News

29 June 2004 15:02

ON ALLOCATION BY AUSTRALIA OF FUNDS TO IMPLEMENT G8 GLOBAL PARTNERSHIP PROJECTS

1489-29-06-2004

Unofficial translation from Russian

PRESS RELEASE

At the recent Sea Island summit, the G8 leaders welcomed the fact that Australia and a number of other countries had joined as donors the Global Partnership, established in 2002 at the G-8 summit in Kananaskis, Canada. The government of Australia has taken a decision to allocate even in 2004 10 million Australian dollars to carry out Global Partnership projects in the Russian Federation involving the disposition of decommissioned Pacific Fleet nuclear submarines.

In order to speed up the putting of these funds to use, Australia will channel them via the Russian-Japanese Agreement in force since 1993 on cooperation to assist with the liquidation of nuclear weapons to be reduced in the Russian Federation. Under this Agreement a joint project with Japan is being carried out for the disposition of one such nuclear submarine in Russia's far east.

On June 24 a decision of the Board of the Russian-Japanese Cooperation Committee - the joint executing agency for the 1993 Agreement - was signed in Moscow, by which a special escrow account of the secretariat of the Committee will be opened to which Australia will transfer the allocated funds. Minister for Foreign Affairs of Japan Yoriko Kawaguchi took part in the signing ceremony. Now specific projects are to be agreed upon, to which the Australian assistance will be directed.

Thus, a step of no small importance has been taken towards the practical implementation of the obligations of Australia under the Global Partnership. One should especially note that Canberra supports a top-priority area of this initiative, disposition of the nuclear submarines. We believe all this will serve as a good example for the other donor countries that have joined the Global Partnership recently as concerns a prompt switching of political accords onto lines of practical cooperation.

June 29, 2004

Bilateral relations

Russia-Australia relations

Russia and Australia established diplomatic relations on October 10, 1942.

They maintain regular political relations. The President of Russia met with the prime ministers of Australia during the APEC Leaders’ Week in Honolulu (November 12, 2011), the G20 Summit at Los Cabos (June 19, 2012) and the APEC Leaders’ Week in Beijing (November 12, 2014). Vladimir Putin had a meeting with the incumbent Prime Minister of Australia, Malcolm Turnbull, on the sidelines of the G20 summits in Antalya (November 15, 2015) and Hangzhou (September 5, 2016), as well as during the APEC Leaders’ Week in Lima (November 20, 2016).

On January 31, 2012, Foreign Minister Sergey Lavrov made a working visit to Australia. His agenda included the signing of a plan of consultations between the foreign ministries of Russia and Australia for 2012-2013 and an intergovernmental memorandum on cooperation in Antarctica. On September 3, 2013, Sergey Lavrov had a meeting with Foreign Minister Robert Carr in Moscow. On September 25, 2013, Sergey Lavrov held talks with the appointed Foreign Minister of Australia, Julie Bishop, in New York.

On April 6, 2012, Speaker of the House of Representatives of the Australian Federal Parliament Peter Slipper visited Russia, where he had a meeting with State Duma Speaker Sergey Naryshkin. Senate President John Hogg made an official visit to Russia between July 11-12, 2013 at the invitation of Federation Council Speaker Valentina Matviyenko.

The Seventh State Duma has a group of deputies for ties with the Australian Federal Parliament. It is chaired by Nikolay Lyubimov. The Australian parliament currently has no group for friendship with Russia.

Australia adopted financial sanctions and a ban on visits by certain citizens of Russia and Ukraine over the Ukrainian crisis and Crimea’s reunification with Russia. It also prohibited the export of military items and goods and services related to oil exploration and production to Russia, denied access to the Australian capital market for Russian state banks, and also sanctioned commercial projects with Crimea. On September 3, 2014, Prime Minister Tony Abbott announced sanctions preventing the further export of uranium to Russia.

In response, the President of Russia signed executive order On Special Economic Measures to Protect the Russian Federation’s Security on August 6, 2014, which banned the import to Russia of particular kinds of agricultural produce, raw materials and foodstuffs originating in the United States, the EU, Canada, Norway and Australia. Restrictions were also imposed on the entry of certain Australian citizens to Russia.

