EU-Russia relations

It is probably not yet the 'love affair' that has been claimed by EU President Jean-Claude Juncker, but positive signs of engagement have definitely emerged from the recent EU-Russia Summit and other official contracts. Both sides now appear to agree on the need for a roadmap. Significant gaps in the relationship have also been narrowed. This has required "difficult and arduous" negotiations.

There is consensus that special attention has to be given to economic issues, with the final goal being a possible free trade zone, based on a non-discriminatory application of the law, transparency, regulatory simplification, non-discriminatory application of law and good governance. This pragmatic approach has been best defined in the agreed principles pertaining to economic arrangements. Progress has also been made with respect to the regulatory dialogue, on financial issues and on enhanced cooperation with respect to the telecom, transport and energy industries.

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EU and Russia have also agreed to move forward with respect to environmental issues and to enhance dialogue on achieving the Kyoto Protocol benchmarks. Potential areas of cooperation in the space sector have also been identified.

Consideration has also been given to questions of justice and home affairs. The crucial elements of combating terrorism, organised crime and drug trafficking were discussed for identifying common ground. These were sensitive issues and required a delicate approach.

After intensive negotiation it has also been agreed that there will be increase in consultation on human rights and combating terrorism. This is significant given recent difficulties over the handling of the Chechnya problem. Both sides have also expressed their keenness to move ahead with visa and re-admission agreements, despite the fact that such talks promise to be fraught with difficulty, particularly with regard to third countries and the treatment of their nationals on Russian soil. It may be mentioned here that both sides are examining the question of visa-free travel between Russia and the European Union on a long-term basis.

Compared to the thorny issues of human rights, discussion on external relations proved to be agreeable from the start. As expected, both sides underlined their commitment to effective multilateralism, to further development of the United Nations system and enhanced cooperation in the Council of Europe and the OSCE. Combating the proliferation of Weapons of Mass Destruction (WMD) was also given priority. The Kaliningrad issue, the Middle East and Iraq also came up for discussion, with both sides reiterating their positions. All these elements will however need to be dealt with greater care, now that a common European security and foreign policy, has become difficult after the negative votes on the Draft Constitutional Treaty in France and Netherlands.

The social aspects of cooperation, particularly in education, science and technology and cultural exchanges have also received special attention. This was reflected in the ironing out of some of the glitches that had affected the agreement to strengthen collaboration in the science and research fields, in which Russia is already engaged through the Commission's 6th Framework Programme. This was important given the fact that the EU has been stressing for some time its willingness to bring Russia into the Bologna process and to facilitate the recognition of Russian diplomas in all EU Member States.

Increased cooperation has now been agreed in principle for language training and the creation of a Moscow Institute of European Studies, following the Bruges model. This should definitely help in bolstering cooperation. The creation of the Institute for European Studies and an increased focus on language education would facilitate the practical relations between Russia and the EU.

The roadmap and the least common denominators that have been agreed upon are comprehensive and general in nature. Both sides have fortunately also taken the precaution to leave flexibility within the bilateral equation. Russia has taken stock of its relations with Europe based on the 1997 Partnership and Cooperation Agreement (PCA). Since then relations have progressed and the recently concluded roadmap negotiations have reflected these positive changes.

Most analysts believe that the business perspective in EU-Russia relations is finally being approached in a "reassuringly pragmatic view". This is being seen as important given EU's prospective reliance on Russia's natural resources. The recently concluded Summit demonstrated to a large degree the overlap and common interest between the two sides.

Russia, it must be remembered, is in the process of a "huge transition" in terms of its economy. Such a process of change is being monitored very carefully, particularly in Germany which attaches importance to the fact that Russia is Europe's fifth largest trading partner. Europe is hoping that the WTO process for Russia will be used to step up a greater variation of the EU-Russian trade profile. In this context, the EU is already reviewing customs procedures and trying to see how it can be improved on very practical terms.

Similarly, think-tanks in Europe are studying as to how there can be renewal of existing capital stock in the area of investment. They know that the money invested in Russia by Europe till now is comparatively small, but they also agree that there needs to be a movement forward. Investors, they feel, could increase the output of the Russian economy, bring in new technologies, world-class management and team development. In this context, the EU, quite correctly, highlighted their concern about security of law, security of international property rights and sound governance.

During the Summit, the EU Representatives pointed out that 80 percent of all Russian energy exports went to Europe. Apparently, Europe also hinted that such a trend in trade might change given the fact that it could secure its energy needs through a variety of sources well into the future. This was a kind of 'kabuki', given the fact that the EU has invested so much time on an EU-Russia energy dialogue over the last five years. It was probably Europe's way of persuading Russia to move forward on the framework of the Energy Charter Treaty.

Russian businesses are already engaged in a dialogue with European counterparts through its equivalent of the European Roundtable of Industrialists (ERT). There is obviously great interest on both sides. It is also however clear that, at every opportunity, the EU is emphasising the importance of secure property rights. They are also stressing on the fact that all positive legal developments need to be supported by sound economic policies. In this context, the EU has reiterated that more could be done in the Russian banking sector to raise public confidence and mobilise Russian savings for internal investments. They believe that this sector is still very volatile. They feel that both domestic and international investors needed confidence to make positive investment choices.

Both the EU and Russia are looking ahead to 2007 because it will mark the tenth anniversary of the PCA between the two sides. I believe that these latest steps will encourage further cooperation. I also hope that both sides will use their consensus to facilitate a constructive engagement not only in the Middle East but also with regard to nuclear non-proliferation and disarmament.

Muhammad Zamir is a former Secretary and Ambassador -- any response to mzamir@dhaka.net.