Commission staff working document  accompanying the communication from the Commission to the Council - Review of EU-Russia relations  pursuant to conclusions of the Extraordinary European Council of September 1, 2008 {COM(2008) 740 final}
Date: 2008-11-05
Institutions: European Commission
Subjects: EU relations, Russia, cooperation agreement, international security, international trade

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 5.11.2008 
SEC(2008) 2786 

COMMISSION STAFF WORKING DOCUMENT 

accompanying the 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL 

Review of EU-Russia relations 

 pursuant to conclusions of the Extraordinary European Council of September 1, 2008 

{COM(2008) 740 final} 

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TABLE OF CONTENTS 

INTRODUCTION/BASIS OF RELATIONSHIP ..................................................................... 3 

CURRENT AREAS OF BILATERAL COOPERATION......................................................... 4 

Economic and trade relations ..................................................................................................... 4 

Context ...................................................................................................................................... 4 

Co-operation ............................................................................................................................. 5 

Energy  ...................................................................................................................................... 7 

Kaliningrad ............................................................................................................................... 7 

Political dialogue, common space on external security ............................................................. 8 

Justice, Freedom, Security ......................................................................................................... 8 

Research, Education, Culture ................................................................................................... 10 

FINANCIAL CO-OPERATION.............................................................................................. 12 

FUTURE AREAS OF BILATERAL COOPERATION.......................................................... 13 

New Agreement ...................................................................................................................... 13 

Perspective of a free trade area............................................................................................. 13 

Justice, Freedom, Security..................................................................................................... 14 

Research, Education, Culture ............................................................................................... 15 

COOPERATION IN INTERNATIONAL ORGANISATIONS AND IN REGIONAL 

ORGANISATIONS AND INITIATIVES ................................................................. 16 

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INTRODUCTION/BASIS OF RELATIONSHIP 

1. 

2. 

3. 

4. 

5. 

6. 

The  Extraordinary  European  Council  of  September  1,  2008,  requested  the  Council, 
with  the  Commission,  to  conduct  a  careful,  in-depth  examination  of  the  various 
aspects of EU-Russia relations. This review is to be conducted in the run-up to the 
EU-Russia  Summit  scheduled  for  14  November  2008,  with  the  GAERC  of  13-14 
October 2008, having taken stock of developments in the Georgian-Russian conflict. 

The EU/Russia Partnership and Cooperation Agreement (PCA), the current legal 
basis for EU-Russia relations was negotiated in 1992-1994 and entered into force on 
1 December 1997. Pursuant to Article 106, the PCA is concluded for an initial period 
of 10 years and is ‘automatically renewed year by year provided that neither Party 
gives  the  other  Party  notice  of  denunciation  of  the  Agreement  at  least  six  months 
before it expires’. At the Sochi Summit in May 2006, the EU and Russia agreed that 
the PCA would remain valid until a New Agreement enters into force. 

The PCA sets out the main values on which the relationship is based, notably respect 
for democratic principles and human rights, the commitment to promote international 
peace and security, the principles of market economy and sustainable development.  

The  PCA  economic  provisions  secured  a  number  of  key  WTO  principles  and 
commitments  before  the  expected  accession  of  Russia  to  the  WTO  including  the 
most  favoured  nation  clause.  Further,  it  establishes  provisions  for  trade  in  goods, 
conditions  for  business  and  establishment,  trade  in  services  and  in  more  specific 
areas. It also contains provisions on economic cooperation in a number of sectors. It 
provides  in  much  less  detail  for  cooperation  on  prevention  of  illegal  activities, 
cultural cooperation and financial cooperation. It sets up an institutional framework 
based  on  the  Cooperation  Council  and  Cooperation  Committee,  establishes  a 
Parliamentary  Cooperation  Committee  and  contains  a  dispute  settlement  procedure 
based on non-binding conciliation.  

The  provisions  of  the  PCA  have  been  developed  in  two  ways.  First,  in  2003  the 
Cooperation  Council  was  strengthened  and  renamed  Permanent  Partnership 
Council (PPC), allowing Ministers to meet in all necessary formats, not just Foreign 
Ministers.  Second,  in  May  2005  the  EU  and  Russia  agreed  the  road  maps  of  the 
Common Economic Space, the Common Space of Freedom, Security and Justice, the 
Space  of  Co-operation  in  the  field  External  Security,  as  well  as  the  Space  of 
Research and Education, including Cultural Aspects. They lay down a detailed set of 
objectives and a work plan for the short and medium term future. Sectoral dialogues 
have  been  set  up  to  oversee  the  implementation  of  the  road  maps  in  the  different 
common  spaces.  Energy  is  covered  briefly  in  the  PCA  and  cooperation  has  been 
developed through the Common Economic Space, the Energy Dialogue and the PPC 
framework.  

The  institutional  framework  works  generally  well;  however,  problems  concern 
meetings  at  Senior  Official  level.  The  Cooperation  Committee  has  not  met  since 
October 2004 despite numerous requests from the Commission. The Committee has 
thus  been  unable  to  fulfil  its  task  of  monitoring  the  overall  implementation  of  the 
PCA  and  prepare  the  meetings  of  the  Cooperation  Council  (now  PPC  in  Foreign 
Ministers’ format). Almost all the sub-committees are also inoperative. 

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CURRENT AREAS OF BILATERAL COOPERATION 

Economic and trade relations  

Context 

7. 

8. 

9. 

10. 

11. 

The EU and Russia are important trade partners. Russia ranks third among the 
EU's  trading  partners,  after  the  USA  and  China.  The  EU  is  by  far  Russia's  main 
trading partner, accounting for more than 50 % of its overall trade. EU bilateral trade 
with Russia is on a fast growing trend, with nominal growth rates of about 20 % but 
due to stagnating imports of mineral fuels last year, the 2007 figures for the overall 
trade increased only by 9.1% in 2007. The figures for the first seven months of 2008 
show  that  strong  growth  in  bilateral  trade  is  continuing  this  year.  Total  trade  with 
Russia amounted to €232 billion in 2007 (c ompared with €130 billion in 2004). For 
the first seven months of 2008, total trade amounts to €165.3 billion, which is €36.5 
billion more than the level reached in the first seven months of 2007 (€128.8 billion). 
EU  exports  to  Russia  are  diversified.  They  included  machinery  and  transport 
equipment  (39%),  chemicals  (13%),  manufactured  goods  classified  chiefly  by 
material  (11%),  food  and  live  animals  (6%).  Russia  exports  to  the  EU  mainly 
energy/mineral  fuels  (65.7%).  2007  saw  rapid  growth  rates  up  to  28%  in  services 
exports  and  7%  in  imports  (mainly  transportation  and  travel  services).  EU  industry 
established  on  the  Russian  market  is,  from  a  general  perspective,  satisfied  with  the 
market  conditions,  but  regularly  highlight  a  number  of  structural  issues  (i.e.  poor 
administrative capacity, corruption, etc.) and specific trade problems. 