Legal framework: Russian-Australian relations are based on intergovernmental agreements, including a double taxation agreement (2000), an agreement on cooperation in the exploration and use of outer space for peaceful purposes (2001), and an agreement on cooperation in the use of nuclear energy for peaceful purposes (became effective in 2010).

Trade and economic ties: In 2016, Russian-Australian trade amounted to $532.4 million, a decrease of 22.2 percent compared to 2015. Russian exports were estimated at $64.5 million (down 37.1 percent), and imports stood at $467.9 million (down 19.6 percent). Russia mostly supplied timber and pulp and paper items (44.5 percent of total exports to Australia), chemical products (19.2 percent), metals and metalware (10.9 percent), machinery, equipment and transport vehicles (9.8 percent), as well as mineral products (8.6 percent). Australia delivered chemical products (68.9 percent), foodstuffs and agricultural raw materials (18 percent), as well as machinery, equipment and transport vehicles (10 percent).

Several large Russian companies are working in Australia, including Rusal ($401million in investment), Nitro Sibir and Kaspersky Lab.

In 2005, aluminium producer Rusal made its first major investments in Australia by buying a 20 percent stake in the world’s third largest alumina producer, Queensland Alumina Ltd, for $401 million. The transaction was the largest Russian investment in Australia. Alumina from the Australian plant is delivered to Rusal via the port of Vanino in the Russian Far East. The plant’s annual capacity is 4 million tonnes of alumina, out of which 674,000 tonnes are delivered to Rusal.

Between 2014-2015, Norilsk Nickel, which has invested $33 million in the exploration project at the Honeymoon Well deposit in Western Australia, sold its production assets but retained the development licence for the deposit.

Between 2015-2016, Atomredmetzoloto (ARMZ) and the Magnitogorsk Iron & Steel Works (MMK) sold their Australian assets.

The Australian companies on the Russian market include mining companies BHP Billiton, Rio Tinto and Tigers Realm Coal, WorleyParsons, which is involved in engineering and projects management of the Sakhalin-1 and Sakhalin-2 oil and gas projects in Russia, and Orica, which provides commercial explosives and blasting systems to the mining, quarrying, oil and gas as well as construction markets.

Tigers Realm Coal (TIG) and its Russian subsidiary Northern Pacific Coal Company are developing the Amaam coking coal deposit in the Chukotka Autonomous Area. TIG’s current beneficial ownership of Amaam is 40 percent (with a possibility to increase it by another 40 percent) and it also owns 80 percent in Amaam North.

During the St Petersburg International Economic Forum in June 2015, the Russian group of companies PhosAgro and Australia’s Orica signed a 10-year contract worth 12.5 billion roubles for drilling and blasting works in the open-cut sites of PhosAgro subsidiary Apatit, and an agreement on the supply of emulsion explosives for underground mining. This is PhosAgro’s third agreement with Orica. Under it, the Australian company will be directly involved in blasthole drilling without resorting to the services of subcontractors.

The Kaspersky Lab is also active in Australia.

The Australia-Russia Business Council, which was formed in 1984 under the title of Australia-USSR Business Council, is promoting the development of direct partner ties between Russian and Australian companies.

Cooperation in science and technology is carried out by the Russian Academy of Sciences primarily through direct ties between the two countries’ research centres. Scholarships are allocated every year for training Australian professionals at Russian universities. Relations between universities are the predominant form of cooperation in this area.

There are sustainable positive dynamics in the area of bilateral cultural exchanges (tours by performance groups, conferences and exhibitions). In 2015, Australia hosted an exhibition titled Masterpieces from the Hermitage: The Legacy of Catherine the Great and recitals by Russian violinist Maxim Vengerov. In 2016, the Imperial Russian Ballet Company, the Russian National Ballet Theatre and the St Petersburg Ballet Theatre toured Australia, which also hosted the 13th Russian Resurrection Film Festival. Russian performers Andrey Gugnin and Arseny Tarasevich-Nikolaev (runner-up) won the Sydney International Piano Competition of Australia.

Some 60 Australian athletes performed at the 22nd Olympic Winter Games in Sochi, where they won two silver medals (freestyle and snowboard) and one bronze medal (freestyle). Russian athletes take part in the annual Australian Open Tennis Championships in Melbourne. In 2017, the Australian football team took part in the FIFA Confederations Cup in Russia.

