CAPE TOWN, South Africa (AFX) - Visiting Russian President Vladimir Putin agreed Tuesday to boost political and economic links with South Africa and said Russia was eager to catch up in the race for trade and investment in Africa's powerhouse.
Putin, on the first visit by a Russian head of state to South Africa, said at a joint news conference with his President Thabo Mbeki that: "The level of our economic cooperation is totally out of line with the political trust and confidence we've had over recent years," he said.
Mbeki said Russia also agreed to work closely with South Africa when it takes up its two-year seat on the U.N. Security Council next year. And Putin said that the two had discussed what their countries could do toward "the resolution of acute situations in Africa and the rest of the world."
But most of the meeting focused on closer economic and business links, and Putin brought along a heavyweight delegation of business leaders from the mining, banking and oil sectors.
South African exports to Russia totaled $130 million in 2004. It imported just $9 million worth of goods from Russia, mainly nickel. Putin pointed out that South African trade with European countries was as much as $7 billion.
"We have a lot of catching up to do," he said.
Moscow, which used many African countries as pawns against the West during the Cold War era, has lost much influence on the continent to China, which has been active in building relationships and trade and financing infrastructure projects in resource-rich markets.
South African imports from China exceeded $4.4 billion in 2005, compared to $1 billion in exports, government figures show.
Putin said Russia had been preoccupied with its move toward a market economy since the collapse of the Soviet Union and the country had not been ready for full-fledged economic cooperation with partners.
He said that economic growth has averaged 7 percent for the past three to four years and gold and foreign exchange reserves were growing "so fast that I can hardly keep up with them."
"Now the situation has changed dramatically," he said. "Our companies are capable of investing billions of dollars and are seeking ways to make those investments."
One Russian company planned to invest more than $1 billion in the South African manganese ore industry, he said. There were also plans for investment to help South Africa develop electricity and build an aluminum smelter. He said agreement had been reached to supply a Cape Town nuclear power plant with nuclear fuel until 2010.
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