Russia is included in the list of beneficiary countries of the Generalised System of 
Preferences (GSP) for the period to 2011. The volume of Russian exports benefiting 
from the GSP is marginal, amounting to 1.59% of total Russian exports to the EU in 
2007.  

The Agreement on trade in steel and steel products is in force since October 2007. 
In line with the provisions of the agreement, the Russian side has requested certain 
changes  to  it  which  are  currently  under  consideration.  The  agreement  contains 
specific  provisions  on  export  duties  in  steel  scrap  which  may  be  affected  by  a 
possible increase of these export duties. However, no formal decision has been taken 
so far on the Russian side.  

80% of all cumulative investments in Russia were made by EU Member States, even 
if  some  of  these  investments  are  Russian  re-investments.  A  significant  part  of  all 
Russian  investments  abroad  are  located  within  the  EU.  EU  foreign  investment  into 
Russia in 2007 was almost ten times higher than the amount invested in China, but 
just 15% of the amount invested in the US. Continued high investment levels have 
taken  place  despite  the  obstacles  posed  by  a  complex  regulatory  environment, 
applied  in  an  inconsistent  manner.  There  is  also  ample  evidence  of  a  substantial 
in  economic  reform,  accompanied  by  a  re-emergence  of  State 
slowdown 
intervention. 

The  Russian  stock  markets  have  performed  poorly  in  2008,  similarly  to  other 
emerging and developed stock markets. The Russian RTS and MICEX indexes have 
seen dramatic falls since May (from a high of close to 2500 in mid-May to a low of 
791  on  13  October).  This  is  related  to  the  ongoing  worldwide  financial  instability, 
nevertheless,  there  are  also  Russian-specific  components  in  this  performance  (the 
Georgia  conflict;  TNK-BP,  the  recent  fall  in  oil  prices).  Stock  market  analysts 
acknowledge  that  the  risks  of  investing  in  Russia  are  at  a  high  level  now.  Experts 

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believe that the financial instability could worsen the terms of borrowing abroad for 
large  Russian  companies.  However,  macroeconomic  indicators  remain  broadly 
sound,  with  growth  forecast  by  the  Commission  close  to  8%  this  year,  while  CPI 
inflation  has  increased  (reaching  14.7%  y-o-y  by  August)  following  a  worldwide 
trend of higher prices. A very significant share of the €450 billion foreign exchange 
reserves  of  Russia  are  in  euros,  making  Russia  one  of  the  largest  holders  of  euro-
denominated assets in the planet. 

Co-operation 

12. 

13. 

14. 

15. 

1 

Based  on  the  provisions  of  the  PCA,  the  Common  Economic  Space  aims  at 
furthering the integration of EU and Russian economies through enhanced economic 
cooperation and the convergence of regulatory environments. The implementation of 
the  Common  Economic  Space  has  led  to  the  establishment  of  some  17  sectoral 
dialogues1  conducive  to a  better  understanding  of  the  respective  EU  and  Russian 
regulatory environments and closer contacts between administrations and a range of 
different  stakeholders  on  both  sides. The  day  to  day  business  of  these  dialogues  is 
conducted  relatively  efficiently,  and  although  concrete  results  are  limited,  the 
cooperative  atmosphere  which  has  developed  should  contribute  to  the  achievement 
of our objectives in the negotiation of the New Agreement. Some progress has been 
made  on  regulatory  convergence but  much  remains  to  be  done  and  some  important 
points  agreed  in  principle  are  yet  to  be  implemented  in  practice  (e.g.  Siberian 
overflights, Energy Early Warning Mechanism). 

Preparations  are  on  going  on  a  new  dialogue  on  public  health.  Russia  is  keen  on 
this, primarily because of its recent emphasis on modernising its social services using 
its  newly-created  wealth  while  facing  ever-more  gloomy  statistics  on  the  state  of 
health of average Russians. The EU interest principally lies in the prevention of the 
spread  of  communicable  diseases  and  engaging  Russian  in  a  constructive  area  for 
cooperation.  

The large volume of cross-border trade has produced its own problems. On customs, 
the  EU  and  Russia  have  been  working  on  the  implementation  of  a  joint  strategy  to 
overcome the queues towards Russia at its land borders with the EU. While there has 
been  substantial  progress  on  the  implementation  of  a  pilot  project  for  exchange  of 
pre-arrival customs information (to be operational as of 1/1/2009), Russian customs 
reforms  have  been  implemented  at  a  slower  pace  than  expected.  The  impact  of  the 
pilot  project  on  traffic  flows  will  be  carefully  monitored  and  the  strategy  will  be 
assessed in due time. It should be noted that despite keen interest, no similar project 
has  yet  been  launched  with  other  neighbouring  countries,  reflecting  Russia’s 
positioning as a major destination of EU trade. 

Both sides acknowledge that co-operation in the transport sector has great potential, 
especially in air and maritime safety or regarding interconnection of transport routes 
along  the  Northern  Axis,  but  the  problems  over  Siberian  Overflights  have  been  a 
severe  obstacle.  An  agreement  was  reached  in  2006  but  Russian  signature  and 
implementation are still awaited. The agreement aims to put an end to a practice of 
charging  for  flying  over  Siberia,  which  is  not  in  line  with  basic  principles  of 

Transport;  Industrial  and  Enterprise  Policy ;  Regulatory  dialogue  on  enterprise  policy ;  Space ; 
services ;  Energy ; 
Information  Society ;  Agriculture ;  Macro-economic  policy ;  Financial 
Procurement ;  Environment ;  Trade  facilitation ;  IPR ;  Investment ;  Fisheries;  Regional  co-operation ; 
Statistics. 

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16. 

17. 

18. 

international  aviation  and  the  Chicago  Convention,  to  which  Russia  is  a  signatory. 
The  EU  aviation  industry  paid  about  350  million  EUR  in  2007  and  it  seems  likely 
that they will soon start paying again to obtain new overflight rights. This would de 
facto  acknowledge  the  postponement  of  the  agreement  in  line  with  Russian 
statements  linking  its  signature  to  the  completion  of  WTO  accession  negotiations. 
With the growing uncertainty regarding the date for the latter, accompanied by recent 
statements  by  the  Russian  Government  that  it  would  be  revisiting  certain  bilateral 
agreements, alternative measures are being discussed. 