Australia

Australia

General information: The Commonwealth of Australia comprises the mainland of the Australian continent, the island of Tasmania and numerous smaller islands in the Indian and Pacific oceans.

Area: Around 7.7 million square kilometres.

Population: 25.6 million (2020), most of whom are the descendants of settlers from Britain and Ireland, as well as immigrants from other countries. Indigenous Australians number about 700,000. Australia’s urban population accounts for over 90 percent of the total.

Capital: Canberra (population 418,000). Other large cities are Sydney (5 million), Melbourne (4.9 million), Brisbane (2.4 million), Perth (2 million), Adelaide (1.31 million), Hobart (247,000) and Darwin (158,000).

Political system: Australia is a federal parliamentary constitutional monarchy. The head of state, Queen Elizabeth II of Great Britain, who is represented in Australia by Governor-General (since July 2019, this post has been held by General the Honourable David Hurley).

Administrative divisions: Australia has six states: New South Wales (NSW), Queensland (QLD), South Australia (SA), Tasmania (TAS), Victoria (VIC) and Western Australia (WA), and two major mainland territories: the Australian Capital Territory (ACT) and the Northern Territory (NT). Each state and major mainland territory has its own parliament and government.

Supreme legislative authority: The bicameral Federal Parliament consists of two houses: Senate and House of Representatives. The latter has the key law-making power; its 151 members are elected for three years by universal, secret ballot). The current Speaker of the House of Representatives is the Hon. Tony Smith. The upper house, Senate, comprises 76 Senators who normally serve fixed six-year terms, unless the Senate is dissolved earlier in a double dissolution. Following a double dissolution half the state senators serve slightly less than three years, with the rest serving three years longer. The current President of the Senate is the Hon. Scott Ryan.

Executive authority: The Australian Cabinet is formed by the parliamentary majority party or coalition. The current Cabinet consists of Prime Minister Scott Morrison (since August 2018), Deputy Prime Minister Michael McCormack, Minister of Foreign Affairs Marise Payne, Minister for Defence Peter Dutton, and Minister for Trade, Tourism and Investment Dan Tehan.

Main political parties: The Liberal Party (led by Scott Morrison), the Australian Labour Party (Anthony Albanese) and the National Party of Australia (Michael McCormack). A number of minority parties represented in parliament include the Australian Greens, the Centre Alliance, Katter’s Australian Party, etc.

Religion: Christians (Protestant, Catholic, etc.) make up over 70 percent of the Australian population.

Official language: English.

National holidays: Australia Day is marked on January 26, when the first European settlement was established in Australia in 1788.

Other national holidays are New Year’s Day (January 1), Easter (four days in March or April), Anzac[1] Day (major military commemoration held on April 25), Queen’s Birthday (celebrated on the second Monday in June; in Western Australia it is celebrated on the last Monday in September), Christmas Day (December 25) and Boxing Day (December 26).

Currency: Australian Dollar (AUD, currently worth some $0.75).

Armed Forces: The Australian Defence Force (ADF) is a contractual force that numbers some 58,000 personnel, including about 17,000 reservists. Australia’s defence budget for 2020-2021 was approved at $32,5 billion. The current Chief of the Defence Force (CDF) is General Angus Campbell.

History: It is assumed that the Aboriginal people migrated to Australia from Southeast Asia between 42,000 and 48,000 years ago.

In 1606, Dutch navigator Willem Janszoon landed in north-western Australia, which was later named New Holland. In 1770, British navigator James Cook sailed along and mapped the east coast, which he named New South Wales and claimed for Great Britain. The loss of American colonies led to the establishment of a new penal colony in Australia. On January 26, 1788, Captain Arthur Phillip established a camp at Port Jackson (subsequently renamed Sydney) in New South Wales. Between 1855 and 1890, six British colonies were granted the right to self-government as dominions of the British Empire.

On January 1, 1901, the former colonies formed an independent federative state, the Commonwealth of Australia (a dominion of the British Empire). The Federal Capital Territory (later renamed the Australian Capital Territory) was formed in 1911 as the location for the future federal capital of Canberra (Melbourne was the temporary seat of government from 1901 to 1927).

