Romania and Ukraine to strengthen relations

Jan 15, 2007, 16:25 GMT

Bucharest - The presidents of Romania and Ukraine met at their common border to declare their intent to strengthen bilateral relations, the Romanian news agency Mediafax reported on Monday.

The Romanian President Traian Basescu confirmed his country was interested in Ukraine harmonizing with the European Union and NATO as much as possible and wanted to take on a mediating role.

Bucharest was spending 120 million euros on cooperation with neighbouring countries Ukraine and Moldavia.

The Ukrainian President Viktor Yushchenko said his country was interested in closer economic cooperation with Romania.

The two politicians met to open a new border crossing on the Tisa river near the north-western Romanian city of Sighetul Marmatiei.

Ukraine would be interested in the privatization of a car plant in the southern Romanian city of Craiova and in investing in the gas pipeline Nabucco, said Yushchenko.

The car plant in Craiova has been back in state ownership since the Romanian government bought back shares from the South Korean Daewoo group in August 2006.

Daewoo had retreated from Romania after 12 years due to financial difficulties.

The proposed gas pipeline Nabucco is to run from the Caspian Sea to Western Europe, avoiding Russia.

Currently, companies from Romania, Bulgaria, Hungary and Austria are involved in the project.