There are concerns about many of Russia’s regulations and procedures with regard to 
meeting international standards and which are sometimes applied in an inconsistent 
manner.  In  the  sanitary  and  phytosanitary  field,  this  has  caused  problems  for  a 
number  of  Member  States  (bans  on  exports  of  Polish  meat  and  plant  products). 
Russia  covers  approximately  one  third  of  its  demand  for  raw  and  processed 
agricultural  products  by  imports  and  aims  at  reducing  this  share  in  favour  of 
domestic producers. Russia is also the second largest destination for EU agricultural 
exports.  A  series  of  disproportionate  Russian  trade  restrictions  justified  by  their 
domestic SPS standards has led the Commission, in close consultation with Member 
States,  to  negotiate  a  number  of  Memoranda  of  Understanding  in  this  field2  These 
commit EU industry to follow Russian requirements to avoid further trade disruption, 
while  at  the  same  time  establishing  consultation  mechanisms  for  situations  where 
such  issues  arise  and  provide  for  opening  discussions  on  the  scientific  rationale  of 
Russian standards. The MoUs also represent a unified and coherent EU approach in 
view of Russian attempts to open bilateral negotiations. Furthermore the Commission 
agreed 14 veterinary certificates for export of animal products to Russia and agreed 
with Russia on the principles of regionalisation. Russia has not wished to enter into 
negotiations  on  a  formal  Veterinary  Agreement  as  foreseen  under  the  Common 
Economic  Space.  In  the  WTO  context,  Russia  has  agreed  to  bring  its  rules  in  line 
with the SPS Agreement on accession.  

A  Fisheries  Agreement  covering  the  Baltic  Sea  has  been  concluded  and  is  under 
ratification  on  the  Russian  side,  after  already  having  been  adopted  by  the  EU. 
Beyond  this  Agreement,  an  MoU  launching  a  high-level  dialogue  in  the  fisheries 
sector  was  signed  in  April,  2008.  In  the  past  two  years,  Russia-EU  dialogue  in 
various multilateral and bilateral fora on fisheries matters in the North Atlantic has 
evolved  and  yielded  positive  results  in  particular  in  the  context  of  the  fight  against 
illegal, unreported and unregulated fishing. 

In the area of the environment, there is a specific dialogue on environmental issues, 
with  expert  groups  covering  forestry,  climate  change,  biodiversity,  convergence  of 
environmental  policies  and  water/marine  issues.  The  EU  engages  with  Russia  on 
climate change in order to secure Russia’s support for a global and comprehensive 
post-2012 agreement. The EU’s climate cooperation with Russia includes adaptation 
and  efforts  to  limit  greenhouse  gas  emissions  through  energy  efficiency,  and  gas 
flaring,  as  well  as  work  with  the  private  sector,  and  industry.  The  EU  continues  to 
promote Russia’s implementation of the Kyoto Protocol and its flexible mechanisms, 
in particular Joint Implementation projects.  

2 

Veterinary  MoU  (Sept  2004)  including  rules  on  transit  via  EU  territory,  MoU  on  phytosanitary 
certification  (2005),  MoU  on  pesticide  residues,  nitrates  and  nitrites  in  plant  products  for  human 
consumption (March 2008), MoU on conditions for deliveries of meat and raw meat products to the RF 
(March 2008). 

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Energy 

19. 

20. 

21. 

22. 

The EU and Russia have a long tradition of active cooperation in the energy sector. 
Both  Russia  and  the  EU  benefit  from  this  situation.  EU  companies  have  made 
considerable  investments  in  the  Russian  energy  sector  while  Russian  energy 
companies are increasingly investing in the EU.  

The  Russian  Federation  is  the  EU’s  most  important  single  supplier  of  energy 
products.  Over  a  quarter  of  gas  and  oil  consumed  in  the  EU  originates  in  Russia. 
The EU is the most important market for Russia energy exports and generates a 
significant  part  of  its  export  revenues.  The  EU  will  need  to  import  an  increasing 
share of its energy resources over the next 20-30 years and a significant part of that 
increase  might  come  from  Russia.  While  Russia  has  been  a  reliable  supplier  of 
energy  products  to  the  EU  for  decades,  disputes  with  transit  states  as  well  as 
insufficient  upstream  investment  and  ageing  pipeline  infrastructure  raise  concerns 
about  future  supply.  The  EU  has  raised  on  a  number  of  occasions  the  issue  of 
interrupted oil flows through the branch of the Druzhba pipeline going to Lithuania. 
On  policy,  Russia  has  signalled  that  it  has  no  fundamental  disagreements  with  the 
Energy Charter Treaty, but that it would stick to its position of not ratifying the ECT 
and  its  Transit  Protocol.  Inadequate  investment  in  the  energy  sector,  expanding 
domestic  demand  and  low  energy  efficiency  in  Russia  as  well  as  increased 
competition  for  Central  Asian  and  Caspian  gas,  present  potential  risks  to  future 
energy supply in Russia itself as well as in consumer countries. 

The EU has actively enhanced dialogue and cooperation under the Energy Dialogue 
on  issues  such  as  energy  efficiency  and  conservation,  but  also  on  questions  of 
transparency,  market  developments  and  the  investment  climate  in  Russia.  The 
Commission  is  committed  to  make  the  EU-Russia  Early  Warning  Mechanism  on 
supplies of gas and oil fully operational and to link it with similar mechanisms to be 
established  with  transit  countries.  The  ongoing  liberalisation  of  the  EU  energy 
market and the development of a common external dimension of EU energy policy 
also have an impact on the EU-Russia bilateral energy cooperation. 

Russia  is  set  to  remain  a  strong  energy  power.  Though  both  sides  are  engaged  in 
diversification  policies,  the  EU’s  dependence  on  Russia  as  a  supplier  will  remain 
strong and might be a source of concern. Interdependence is a core element of the 
relationship.  However,  the  interpretation  of  reciprocity  which  should  characterise 
interdependence  differs  widely.  The  EU  aims  to  establish  a  true  level  playing  field 
(i.e. transparency, non-discrimination, reciprocity of market access, transit rights and 
third  party  access,  long  term  predictability  and  a  competitive  environment)  in  the 
face  of  continued  difficulties  that  foreign  investors  experience  in  accessing  the 
Russian upstream sector as well as structural issues connected to the influence of the 
State in the energy sector.  

Regional Policy/Kaliningrad 

23. 

A  Memorandum  of  Understanding  has  been  signed  on  cooperation  on  the  area  of 
regional  policy.  It  created  the  basis  for  structured  dialogue  on  regional  policy 
including  issues  such  as  ways  to  promote  the  development  of  disadvantaged  areas, 
preparation of regional development strategies, exchange of experience in support of 
innovation-driven  regional  development,  improving  cross-border  cooperation  and 
support  to  facilitate  co-operation  between  Russia  and  EU  regions.  The  socio-
economic  development  of  Kaliningrad  has  been  a  priority  for  the  Russian 
Federation  and  the  EU  since  1991.  The  region  stands  to  benefit  from  the  recently-

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approved Cross-Border Co-operation programmes that receive funding from both the 
EU  and  the  Russian  Federation.  Kaliningrad  has  also  benefited  from  considerable 
investment  by  the  EU  into  border  infrastructure.  Despite  some  initial  concerns,  the 
Facilitated Transit Scheme between the region and the rest of the Russian Federation 
has worked positively.  

