Opportunities for Strategic Cooperation EU-Russia Anna Brzozowska, EU Delegation in Moscow

Russia – strategic partner - before the crisis… Russia - 3 rd trading partner for EU, with 9.7% of total EU trade, just after USA and China EU 1 st commercial partner for Russia (52.3%) UE-Russia trade doubled from : € 278 billions

Russia – 3 rd trading partner 2008, in billions of euro

2 nd export partner 2008, billions of euro

3rd import partner 2008, billions of euro

Trends EU Russia billions of euro

Trends: EU Trade with Russia (January May 2009)

Crisis  FDI inflows declined 45% (y-o-y) in the first half of 2009 to € 4.1 billion.  Overall foreign investment, including loans and portfolio investment, fell by 30.9% (y-o-y) to € 21.4 billion.  EU accounts for about 75% of foreign investment inflows.

Effects of the crisis  Imports UE from Russia: - 40%;  exports UE -36%  And still…EU remained Russia’s largest trade partner, accounting for 51.7% of Russia’s total trade turnover.

Russian reaction - G20 Declarations - But … increased tariffs, non-tariff measures (SPS) - Calculated cost for EU 400 millions €

Future  Partnership Agreement (1994)  New Agreement will replace it (negotiations)  Relation to WTO accession - almost finalised but timing unsure - New context Customs Union with Belarus and Kazakhstan

Future  Recovery to pre-crisis level in 2-3- years?  President Medvedev’s Modernisation address  EU response – Partnership for Modernisation - Approximation of financial and technical standards - Innovation - WTO accession - Person-to- Person exchanges, visa, work permit

Thank you