1. Russia-EU Relations Development and perspectives

2. History 1989- Soviet Union- EEC recognition 1992- Delors- need for new establishment 1994- PCA- Partnership and cooperation Agreement (in force since 1997) 1995- EU enlargement- Finland etc. 1999- Cologne- Common strategy on Russia May 2003- St. Petersburg- Four spaces May 2004- EU enlargement- Estonia, Poland, Latvia etc. 2004- European Neighbourhood Policy May 2005- final roadmaps

3. Institutional structure Summit- twice a year Cooperation Council- foreign ministerial level- Permanent Partnership Council Cooperation Commitee- senior official level Sub- Commitee- expert level Parliamentary Cooperation Commitee

4. Four common spaces Based on the PCA Treaties. Intensifïcation of the previous programmes. Common Economic (European) Space Common Space of Freedom, Security and Justice Common Space of Cooperation in the Field of External Security Common Space of Research, Education and Culture

5. Common Economic Space More than 50% of Russian export goes to EU Russia is fifth trading partner of EU (after USA, Switzerland, China and Japan) Main partners- Germany, Netherlands, Italy Total trade (2003) 84 bln. Euro (EU trade deficit 18 bln.) Russian GDP= GDP of Sweden and Finland together (400 bln. Euro) Raw materials and primary products- 79% of Russian export Russian need in investment to the sector EU is the biggest FDI source (Cyprus, Netherlands, Germany, United Kingdom) Total accumulated foreign investment in Russia- 38.5 bln dollars (9,4 last year) Oil from Russia composed 16 % (2002) of the EU consumption Basic facts

6. Russia´s main trading partners Source: BOFIT

7. FDI into Russia Source: BOFIT

8. Common Economic Space Aims of the Programme  Russian WTO accession  Facilitate trade and investment  Regulatory and legislative convergence  Convergence in technical norms etc.  Energy and enviromental questions

9. Common Economic Space EU position  Energy and enviroment  Intellectual Property Rights  Four freedoms  Energy as a part of CES (domestic prices for Russian producers)  Transport- Siberian overflight charges Russian position  Narrower concept  Priority just in separate sectors  Based on investment and cooperation  Long perspective  Partial harmonisation  Energy question separate from other CES agenda Points of Contradiction

10. Common Space of Freedom, Security and Justice Human rights consultations Judicial system improvement Free media Non- visa regime Fight the organized crime Objectives

11. Common Space of Freedom, Security and Justice Russian interests  Russian speaking minorities in Baltic states  Ratification the Convention of Minority Rights  Terrorists extradiction  Visa-free regime  Kaliningrad question EU position (esp. New member states)  Stress on human rights  Border agreements  Historical issues (occupation)  Situation in Chechnya  Readmission Agreement

12. Common Space of Cooperation in the Field of External Security  Intensification of dialogue  Effective multilateralism  Confront new challenges- WMD, terrorism, regional conficts  Cooperation in solving the problems  Stress on the role of UN, OSCE, Council of Europe Objectives

13. Common Space of Cooperation in the Field of External Security  Question of Russian participation in EU decision making  Influence in neighbouring area- Transdniestria, South Caucasus  Presence of Russian „Peacekeeping troops“ in Georgia and Moldova Points of Contradiction

14. Common Space of Research, Education and Culture The least problematic part Supporting the research and mutual understanding TACIS and INTAS Programmes

15. European Neighbourhood Policy Adopted 2004 Programme of relations with „Wider Europe“ Not aimed at EU membership Create instruments for partnership Russia rejected to be included in this programme – Need for special treatment – Equality of partnership

16. Top issues Overall understanding of four spaces (separate or one all) Near- Abroad concept- common neighbours Convergence in Foreign Policy Tariff protection

17. Challenges Vague nature of Spaces Heterogenity vs. homogenity Different understanding of sovereignity Legal approximation- adoption of European law Unsolved questions from the past Question of common values Russian- Belarus close partnership Development in Russia

18. Questions Are the relations bilateral or multilateral? What are the aims? How to handle with the contradictions?

19. Thank you for your attention