Political dialogue, Common Space on External Security  

24. 

25. 

26. 

27. 

Regular political dialogue is a feature of the EU-Russia partnership. This dialogue is 
frequent and takes place at multiple levels. It includes: twice-yearly Summits; regular 
meetings of Foreign Ministers; monthly PSC Troika meetings with Russia, Political 
Directors meetings, as well as working level contacts.  

These contacts are a way of developing a better understanding of respective positions 
on international issues. While co-operation on the Middle East Peace Process and on 
non-proliferation, notably with reference to Iran, has seen some aligning of positions, 
on other issues, positions remain farther apart. This has been the case on Kosovo, and 
in the common neighbourhood. Russia’s commitment to effective multilateralism has 
been put into question by the events in Georgia. 

Twice-yearly  human  rights  consultations  have  been  held  since  2005.  These 
consultations  provide  an  opportunity  to  discuss  areas  of  concern  in  Russia  and  the 
EU respectively as well as cooperation in multilateral fora.  

Co-operation on civil protection has been stepped up following new administrative 
arrangements  between  DG  Environment  at  the  European  Commission,  and  the 
Russian Emergency Services Ministry concluded in June 2008.  

Justice, Freedom, Security 

28. 

29. 

30. 

Cooperation  in  Freedom,  Security  and  Justice  is  an  area  where  the  interests  of 
Russia and the EU often coincide. Russia has been willing to engage in this sector, 
even  though  some  gap  exists  between  declarations  and  expressions  of  intent  and 
reality on the ground. Regular bi-annual meetings of the PPC have provided a useful 
mechanism to give guidance to the expert level work. A challenge remains to ensure 
that issues related to human rights, democracy and the rule of law are to be taken by 
Russia  as  part  of  this  Common  Space,  in  particular  in  the  context  of  the  visa 
dialogue.  

The  EC-Russia  Agreements  on  Visa  Facilitation  and  Readmission  entered  into 
force  on  1  June  2007.  The  EU  objective  has  been  to  ensure  full,  correct  and 
harmonized implementation of both agreements in parallel. With regard to the Visa 
Facilitation  Agreement,  the  EU  has  also  pressed  hard  to  eliminate  the  complicated 
registration procedures in Russia. With regard to readmission, the EU objective has 
been  correct  implementation  of  the  agreement  and  the  swift  signature  of  bilateral 
implementation protocols. 

The continued full implementation of both agreements is in the interest of the EU in 
order  to  ensure  the  EU’s  ability  to  enjoy  facilitated  travel  of  EU  citizens  to  Russia 
and  foster  people-to-people  contacts,  while  enabling  Member  States  to  return 
undesired  aliens  back  to  Russia.3  Russia  accepted  the  Readmission  Agreement  in 
parallel to the Visa Facilitation Agreement, which in turn is largely perceived as the 

3 

During  the  transitional  period  expiring  on  1  June  2010  the  Readmission  Agreement  only  applies  to 
Russian citizens. 

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31. 

32. 

33. 

34. 

35. 

36. 

37. 

required first step towards visa liberalization.4 Furthermore, the correct application of 
the  Readmission  Agreement  is  for  the  EU  one  of  the  conditions  for  the  successful 
visa liberalisation dialogue. 

On  the  basis  of  the  2006  terms  of  reference  on  the  establishment  of  operational 
cooperation, FRONTEX and Russia’s Border Guard Service have agreed on a joint 
cooperation  plan  for  2007-2010.  The  plan  enables  possible  joint  operations  to  take 
place  between  FRONTEX  and  Russia.  Further cooperation between the agencies is 
undoubtedly in the interest of both sides. 

Changes  in  Russian  legislation  in  October  2007  have  resulted  in  complications  for 
EU  citizens  to  regularize  their  longer-term  stay  in  Russia  (i.e.  stays  of  more  than 
three months, not covered by the Visa Facilitation Agreement). EU businesses have 
also  complained  about  the  procedures  and  rules  pertaining  to  work  permits.  The 
Russian  administration  has  been  open  to  working  with  the  EU  in  looking  for 
solutions to the problems that have emerged.  

The EU’s objective is to ensure that EU citizens are able to comply with the existing 
rules and regulations. Member States have sought to present a common EU position 
on  this  issue  rather  than  making  bilateral  arrangements  with  Russia.  However,  it 
should be noted that the equivalent rules on admission for the purpose of carrying out 
a paid activity in the EU are not fully harmonised yet. 

With  respect  to  asylum  there  has  been  an  improvement  of  the  situation  in  Russia 
over the last years. This is notably the case for access to asylum procedures and for 
documentation of refugees and asylum seekers. UNHCR and the Russian authorities 
agree on the need to have a new refugee law in place, and there are also other areas 
in which improvements are required.  

However,  it  should  be  noted  that  many  asylum  seekers  in  the  EU  originate  from 
Russia. For the years 2005, 2006 and 2007 Russia ranked second among countries of 
origin of asylum seekers in the EU.  

A  Memorandum  of  Understanding  between  the  European  Monitoring  Centre  on 
Drugs  and  Drugs  Addiction  and  the  Russian  Federal  Drugs  Control  Service  was 
signed  in  2007.  The  MoU  facilitates  exchanges  of  information  between  the  two 
agencies.  Cooperation  in  this  field  is  in  the  interest  of  both  sides.  Combating  drug 
trafficking  is  high  on  the  Russian  agenda,  particularly  as  regards  precursors, 
synthetic drugs and heroin coming from Afghanistan. 

Cooperation  between  Europol  and  Russian  law  enforcement  authorities  has  been 
based  on  the  existing  strategic  cooperation  agreement  which  covers  such  fields  as 
illegal 
laundering, 
counterfeiting  currencies  and  documents,  and  drugs.  Increased  and  intensified  law 
enforcement cooperation is beneficial for both sides.  

in  human  beings,  money 

immigration  and 

trafficking 

38. 

The  border  agreement  between  Russia  and  Estonia  has  been  signed  but  Russia's 
ratification is pending. The border agreement between Russia and Latvia was ratified 

4 

It  should  be  noted  that  the  EC-Russia  Visa  Facilitation  Agreement  has  created  an  imbalance  of 
treatment between the citizens of Georgia holding Georgian passports and the Russian passport holders 
in  South  Ossetia  and  Abkhazia  and  Georgian  citizens,  and  may  indeed  have  created  an  incentive  to 
acquire Russian citizenship. On 25 September 2008, the Commission recommended to the Council the 
negotiation  of a  Visa Facilitation Agreement  with Georgia  that would  provide  equivalent  facilitations 
for Georgian citizens. Commission services are currently assessing the consequences of the situation. 

