHINGTON, May 3 — The United States and Romania announced an agreement on Tuesday on the location for basing American antimissile interceptors in Romania as part of a program designed to link Washington and its NATO allies against an Iranian threat. The agreement immediately drew complaints from Russian officials.

Officials said the site selected for a key component of the missile-defense system was Deveselu Air Base, near the city of Caracal in southern Romania. The deployment of the SM-3 missiles is expected by 2015, officials said. About 200 American personnel are expected to help operate the system.

Russia immediately complained that the interceptors in Romania could undermine its nuclear deterrent, and said the step ignored commitments made by the United States that Russia would have a role in decision-making.

“We regret to say that practical steps on building the European segment of the U.S. global defense system are being made regardless of Russian-U.S. dialogue on missile-defense problems, which was started under a decision by President Dmitri Medvedev and President Barack Obama,” said a statement from Russia’s Foreign Ministry, according to the Interfax news service.

The statement expressed a Russian desire for legal guarantees from the United States that the missile defense system would not target Russian missiles.

American officials rejected the Russian complaints, and cited the invitation from the United States and NATO for Moscow’s participation in a common missile-defense system for Europe.

“Missile-defense cooperation with Russia is a key U.S. goal,” said a Defense Department official, speaking under standard ground rules of anonymity for discussing diplomatic matters.

“We believe cooperation on missile defense is in the security interest of both our countries,” the official said. “We are actively seeking cooperation with Russia in bilateral channels and through NATO. Cooperation is the best way to provide Russia transparency and reassurances that missile defense is not a threat to its security.”

Russia had vehemently opposed an antiballistic missile shield proposed under President George W. Bush. In September 2009, Mr. Obama announced a reconfiguration of his predecessor’s proposed antiballistic missile shield in Eastern Europe, one that would focus on short- and medium-range missiles, partly quieting Russian objections.

The administration’s new plan would deploy, in four phases, existing SM-3 interceptors using the sea-based Aegis system and an improved version in 2015 on ships and on land. Rather than the 10 bigger interceptors originally envisioned, there could be 40 to 50 of the smaller missiles on land and more on ships.

Russia revived its objections as Moscow and Washington were negotiating the New Start treaty in 2010. Russia tried, unsuccessfully, to include language in the treaty that would restrict the development of the missile shield.

The United States and NATO maintain that the reconfigured missile-defense system based in Europe could not diminish the deterrent power of Russia’s vast nuclear arsenal, and state that the system of antimissile interceptors and radars is designed to halt missiles from Iran.

Stratfor analyst : The Romanian-Russian relations could «suffer» due to the shield, Serbia would be favoured

May, 9 – The Romanian-Russian relations could « suffer » due to the decision to place in Romania some elements of the anti-missile shield, stated for Mediafax Marko Papic, senior analyst Eurasia with Stratfor who made an analogy with the Russian-Serbian relations, as Serbia would get closer to the NATO. « The relations between Russia and Romania could suffer due to this. For example, the Russian ambassador to the neighbouring country Serbia suggested that any attempt on the part of Belgrade to get closer to the NATO would force Russia to respond and such a move would lead to the deterioration of the relations between the two states. Thus, we suppose that a similar reasoning could be valid for Romania as well, especially we take into consideration Bucharest « willingness to confront Russia, in the case of Moldova» the senior analyst with Stratfor commented for Mediafax.

Papici said «Russia could respond to the challenge by building its own fleet in the Black Sea and by reconsolidating Crimea» He thinks that «Russia could start by improving its relations with Serbia, especially due to the building of the gaspipelines South Stream and bring money in the country, to counterbalance Romania’s decision to strengthen its relations with the west. » From the point of view of advantages and disadvantages brought about by the anti-missile shield on the Romanian territory, they should be dealt with interdepedently, another analysts of Stratfor Nathan Hughues said.

« As a whole, this is a more flexible and adaptable architecture than the system which was used for Poland. Any component would « get » into Romania would be connected and would be part of a system, a bigger one, with multiple radar placed at sea and spread all around several states, as well as interceptors at sea and in several states » the military analyst Nathan Hughes commented for Mediafax.
No country is considered essential, geographically speaking. But, as there are more countries in the region that take part in the system, the more equipment is gathered and the system becomes more complex » Hughes said.

The military analysts said that a more active participation on the part of Romania to the anti-missile shield could strengthen the military relations with the US but at the same time, it could « bring Moscow’s rage ». Romania’s CSAT approved on Tuesday as placement of the anti-missile system the former air base in Deveselu in the Olt county, president Basescu mentioning that the base will be under Romanian command.

Romanian soldier killed in Afghanistan, the Western military alliance says.

The International Security Assistance Force (ISAF) said Tuesday that two of its service members were killed on Monday in southern Afghanistan, Reuters reported (May, 10).

Both were killed by improvised bombs in separate incidents, the coalition added.

The exact location of the incidents and the soldiers' nationalities remain unknown.

However, most of the troops in south Afghanistan are purportedly American.

Also on Tuesday, an improvised bomb killed a NATO-led Romanian soldier in the southern region of Zabul.

28-year-old Catalin-Ionel Marinescu was killed during a patrol in the region, Romania's defense ministry said.

He is the 19th Romanian soldier to die in Afghanistan since 2003, when Bucharest joined the military intervention in that country.

There are a total of 1,770 Romanian troops currently deployed in Afghanistan.