Minister of Foreign Affairs and Trade Péter Szijjártó has announced that Hungary will strengthen its relations with the Republic of Mordovia, as this could mitigate the downturn in economic cooperation between Hungary and Russia.
The Minister of Foreign Affairs and Trade held talks with Vladimir Dimitrijevic Volkov, Head of the Republic of Mordovia in the Russian Federation. After their discussions, the two politicians signed an economic cooperation agreement.
Download
At a press conference following the meeting, Mr. Szijjártó pointed out that Russian Minister of Foreign Affairs Sergey Lavrov visited Budapest last week, and at that time it was also emphasised that economic cooperation between Hungary and Russia has drastically slowed recently, but neither of the countries are to blame for this: developments in the economic and political atmosphere in Europe have had an unfavourable effect on bilateral relations. Last year trade volume between Russia and Hungary fell by 47 per cent, and a further 25 per cent fall was recorded in the first two months of this year, he added.
Mr. Szijjártó said that he has agreed with his Russian counterpart to establish an action plan to first slow down the negative trend, to halt it, and to eventually promote growth. This plan consists of two parts, he explained: to develop regional cooperation, and to promote Hungarian investment in Russia.
Download
Mr. Szijjártó stressed that the Republic of Mordovia has an excellent investment environment, and shared Finno-Ugric roots with Hungary may also support cooperation.
The area which has suffered most from the decline in Hungarian-Russian economic relations is agriculture, but it is also this area which could play a leading role in cooperation between Hungary and the Republic of Mordovia, Mr. Szijjártó explained. He also said that the two economies could cooperate in cattle-breeding technologies, and at an economic forum on Tuesday two inter-company agreements would be signed, according to which operations will start in the Republic of Mordovia for a goose-feather processing company, and a seed maize cultivating company.
Download
He noted that the committee on regional cooperation established by the agreement between the Russian and Hungarian governments will hold its first meeting in Moscow this summer.
Mr. Volkov stressed that the Republic of Mordovia greatly appreciates this cooperation with Hungary.
He said that cooperation between the two nations has historical roots: economic and cultural relations have always been excellent. The two countries also cooperate to preserve the culture of Finno-Ugric nations, he added.
On the subject of economic relations, Mr. Volkov said that the volume of trade in goods may increase when the two aforementioned agreements are implemented. The Republic of Mordovia plays a leading role in the manufacture of agricultural products in Russia, therefore it is interested in Hungarian agricultural technologies, he said, noting that Hungarian companies could also be involved in housing projects.
The Republic of Mordovia is a member of the Russian Federation, with an area of 26,000 square kilometres and approximately 850,000 inhabitants. Its capital, Saransk, is approximately 650 kilometres to the southeast of Moscow.
(Ministry of Foreign Affairs and Trade)