EN 

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in 2007. Russia's border agreement with Lithuania has been ratified, but the border is 
not yet properly demarcated. It remains in the interest of the EU to continue to seek 
Russian  confirmation  and  ratification  of  the  border  agreement  with  Estonia  and 
demarcation of all EU-Russia common borders according to international standards 
so as to ensure legal certainty of EU’s external border.  

Co-operation with Russia in the fight against terrorism is based on the 2002 Joint 
Statement on Counter-terrorism and the relevant provisions of the road maps for the 
Common Spaces of Freedom, Security and Justice and of External Security.  

Russia has proposed an MoU on the fight against terrorism to take into account new 
fields of cooperation which are not currently covered by the Joint Statement and the 
Common Spaces (e.g. terrorist recruitment and radicalization), but the EU remains to 
be  convinced  about  the  added  value  of  an  MoU.  Informal  information  meetings 
concerning critical infrastructure protection have been held in 2007-2008. 

The EU wants efficient, concrete and fruitful co-operation with Russia in the field of 
counter-terrorism in full respect of the principles of human rights and the rule of law. 
The  implementation  of  the  provisions  in  the  Common  Spaces  should  remain  the 
framework for cooperation.  

39. 

40. 

41. 

Research, Education, Culture 

42. 

43. 

44. 

45. 

Cooperation in the field of research, education and culture is an area characterised by 
strong mutual interests. Russia has been very keen to engage in research cooperation 
which  it  sees  it  as  a  prime  example  of  a  “well  balanced  cooperation”  where  a 
common strategic viewpoint prevails.  

Research  cooperation  is  governed  by  the  EC-Russia  Science  and  Technology 
Cooperation  agreement.  This  agreement  (in  force  since  2004)  expires  in  2009. 
Renewal  is  under  preparation  and  requires  a  formal  decision  of  the  Council  with 
consultation  of  the  European  Parliament.  The  following  are  ongoing  or  planned: 
regular  meetings  of  the  Joint  EC-Russia  Steering  Committee;  meetings  of  FP7 
National Contact Points; participation of Russian Federation entities in FP7; setting-
up  and  organisation  of  meetings  of  joint  EC-Russia  thematic  research  working 
groups. 

Entities  from  the  Russian  Federation  participate  in  all  thematic  areas  and  sub-
programmes of the FP7. Since Russia enjoys the status of an ICPC (i.e. International 
Cooperation Partner Country), its entities are eligible for funding and  are receiving 
funding  in  most  cases  to  support  their  participation.  Until  now  218  Russian 
Federation  participants  have  been  selected  in  FP7  projects,  with  a  requested 
Community contribution of some € 29 million .  

The  EC  &  Euratom  FP7  Work  Programmes  for  2009  foresee  several  coordinated 
calls  with  Russia.  A  similar  such  coordinated  call  is  under  discussion  for  the  WP 
2010 in the area of Aeronautics research. The EU and Russia have effectively started 
synchronizing their research programmes with a view to defining a more ambitious 
research agenda. These co-funded activities are in line with the overall trend and the 
changing attitude towards international co-operation, which is increasingly based on 
equal sharing of funds and responsibilities.  

46. 

Cooperation with Russia further includes the Agreement for cooperation between 
the  European  Atomic  Energy  Community  (Euratom)  and  the  Russian 
Federation in the field of nuclear safety. This agreement concluded in 2002 for an 

EN 

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initial  period  of  10  years  stipulates  the  cooperation  in  all  areas  relating  to  nuclear 
safety  (radiation  protection,  nuclear  waste  management  etc),  including  research  on 
reactor  security.  Furthermore,  the  Agreement  for  cooperation  between  the 
European Atomic Energy Community (Euratom) and the Russian Federation in 
the field of controlled nuclear fusion (ITER) was concluded in 2002 for an initial 
period of 10 years.  

Russia  is  a  recipient  party  of  the  International  Science  and  Technology  Centre 
(ISTC), which  is  an intergovernmental organization  established in 1992 through an 
agreement  signed  by  the  European  Community  and  the  European  Atomic  Energy 
Community  (acting  as  one  party),  the  USA,  Canada,  Japan,  and  the  Russian 
Federation. The ISTC has provided an important means to channel funding to former 
defence  institutes  to  research  and  provided  alternative  livelihoods  for  weapons 
scientists.  Nearly  30  000  former  weapon  scientists  and  engineers  from  the  Russian 
Federation and other CIS countries have been involved in some 2600 projects during 
the past 14 years.  

However,  the  Russian  Parliament  has  never  ratified  the  agreement  establishing  the 
ISTC  and  the  Russian  authorities  consider  that  the  ISTC  has  fulfilled  its  non-
proliferation  task.  Today  the  ISTC  essentially  acts  as  a  match-making  and 
implementing  agency  of  research  projects.  In  2009,  the  EC  financial  contribution 
through the Instrument for Stability has been reduced to 5 million EUR.  

Cooperation  in  the  field  of  education  has  allowed  for  increasing  contacts  between 
students and teachers in the EU and Russia. Russia is fully committed to the goal of 
the European Higher Education Area in line with the Bologna process. Co-operation 
centres  on  Russia’s  participation  in  EC-funded  Tempus  and  Erasmus  Mundus 
programmes as well as the Jean Monnet Programme. 

Russia  has  been  participating  in  the  Tempus  programme  since  1994.  Russian 
universities  have  shown  high 
the  Erasmus  Mundus  External 
Cooperation  Window  programme  focussing  on  academic  and  student  mobility  at 
undergraduate,  postgraduate,  PhD  and  post-PhD  level.  In  2008,  Russia’s  allocation 
translated  into  at  least  570  scholarships  and  three  new  partnerships  of  EU-Russia 
universities. 

interest 

in 

A particularly important project is the European Studies Institute (ESI) in Moscow. 
The project is co-financed by Russia and the EC, which is supporting it through a 3 
million EUR grant. As one of the few institutions with the competence and capacity 
to provide a one-year postgraduate Master’s programme in EU studies, the Institute 
aims  mainly  at  developing  a  cadre  of  officials  conversant  in  EU  issues.  Yet  the 
purpose of the Institute is much wider: to foster the involvement of a broad range of 
audiences in a wide-ranging debate on EU-Russia relations.  

An  evaluation  is  ongoing  and  it  will  determine  the  extent  to  which  the  ESI  has 
achieved  its  initial  ambitions.  One  of  the  problems  is  that  the  ESI  targets  solely 
officials and it has not been able to reach out to cities other than Moscow.  

Cultural  cooperation  has  had  a  promising  start  with  the  Kajaani  process 
launched in 2006 culminating with the Culture PPC in October 2007.  

The  EU-Russia  joint  working  group  on  culture  was  established  in  February  2007 
with the aim to draw up a Culture Action Plan focusing on the promotion of artistic 
and  cultural  projects,  cooperation  between  cultural  institutions  and  at  UNESCO  as 
well  as  convergence  with  European  standards  in  the  broadcasting  field.  While  a 

47. 

