Russia-EU: bilateral and global problems

Author: VK

Brussels will host the Russian-EU summit on December 14-15, with the attendance of Russian President Dmitry Medvedev, Foreign Minister Sergey Lavrov, President of the European Council Herman Van Rompuy, President of the European Commission Jose Manuel Barroso and EU High Representative for Foreign Affairs and Security Policy, Catherine Ashton.

Russian representative to the EU Vladimir Chizhov said that there will be two sets of questions for discussions.

Firstly, the global financial-economic recession. “Russia and the European Union have a lot to discuss in this context, including the aftermath of the recent summit of the European Union, where measures for saving the eurozone were discussed. The European Union is de facto the ninth member of the G8, as well as an active participant in the G20. Another global scenario is the results of the conference on the climate held in South Africa,” Chizhov believes.

Secondly, there will be discussions of current international political events. Attendants will be discussing the situation in the Middle East, North Africa and the Balkans, especially Kosovo.

Thirdly, attention will be paid to bilateral Russian-EU relations.

Chizhov announced Russia’s attitude towards key issues of mutual interest.

Russia joining the WTO

Half a year has passed since the previous summit in Nizhny Novgorod, notable for progress achieved. Certainly, the main achievement is conclusion of the talks on Russia’s joining the WTO. A ministerial conference will open simultaneously with the summit in Geneva where a ministerial agreement will be signed on December 16.

Russian membership of the WTO would initiate a new set of aspects in Russian-EU relations. Russian foreign economic activities will develop according to the standards of the WTO. It will simplify cooperation with the European Union, first of all in the sphere of regulating economic disputes. Relations will be regulated in some of the most sensitive aspects: veterinary and phyto-sanitary inspection, car assemblage and use of Trans-Siberian civil airlines. The European Union remains Russia’s largest trading partner, the largest source of foreign investments in the Russian economy and the largest market for Russian investments. The Bank of Russia holds about 40% of its currency reserves in euros.

One of the most significant business problems between Russia and the EU is ratification of the Third Energy Package by some states of the European Union. “The methods used by some states in realizing the third energy package cause problems for Russian energy companies,” Chizhov says.

Crisis of the eurozone

Concerning the problem of the Greek economy, the tourism sector remains almost the only sustainable sphere of economy in the country. There are no talks on unilateral lifting of the visa regime with Greece, because there are no prospects for the country’s leaving the Shengen zone. European states that have not joined the eurozone, including the UK, are worthy partners for Russia, but the connections with them and their economic potential are lower than the eurozone. This is why they do not have a decisive quality in Russian ties with the European Union. The problem of further enlargement of the EU is unclear. Repercussions of the crisis are obvious, as well as various political aspects, such as Turkey, for example.

Lifting the visa regime

Moscow expects the summit to give political approval to a list of steps needed to introduce a visa-free regime between Russia and the EU. Fulfillment of the steps would initiate talks on lifting the visa regime for short-term visits of Russian and EU citizens. Russia and Poland are to sign a visa-free regime between Poland and the Kaliningrad Region on December 14. Chizhov believes that lifting the visa regime is not “an EU gift for Russians” because it is beneficial for both sides. About 2.5 million Russians visit Shengen states annually, compared with 1.5 million visiting Russia from the Shengen zone.

The European Union and Russia are implementing new technologies. One of them is biometric passports. Undoubtedly, implementation of such passports would be useful only if they are connected.

Besides, a new prospect for cooperation has been noted, the migration dialogue. This includes regulation of legal migration and prevention of illegal migration. Russia has shown more readiness to lift the visa regime than EU states, from the political perspective. Nonetheless, back in 2003 a long-term goal to lift the regime was set. The sides have switched the dialogue from the research phase to the stage of decisions. The partners have realized that a fully-fledged framework treaty should be signed to replace the existing deal on partnership and cooperation.