Minister of Foreign Affairs, Nkosazana Dlamini Zuma has welcomed a decree by the Russian Federation that includes South Africa on the list of developing countries enjoying preferential trade status with the country.

The Decree becomes effective from Tuesday, 1 April 2003.

The decree is a result of the outcomes of the second session of the Joint Inter-Governmental Committee on Trade and Economic Co-operation between the Republic of South Africa and the Russian Federation held in Pretoria in November last year, and which was co-Chaired Dlamini-Zuma and Deputy Prime Minister Valentina Matviyenko.

This decision by the Russian Government creates the necessary prerequisites for further substantial growth in the bilateral trade between the two countries.

In general terms South African exports to the Russian Federation will now enjoy a 25% reduction in import tariffs.

In essence this will open-up the lucrative Russian market to the South African private sector.

The granting of preferential trade status to South Africa provides further impetus to the agreement reached between President Thabo Mbeki and President Vladimir Putin to enhance economic and trade relations between the two countries.