48. 

49. 

50. 

51. 

52. 

53. 

54. 

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11 

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number  of  cultural  project  initiatives  have  taken  place  with  the  support  of  EC 
assistance,  not  much  progress  has  taken  place  on  the  Culture  Action  Plan;  in 
addition, Russia has not yet ratified the UNESCO Convention on cultural diversity. 

FINANCIAL CO-OPERATION 

55. 

56. 

57. 

58. 

59. 

60. 

Russia  receives  assistance  from  a  range  instruments  including  the  European 
Neighbourhood  and  Partnership  Instrument  (ENPI),  European  Instrument  for 
Democracy  and  Human  Rights  (EIDHR),  Instrument  for  Nuclear  Safety  and 
Cooperation  (INSC)  as  well  as  the  Instrument  for  Stability  (IfS)  and  humanitarian 
assistance.  While  ENPI  Cross  Border  Cooperation  is  as  an  area  of  strong  mutual 
interests,  cooperation  in  other  domains  has  become  increasingly  difficult  due  to 
Russia’s request for reciprocity. Russia’s ambition to become a new ODA provider 
of assistance further calls for a re-think of EU-Russia financial cooperation. 

Ongoing  projects  are  financed  through  TACIS,  EIDHR,  IfS  and  ECHO.  Some 
programmes  included  in  the  ENPI  Interregional  Programme  such  as  TAIEX, 
Erasmus  Mundus  and  Tempus  are  already  been  implemented.  There  are  currently 
approximately 270 ongoing projects worth 170 million EUR. 

Bilateral ENPI financial cooperation is aimed at supporting the implementation of 
the  road  maps  of  the  Four  Common  Spaces  and  the  Kaliningrad  region.  The 
indicative budget for the period 2007- 2010 is 120 million EUR. Problems arise in 
financial cooperation due to the Russian authorities’ request to be “treated as equals”, 
i.e.  Russia  wishes  to  fund  cooperation  actions  in  Member  States  and  wants  these 
actions  to  enjoy  the  same  privileges  that  Community  programmes  benefit  from  in 
Russia. The current arrangements under the ENPI do not cover this.  

There is a shift towards a programme structure similar to those run in industrialised 
countries  with  a  strong  emphasis  on  education  and  civil  society.  Russia  receives 
funding from the ENPI Interregional Programme for the Erasmus Mundus External 
Cooperation  Window,  funding  academic  staff  and  student  exchanges.  The 
allocations for Russia were € 5 million in 2007, € 12 million in 2008 and € 8 million 
are planned for 2009. Russia participates to the Tempus programme for cooperation 
in  higher  education.  It  received  €  1 6.7  million  in  2007  and  €  13  million  in  2008. 
Furthermore,  support  for  civil  society  worth  5  million  EUR  is  planned  under  the 
ENPI bilateral programme. 

Agreement on the seven ENPI Cross Border Cooperation programmes reached at 
the June EU-Russia summit is a real milestone in EU-Russia financial cooperation. 
Russia  pledged  to  contribute  with  122  million  EUR  over  the  period  2007-2013. 
Together  with  EC  funding  (307  million  EUR)  and  Member  States  funding,  these 
resources will promote sustainable economic and social development in border areas, 
environment, public health and prevention and fight of organised crime, efficient and 
secure borders and “people-to-people” contacts. These programmes stretching From 
the Kolarctic region to the Black Sea will start to be implemented in early 2009.  

In  addition  to  past  TACIS  cooperation  worth  approximately  500  million  EUR, 
Russia could benefit from support to nuclear safety through the INSC. A programme 
worth 28 million EUR is awaiting Russian approval. As in the case of ENPI bilateral 
cooperation,  Russia  has  requested  a  redefinition  of  the  cooperation  framework.  In 
2008, a preliminary programme worth 17 million EUR is under discussion.  

EN 

12 

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61. 

62. 

63. 

Under the European Instrument for Democracy and Human Rights (EIDHR), the 
EU  has  supported  a  wide  range  of  projects  by  local  civil  society  in  the  fields  of 
human rights and democratisation. Since its launch in Russia in 1997, the EIDHR has 
supported over 250 projects. Between 2002 and 2007, over 6 million EUR have been 
granted  to  NGOs.  A  further  1.2  million  EUR  have  been  allocated  under  the  2008 
budget. These projects, which do not require endorsement by the beneficiary country, 
have been placed under increased scrutiny from the Russian authorities.  

The  implementation  of  projects  in  the  North  Caucasus  has  become  increasingly 
difficult.  A  special  programme  under  TACIS  focusing  on  health,  education  and 
economic  recovery  is  still  ongoing  but  no  new  initiatives  are  foreseen.  In  addition, 
Russia benefits from a € 11 million humanitarian aid package for the North Caucasus 
approved in June 2008. This package aims to improve the humanitarian situation of 
the victims of the conflict in Chechnya.  

The EIB mandate for Russia, Eastern Europe and the Southern Caucasus is worth € 
3.7  billion.  There  are  now  nine  Russia  projects  worth  €  2  bill ion  in  lending  from 
EBRD/EIB  in  the  joint  pipeline.  The  projects  have  a  total  project  value  of  €5.9 
billion and include the financing of PPP projects in St. Petersburg and Moscow. The 
collaboration  between  the  EIB  and  EBRD  has  developed  in  a  very  successful  way 
with a strong focus on Russia.  

FUTURE AREAS OF BILATERAL COOPERATION  

New Agreement 

64. 

The  EU  expects  the  New  EU-Russia  Agreement  to  provide  for  a  comprehensive 
legally  binding  framework  to  cover  all  main  areas  of  the  relationship  based  on 
international  commitments  which  the  EU  and  Russia  have  entered  into.  The 
agreement  should  provide  substantive  commitments  on  all  main  issues.  It  should 
contain  a  substantial  section  on  energy,  including  nuclear  energy,  enshrining  the 
principles  of  the  Energy  Charter  Treaty.  It  should  set  out  the  objectives  and 
principles of a free trade agreement, to be negotiated once Russia has completed its 
WTO  accession  negotiations.  Furthermore,  the  agreement  should  also  cover  the 
possible  association  of  Russia  to  the  EU’s  7th  Framework  Programme  in  Research 
and  Development  and  its  successors.  Other  specific  agreements  could  be  provided 
for, based on the provisions of the New Agreement.  

65. 

The opening round of the negotiations on the New Agreement took place in Brussels 
on 4th July 2008. Following the Russia-Georgia conflict which broke on 7th August 
2008, the European Council postponed the negotiations. 

Perspective of a free trade area 

66. 

