Foreign Minister Dr Nkosazana Dlamini Zuma to hold Bilateral Disciussion in Tshwane, (Presidential GuestHouse), 15th July 2005

Tshwane: South African Foreign Minister, Dr Nkosazana Dlamini Zuma will on her return from a three- nation visit on Friday, 15th July 2005, host Russian Minister of Natural Resources, Yuri Petrovich Trutnev for inter - sessional consultations at the Presidential GuestHouse. The Minister of Minerals and Energy, Ms Lindiwe Hendricks will also participate in the consultations as part of growing bilateral co-operation in the field of Minerals and Energy between South Africa and the Russian Federation.

Both Minister Dlamini Zuma and Minister Yuri Petrovich. Trutnev are co- chairs of the Intergovernmental Trade and Economic Committee (ITEC) between South Africa and the Russian Federation.

The Fourth Session of the Inter - Government Committee on Trade and Economic Co-operation(ITEC) between South Africa and the Russian Federation took place in Tshwane from the 17 - 19 November 2004.

ITEC is the most important mechanism regulating bilateral political, trade and economic relations between South Africa and Russia. During the November 2004 consultations in Tshwane, the two - co-chairpersons agreed that a mechanism should be established that would monitor and ensure effective implementation of decisions between sessions of ITEC.

The fields of interest between the two countries which will form part of the consultation are in:

• Minerals and Energy
• Health
• Education
• Trade and Industry and
• Science and Technology

On Monday, 11th July 2005 whilst in Moscow, Minister Dlamini Zuma was awarded by the Russian Federation, the Order of Peter the Great, "for outstanding achievements in her endeavours to strengthen the security, peace and friendship between the peoples of Russia and South Africa and widening mutually beneficial co-operation between the two sovereign states and for her personal input to the development of bilateral relations between Russia and South Africa"

Minister Dlamini Zuma is the second person to be awarded the honour of Peter the Great after Russian President Vladimir Putin.

Economic Bilateral Relations between South Africa and the Russian Federation

The bulk of South Africa's exports to Russia are made up of vehicle engines ( 18.8% of our exports); machines and mechanical appliances (14%); fresh grapes(13.8%); flat - rolled products or iron ( 10%); pears(6.8%) peaches (3.4%) - amounting to almost 70% of our exports to Russia.

Major Imports from Russia

Major imports from Russia accounting for over 65% of our imports is made up of unwrought nickel.

Potential markets include : automotive part and aftermarket parts, oil and gas equipment, agricultural equipment and wines. The Russian Federation adopted a Decree in March 2003 to include South Africa in a list of developing countries that enjoy preferential tariffs and duties with regard to exports to Russia.

Anglo American, Standard Bank, De Beers, JCI, Gencor and EL Bateman have substantial interests in Russia. In addition, SAB Miller has established a brewery in the Kaluga Region, which represented a US$ 100 million investment, and their product, Golden Barrel Beer, is highly successful in the local market.

In March 2004, the Russian company, OAO Norilsk Nickel MMC, bought 98.5 million common shares, or 20% of the South African gold producer Gold Fields Limited for $1,16 billion.Norilsk Nickel is the world's largest producer of the nickel and palladium group of metals accounting for 18% of world nickel production, 13% of cobalt, 3% of copper, over 50% of palladium, 14% of platinum and 15% of likely world gold production. The deal, one of the largest single foreign investments by a Russian company likely signals the start of Norilsk's expansion onto the global gold markets.

Issued by Nomfanelo Kota on 082 459 3787

C/O Department of Foreign Affairs
Private Bag x 152
Pretoria
0001

14th July 2005

Programme for the Working Visit to South Africa by Russian Minister of Natural Resources, his Excellency Yuri Petrovich Trutnev to Co-Chair the Inter - Governmental Trade and Economic Committee (ITEC) Inter - Sessional Consultations on Friday, 15th July 2005

Friday, 15th July 2005

13H00 : Working Lunch hosted by Her Excellency, Dr Nkosazana Dlamini Zuma, Minister of Foreign Affairs of the Republic of South Africa

14h00 : Plenary session of the ITEC Co-Chairpersons (Presidential GuestHouse)

14h30: Media Briefing by the ITEC CO-Chairpersons

Media participating at the Presidential GuestHouse for the Press Briefing will have to arrive at

14h00 for the Media Briefing.

For all media arrangements, please contact Manusha Pillai on 082 389 3587 (Press Cards to be presented on arrival)

Issued by the Department of Foreign Affairs
Private Bag x 152
Pretoria
0001

14th July 2005