It gives my wife and me great pleasure to bid you welcome to Helsinki. To welcome you not only for the Russian-American summit, but also on a working trip to Finland. We greatly appreciate Helsinki having been chosen as the venue for the summit.

We have been following with great interest the development of reform under your leadership in Russia. Regrettably often, observers in the West have been more inclined to see the problems caused by the process of reform than its great achievements. It has not been easy to steer a great power like Russia onto a new course. Against that background, we can only admire your achievements to date in reforming both your political and your economic system.

The recent changes in the composition of the Russian government demonstrate the unswerving character of your desire for reform. Like the European Union as a whole, Finland supports Russia's development towards more stable democracy, a market economy and the rule of law.

Relations between Finland and Russia were reshaped on a new foundation at the beginning of 1992. Shared European values: democracy, market economy, respect for human rights and in general the principles of the rule of law, became the foundation on which those relations stand. The fundamental principles underpinning our relations also include equitable treatment and respecting the other's views and choices.

The relations that we built on the new foundation have developed favourably. Political interaction between us has been extensive and on a high level. We have been able to discuss many different themes openly.

A good example of the new content of our relations is our cooperation in attempts to resolve the Nagorno-Karabakh crisis. For nearly two years, Finland and Russia co-chaired the Minsk Group that was established to try to deal with the problem. Although the crisis has not yet been defused, I believe that together we have brought a possible solution closer.

We in Finland are devoting special attention to the development of the Baltic Sea region. New cooperation structures, among which the Council of the Baltic Sea States is the most important, have emerged. It is my hope that the work of the Council will gain momentum in the near future.

A positive development of relations between Russia and the Baltic States is of great significance for the stability of the entire Baltic Sea region. What would now be most important, in my view, would be to achieve results in those relations, thereby improving prospects for further positive results. A new atmosphere of cooperation must be created.

All of the countries fringing the Baltic Sea are members of both the OSCE and the Council of Europe. It is my belief that the integration of the Baltic States into European structures would create stability throughout the Baltic Sea region.

As a European Union member, Finland, together with Sweden and the other member states, is striving to strengthen the Union's northern dimension. That also means closer cooperation with Russia. When the partnership agreement between the Union and Russia takes effect in the near future, our next goal will be to go on to free trade. That will still call for a lot of work by both partners.

Membership of the Union has brought new challenges also in the development of bilateral economic cooperation between Finland and Russia. The volume of goods flowing across our common border is growing explosively. An increasing share of the road freight traffic between the Union and Russia is being routed through Finland. Owing to growth in the volume of traffic, there are problems, and solving them will require also an EU input.

Total trade between us grew about twenty per cent last year; export flows in both directions are increasing. Trade between us has more than doubled since 1992. Our next step should be to create a more favourable framework for raising the level of investment within the pattern of our economic cooperation.

To us Finns Russia is a good and close neighbour. Our cultural interaction is a rich component of our general European heritage. The borders between us are being lowered. Growing contacts between our citizens is part of the work of building peace and cooperation for the 21^st century.

I wish to propose a toast to your health, Mr. President and Mrs. Yeltsin, and to the continuing development of relations between our countries.