An  EU-Russia  Free  Trade  Area  (FTA)  agreement  would  be  a  key  building  block 
towards  a  deeper  economic  integration  between  the  EU  and  Russia  on  the  basis  of 
shared  rules  and  a  level  playing  field.  Given  the  ever  growing  economic 
interdependence,  such  a  deep  and  comprehensive  FTA  is  in  the  mutual  interest  of 
Russia  and  the  EU.  This  would  provide  for  the  necessary  legal  basis  to  render 
effective markets openings leading to increased trade and investment flows. It would 
also  provide  for  stronger  rights  and  obligations  by  defining  legally  binding 
commitments  which  can  be  enforced  through  a  dispute  settlement  mechanism.  An 
EU-Russia FTA agreement would require further negotiating directives, and should 

EN 

13 

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67. 

build  on  Russia’s  WTO  membership.  Several  meetings  on  exploratory  talks  on  the 
perspective of an FTA have taken place. 

Russia has expressed a strong interest in maintaining or even increasing its already 
important  market  share  in  the  EU  uranium  enrichment  and  nuclear  fuel  supply 
market, though the Russian market for the EU industry remains closed. On the basis 
of the mandate issued by the Council in 2003, technical consultations have been held 
with the Russian Federation, though formal talks have not taken place. Provided the 
context  of  increasing  cooperation  continues  related  to  the  objectives  of  safety, 
security  and  non-proliferation  and  Russia’s  ambitious  plans  to  develop  its  nuclear 
generating  capacities,  a  new  comprehensive  agreement  on  peaceful  uses  of  nuclear 
energy could be considered for future discussions in the framework of pursuit of the 
negotiations on the New EU/Russia Agreement.  

Justice, Freedom, Security 

68. 

69. 

70. 

71. 

72. 

73. 

74. 

The  EU  and  Russia  have  agreed  to  examine  the  conditions  for  visa-free  travel  as  a 
long-term  perspective  in  the  context  of  EU-Russia  Visa  Dialogue.  The  possible 
content  of  discussions  on  external  relations  aspects  in  the  block  IV  has  been 
extensively discussed with the Member States. The EU has proposed a wider agenda 
including issues related to freedom of movement and non-discrimination.  

Both  sides  would  benefit  from  increased  travel  and  new  possibilities  of  people-to-
people  contacts  at  all  levels.  The  EU  has  sought  the  right  balance  between  this 
aspiration  and  its  legitimate  security  concerns.  Russia  and  the  EU  also  differ  with 
regard to the timetable for visa-free, and the prerequisites needed to get to this point. 

Furthermore,  as  recommended  in  the  Communication  on  Applying  the  Global 
Approach to Migration to the Eastern and South-Eastern Regions Neighbouring the 
European Union5, the implementation of other points covered by the Road Map for 
the  Common  Space  should  be  intensified,  in  particular  regarding  migration 
management, fight against illegal migration and cooperation on asylum issues. 

Europol  is  evaluating  Russia's  legislation  implementing  Council  of  Europe  1981 
Convention on the Automatic Processing of Personal Data. Satisfactory progress is a 
prerequisite  for  a  possible  Operational  Agreement  between  Russia  and  Europol, 
which  would  allow  exchange  of  personal  data.  The  Council  awaits  Europol's 
proposal on the start of the negotiations. 

Such an agreement would be in the interest of both sides since concrete cooperation 
among  law  enforcement  officials  is  fruitful  only  in  so  far  as  the  cooperation  can 
address specific criminal operators and operations. However, the EU must not allow 
data exchanges on individuals if full assurances are not received with regard to the 
protection of personal data.  

Eurojust  and  the  Russian  Prosecutor’s  Office  have  been  engaged  in  talks  on  a 
Cooperation Agreement. The date for the next meeting has not been set so far. The 
further  advancement  of  Eurojust-Russia  cooperation  is  preconditioned  on  the 
fulfilment of adequate protection of personal data.  

Informal  consultations  have  been  underway  between  Russia  and  the  Commission 
with regard to the feasibility and possible scope of a bilateral agreement on judicial 
cooperation in civil and commercial matters. Enhanced cooperation in this field is 

5 

COM (2007) 247 

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14 

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75. 

76. 

77. 

important  for  both  sides.  A  bilateral  agreement  between  the  EU  and  Russia  in 
appropriate  cases  could  replace  numerous  existing  bilateral  agreements  between 
certain  EU  Member  States  and  Russia.  The  EU  objective  is  to  ensure  that  Russia 
engages in proper cooperation at the multilateral level by acceding to, and effectively 
implementing,  multilateral  conventions  (in  particular  the  Hague  Conventions),  in 
addition to a strengthened cooperation via a possible EU-Russia bilateral agreement 
that could cover areas not falling under those multilateral instruments. 

EU-Russia co-operation in the field of criminal law has been accentuated by several 
high-profile  cases  and  numerous  practical  problems  faced  by  Member  States. 
Increased cooperation is in the interest of both sides but is hampered by the need to 
ascertain  to  a  satisfactory  degree  the  free  and  fair  functioning  of  the  Russian 
judiciary before any extradition can take place. 

Cybercrime is a challenging new field of cooperation where enhanced cooperation 
would  be  in  the  interest  of  both  sides,  but  particularly  for  the  EU  which  needs 
Russia's  assistance  in  closing  down  illegal  websites  based  in  Russia.  Initial 
discussions  have  been  conducted  concerning  a  possible  high-level  EU-Russia 
conference.  The  challenge  for  the  EU  is  to  ensure  that  co-operation  on  the  fight 
against cybercrime is not used as a means of further curtailing freedom of expression 
in Russia. As regards the use of Internet for terrorist purposes, cooperation should be 
based on the Council of Europe Convention on the prevention of terrorism. 

The  EU  is  a  major  producer  of  amphetamine-based  drugs  in  the  world.  Russia  is  a 
key  source  for  precursors  used  for  the  illicit  manufacturing  of  these  drugs.  The 
mandate of a new EU-Russia agreement covers the area of drug precursors control, 
however a specific mandate is required to set up the detailed rules for cooperation in 
this area building upon the relevant international instruments6. A possible agreement 
with Russia on the control of drug precursors would provide a firm legal ground 
for cooperation in the fight against illicit drugs. Negotiations for an agreement with 
Russia  on  the  control  of  drug  precursors  should  be  launched  soon  in  the 
framework of the negotiation for the New EU/Russia Agreement, in order to provide 
a  firm  legal  ground  for  cooperation  in  the  fight  against  illicit  drugs.  Closer  co-
operation  with  Russia  is  also  instrumental  in  controlling  drug  trafficking  from 
Central Asia. 

Research, Education, Culture 

78. 

79. 

80. 

6 

Russia  on  10  April  2008  formally  expressed  its  interest  to  become  an  associate 
member of the EU’s 7th Framework Programme in Research and Development. 
At the PPC on Research on 26 May, the EU committed to take all the necessary steps 
to examine Russia’s request and "expressed the hope that a satisfactory outcome will 
be achieved as soon as possible". A second meeting to prepare the association was 
envisaged for 24-25 September but has been postponed.  
The Association of Russia to 7th FP could be negotiated within the framework of the 
New Agreement. The association would put the EU-Russia research cooperation on a 
new, higher level. 38 countries, including the EU 27, participate in the 7th FP.  