Australia joined World War I on the side of the Entente.

In accordance with the Statute of Westminster, which was adopted in Britain in 1931 and approved in Australia in 1942, Australia became fully independent of Britain.

Australia entered WWII on the side of Britain. Following the attack on Pearl Harbour, Australia also declared war on Japan.

WWII strengthened ties between Australia and the United States. They formalised their relations by signing the Australia, New Zealand, United States Security Treaty (ANZUS Treaty) in 1951.

After WWII Australia encouraged immigration from mainland Europe. Since the 1970s, immigration from the developing countries was also promoted, which ultimately made Australia a multicultural society.

The Australian government is encouraging stronger ties with Asian-Pacific countries and sees the country’s future as an integral part of the region.

Economy: Australia has the world’s 13th highest GDP ($1,32 trillion as of 2020). GDP by sector: services 71 percent, mining 20 percent, manufacturing 7 percent, and agriculture 2 percent. Inflation as of 2020 was 0,75 percent, unemployment 6.6 percent, refinancing rate 0.1 percent and sovereign debt over $500 billion.

The mining, agriculture and manufacturing industries hold the central place in Australia’s economy. Mining is based on a variety of mineral resources, such as coal, gas, uranium and iron ores, polymetals, bauxites, lead, copper, precious metals and diamonds.

Australia’s agriculture is focused on cattle breeding. Australia is the world’s largest producer and provider of quality wool and a leading exporter of meat and dairy products, wheat and sugar.

Machine building (in particular transport machine building), the food and chemical industries and ferrous and non-ferrous metallurgy feature prominently.

Australia’s foreign trade, including services, was estimated at $597 billion in FY 2019-2020. Exports amounted to $378 billion and imports to $219 billion. Australia mostly exports mining and agricultural products. Its imports are dominated by oil and petrochemicals, machinery, equipment and vehicles, consumer goods, chemical products and medicines.

Foreign direct investment in the country (as of 2019) was estimated at $3 trillion. Foreign investors mostly finance the country’s services, real estate and mining.

Domestic policy: Australia’s political system is based on competition between the Labour Party and the Coalition of the Liberal and National parties, which replace each other as parliamentary majority parties with the right to form a government. The Coalition, led by Liberal Party leader Scott Morrison, won the latest general elections on May 18, 2019.

Foreign policy: The United States is a long-time foreign policy ally of Australia, which supports Washington’s main international initiatives. Australia joined the United States in many military conflicts, including on the Korean Peninsula and in Vietnam, Afghanistan and Iraq. The Coalition government is strengthening the military and political alliance with the United States and ties with Japan and South Korea and is promoting cooperation with Indo-Pacific countries, primarily China, Indonesia and India. Working at the UN and G20 is among Australia’s foreign policy priorities. Australia believes that its zone of responsibility incudes the developing countries of the South Pacific, to which it provides considerable assistance.

Research: Australia has a network of research centres, many of which are financed by the government. The largest such centres are the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and Monash University (Melbourne). There are many Nobel Prize winners in the Australian research community. In particular, the Nobel Prize in Physiology or Medicine was awarded to Sir Howard Walter Florey (1945), Sir Frank Macfarlane Burnet (1960), Sir John Carew Eccles (1963), Peter C. Doherty (1996), Barry James Marshall and Robin Warren (2005). Other Australian Nobel Prize laureates are John Warcup Cornforth (Chemistry, 1975), as well as Sir William Henry Bragg and William Lawrence Bragg (Physics, 1915).

Culture: The film industry, theatre and ballet are developing rapidly. There are many museums and art galleries. International cultural festivals are regularly held in Australia’s largest cities, including Sydney, Melbourne, Adelaide and Canberra. Nicole Kidman, Hugh Jackman, Geoffrey Rush and Cate Blanchett are among the world’s biggest film stars. Writers Henry Lawson and Patrick White (Nobel Prize in Literature 1973) and artist George W. Lambert are known internationally.

Education: School attendance is compulsory for children aged between 6 and 15. There are some 40 universities and four institutes.

Media: There are over 500 print media outlets, some 700 state, private and public radio stations and over 100 television networks.

[1]ANZAC is the Australian and New Zealand Army Corps, which took part in the Battle of Gallipoli during WWI.