EUROPEAN UNION - RUSSIA RELATIONS IN THE FRAMEWORK OF WTO VIENNA, 3 JULY 2017 EU-RUSSIA RELATIONS ‘RESTRICTIONS AND OPPORTUNITIES’ PROF DR JAAP W. DE ZWAAN EM. PROF EUROPEAN UNION LAW ERASMUS UNIVERSITY ROTTERDAM, AND FORMER LECTOR EUROPEAN INTEGRATION THE HAGUE UNIVERSITY OF APPLIED SCIENCES

CONTENTS EU-RUSSIA RELATIONS: CONTEXT RUSSIA AND WTO PARTNERSHIP AND COOPERATION AGREEMENT 1997 EURASIAN ECONOMIC UNION SANCTIONS EU AND RF (UKRAINE CRISIS) OPPORTUNITIES COOPERATION PER SECTOR PEOPLE TO PEOPLE CONTACTS NEED FOR CLARIFICATION

CONTEXT: EU NEIGHBOURHOOD POLICY

RUSSIA AND WTO RUSSIA IS A MEMBER SINCE AUGUST 2012 FIRST TRADE POLICY REVIEW 2016, PROBLEMS IMPORT SUBSTITUTION POLICY: COMPLIANCE WITH WTO RULES LACK OF TRANSPARENCY IN THE FUNCTIONING OF THE EURASIAN ECONOMIC UNION SUBSIDISING OF THE ENERGY SECTOR DOMINANT ROLE OF STATE OWNED COMPANIES

PARTNERSHIP AND COOPERATON AGREEMENT 1997 FOUR COMMON SPACES ECONOMY EXTERNAL SECURITY FREEDOM, SECURITY AND JUSTICE RESEARCH, EDUCATION AND CULTURE ESI IN MOSCOW (MGIMO) EU STUDY WEEKS

Eurasian Economic Union Entry into force 1 January 2015 5 Member States Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russian Federation Belarus is not a WTO member Objectives Economic Union Internal market Customs Union Cooperation in specific sectors Legal personality

Eurasian Economic Union Article 1 1. The Parties establish the Eurasian Economic Union ensuring free movement of goods, services, capital and labour within its borders, as well as coordinated, agreed or common policy in the economic sectors determined under this Treaty and international treaties within the Union. 2. The Union shall be an international organisation of regional economic integration and shall have international legal personality.

EEU Treaty Article 4 Main Objectives The main objectives of the Union shall be as follows: to create proper conditions for sustainable economic development of the Member States in order to improve the living standards of their population; to seek the creation of a common market for goods, services, capital and labour within the Union; to ensure comprehensive modernisation, cooperation and competitiveness of national economies within the global economy.

EEU Treaty Article 2 (Definitions) ‘Single (common) market’ means a set of economic relations within the Union ensuring the freedom of movement of goods, services, capital and labour.

EEU Treaty Article 2 (Definitions) ‘Customs Union’ means a form of trade and economic integration of the Member States envisaging a common customs territory, within which no customs duties (other duties, taxes and fees having equivalent effect), non-tariff regulatory measures, safeguard, anti-dumping and countervailing measures shall be applied to the mutual trade, while applying the Common Customs Tariff of the EEU and common measures regulating foreign trade with a third party.

ACHIEVEMENTS/DEFICIENCIES EAEU INSTITUTIONAL FRAMEWORK EFFECTIVENESS AND EFFICIENCY SCOPE OF ECONOMIC COOPERATION FREE TRADE AREA CUSTOMS UNION INTERNAL MARKET COOPERATION IN SPECIFIC SECTORS PARTICIPANTS THREE FOUNDING MEMBER STATES AT PRESENT FIVE MEMBER STATES ENLARGEMENT?

EU-RUSSIA COOPERATION OBJECTIVE AFTER 2012 WTO ACCESSION (COMPREHENSIVE) FREE TRADE AGREEMENT OBSTACLES RELATIONSHIP EU-RF-EAEU RESTRICTIVE MEASURES (UKRAINE CRISIS) SANCTIONS EU RETALIATORY MEASURES RF OPTIONS DIALOGUE AND NEGOTIATIONS COOPERATION PER SECTOR PEOPLE TO PEOPLE/CIVIL SOCIETY CONTACTS

EU RESTRICTIVE MEASURES: OVERVIEW DIPLOMATIC MEASURES INDIVIDUAL RESTRICTIVE MEASURES RESTRICTIVE MEASURES (CRIMEA AND SEVASTOPOL) ECONOMIC SANCTIONS (SPECIFIC RUSSIAN SECTORS) ECONOMIC COOPERATION

EU RESTRICTIVE MEASURES: SPECIFICS 1 DIPLOMATIC MEASURES SUSPENSION OF MEETINGS INDIVIDUAL RESTRICTIVE MEASURES ASSET FREEZE AND TRAVEL RESTRICTIONS 150 PEOPLE AND 37 ENTITIES ASSET FREEZE FOR MISAPPROPRIATION UKRAINIAN STATE FUNDS RESTRICTIVE MEASURES IMPORT BAN ON GOODS FROM CRIMEA AND SEVASTOPOL BAN ON INVESTMENTS PROHIBITION TO SUPPLY TOURISM SERVICES IN CRIMEA

EU RESTRICTIVE MEASURES: SPECIFICS 2 ECONOMIC SANCTIONS (SPECIFIC RUSSIAN SECTORS) LIMITATION OF ACCESS TO EU PRIMARY AND SECONDARY CAPITAL MARKETS FOR 5 MAJOR RUSSIAN MAJORITY STATE OWNED FINANCIAL INSTITUTIONS EXPORT AND IMPORT BAN ON TRADE IN ARMS EXPORT BAN FOR DUAL-USE GOODS ACCESS TO CERTAIN SENSITIVE TECHNOLOGIES AND SERVICES ECONOMIC COOPERATION SUSPENSION SIGNATURE NEW FINANCING OPERATIONS EU COORDINATION SUSPENSION FINANCIAL OPERATIONS EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD) REASSESSMENT AND SUSPENSION EU BILATERAL AND REGIONAL COOPERATION PROGRAMMES WITH RUSSIA

RETALIATION MEASURES RUSSIAN FEDERATION (EU, USA, NORWAY, CANADA AND AUSTRALIA) AGRICULTURE AND FOOD PRODUCTS (MEAT, FISH, FRUITS, VEGETABLES AND DIARY PRODUCTS) RESTRICTIONS ON IMPORT

EU AND RF SANCTIONS LOOKED AT IN CONJUNCTION NOT ALL CHANNELS OF TRADE AND COOPERATION ARE BLOCKED

EU-Russia cooperation: cooperation per sector (examples) Energy Agriculture Modernization and efficiency Transport and Infrastructure Environment and Climate Change Justice and Home Affairs Migration and border management International crime/terrorism Public Health

EU-Russia cooperation:‘people to people’ and civil society contacts Education ESI in Moscow (MGIMO) EU Study Weeks Research Culture Tourism

EU-RUSSIA RELATIONS: NEED FOR CLARIFICATION EURASIAN ECONOMIC UNION ACHIEVEMENTS COMPARISON/RELATIONSHIP WITH EU PERSPECTIVE OF A FREE TRADE AREA EU-RF-EAEU EFFECTS AND IMPACT OF THE SANCTIONS (CRISIS IN UKRAINE)