Russian entities would enjoy the same rights and obligations in terms of participation 
and  funding  as  entities  from  the  EU.  Russia  representatives  would  be  allowed  to 

Article  12  of  the  1988  United  Nations  Convention  against  illicit  traffic  in  narcotic  drugs  and 
psychotropic substances 

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15 

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participate  as  observers  in  FP7  related  management  committees  and  bodies  which 
would  facilitate  convergence  towards  a  common  research  agenda  including  EU 
priorities, e.g. climate change.  

COOPERATION  IN  INTERNATIONAL  ORGANISATIONS  AND  IN  REGIONAL 

ORGANISATIONS AND INITIATIVES  

81. 

82. 

83. 

84. 

85. 

86. 

WTO accession: The negotiations started nearly 13 years ago and made considerable 
progress over the past two years. However, a limited but important list of unresolved 
issues  remains  to  be  solved.  Furthermore,  the  process  has  been  now  caught  in  a 
complex situation. There is a growing “negotiating” fatigue in Russia and support for 
an  early  accession  seems  to  decrease.  The  overall  political  context  has  further 
complicated  the  ongoing  process,  including  regarding  some  other  trading  partners. 
The conclusion of the WTO accession will require full co-operation and engagement 
between  Russia  and  all  concerned,  which  seems  to  be  particularly  difficult  at  this 
moment.  However, it  is repeatedly underlined that it would be in the interest of all 
trading partners to have Russia join the multilateral institution. The EU and Russia 
concluded a bilateral market access agreement in 2004. 

Remaining  outstanding  issues  concern  export  duties  (in  particular  for  wood), 
discriminatory  railway  fees  and  SPS  measures.  In  addition,  there  are  a  number  of 
other  remaining  issues  which  require  further  discussion.  On  the  multilateral  side, 
there  are  still  a  number  of  unresolved  issues  with  various  WTO  members.  These 
include issues such as agriculture, state trading enterprises and SPS. 

For Russia, WTO membership would anchor the economic reform and create a more 
stable  and  predictable  business  environment,  which  would  encourage  further 
investments. It would in turn contribute to greater diversification and modernization 
of  Russia's  economy  leading  to  sustainable  growth.  For  the  EU,  it  would  integrate 
Russia into the international rules-based trade system. 

Russian  accession  to  the  OECD  is  under  negotiation  and  is  in  the  interest  of  both 
sides  to  address  the  many  global  challenges  that  affect  our  societies  and  to  further 
integrate Russia into the world economy. Key accession criteria notably include the 
respect  for  the  values  of  like-mindedness,  respect  of  the  rule  of  law  –  including 
international  law  –  and  good  governance.  Therefore,  Russia’s  accession  to  OECD 
will need to be coordinated with the process of Russia’s accession to the WTO. 

Relations in the Council of Europe have become increasingly tense in the last two 
years  over  human  rights  issues,  and  more  specifically  about  the  non-ratification  of 
Protocol 6 to the ECHR7 (abolition of the death penalty), of Protocol 14 (reform of 
the  Court),  as  well  as  ECHR  rulings  against  Russia  considered  as  politicized 
(Chechen cases, Iliascu case) and therefore not accepted. Recently events in Georgia 
have  cast  a  further  shadow  over  cooperation  between  the  EU  and  Russia  in  the 
context of both the OSCE and the Council of Europe. 

There  has  been  a  growing  tendency  for  Russia  to  block  consensus  in  the  OSCE, 
notably as regards draft Ministerial Statements supposed to set a broad course for the 
organisation.  The  main  topic  overshadowing  activities  in  the  politico-military 
dimension remains Russia’s suspension of the CFE-Treaty (Conventional Forces in 
Europe).  In  the  human  dimension,  Russia  has  repeatedly  attacked  the  autonomy  of 

7 

ECHR: European Convention on Human Rights 

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16 

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87. 

88. 

89. 

90. 

91. 

ODIHR,  sought  to  undermine  its  electoral  observation  and  challenged  the  role  of 
NGOs. Russia has launched some bold attempts to reform the OSCE and pushed for 
the  adoption  of  a  “Charter”  setting  out  OSCE  “basic  goals,  principles  and 
commitments”.  

The  EU  and  Russia  cooperate  and  interact  at  a  regional  level.  It  is  in  the  EU’s 
interest to safeguard existing regional cooperation frameworks in order to be able to 
tackle  concrete  regional  and  local  challenges  but  also  in  order  to  maintain  well-
functioning  cooperation  formats  which  ensure  the  continuation  of  a  dialogue. 
Regional cooperation may also pave the way for the Russian regional and municipal 
actors to engage better and directly with EU counterparts.  

The revised Northern Dimension Policy transformed the Northern Dimension into a 
genuinely  common  policy  between  its  four  partners.  There  has  been  a  renewed 
Russian  interest  to  engage  and  support  the  further  advancement  of  the  Northern 
Dimension which has been welcomed by the EU.  

There  is  scope  for  including  Arctic  issues  in  the  regular  dialogue  between  the  EU 
and  Russia  both  bilaterally  and  in  the  Arctic  Council.  In  the  framework  of 
international cooperation under its new Integrated Maritime Policy, the EU has an 
interest  to  establish  a  regular  high-level  dialogue  with  Russia  to  discuss  the 
sustainable  management  of  maritime  resources  and  Law  of  the  Sea  matters  in  the 
Arctic and other maritime areas of a common interest.  

With  regard  to  the  Council  of  Baltic  Sea  States,  the  EU  and  Russia  will  need  to 
cooperate in order to reform the organization on the basis of the decisions reached at 
the June 2008 Baltic Summit.  

Preparations are currently underway in the Commission to prepare an EU Strategy 
for  the  Baltic  Sea  Region,  which  will  be  adopted  during  the  Swedish  EU 
Presidency. While the strategy will be an internal EU strategy it is clear that certain 
external aspects will require further consultations with Russia. The European Council 
conclusions  of  December  2007  referred  to  the  Northern  Dimension  as  the  most 
appropriate forum for these discussions to take place. It will be in the interest of the 
EU  to  ensure  that  Russia  is  committed  to  the  implementation  of  certain  external 
aspects  of  the  strategy  (notably  environment)  without  the  EU  being  pushed  to 
negotiate  the  internal  aspects  of  the  strategy  (most  notably  the  acquis  and  internal 
market) with any third countries. Russia desires that the strategy will enhance EU’s 
ability to coordinate internally and that the strategy does not jeopardize the existing 
mechanisms under ND and CBSS. 

EN 

17 

   EN