The European Union and Russia: Close Neighbours, Global Players, Strategic Partners

8/9/2019 The European Union and Russia: Close Neighbours, Global Players, Strategic Partners

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The European Unionand Russia:Close Neighbours, GlobalPlayers, Strategic Partners

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I. Europe and Russa: Budng a Strategc Partnershp 3

II. Trade and Economc Cooperaton 7

III. Energy, Cmate Change and Envronment 10

VI. Freedom, Securty, Justce and Human Rghts 14

V. Foregn Pocy Cooperaton and Externa Securty 16

VI. Research, Educaton and Cuture 18

VII. EU Cooperaton Programmes and Projects 21

VIII. Cooperaton wth Russas Regons 23

Annex Facts and Fgures 26

2

Contents

EurRed

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The Russan Federaton s one o the most mportant partners or the

European Unon. A key prorty o the European Unon s to bud a strong

strategc partnershp wth Russa based on a sod oundaton o mutua

respect. Russa s the argest neghbour o the EU, brought even coser by

the Unons 2004 and 2007 enargements. The 2003 EU Securty Strategy

hghghts Russa as a key payer n geo-potca and securty terms at

both the goba and regona eve. Russa s a key actor n the UN Securty

Counc and, due to hstory, geographc proxmty and cutura nks, s

one o the key payers n the common European neghbourhood. Russas

contrbuton to Europes cutura hertage s an mportant eement o our

common tes. Russa s aso a major supper o energy products to the EU.

Russa s a arge, dynamc market or EU goods and servces, wth consd-

erabe economc growth. The EUs market, on the other hand, s by ar the

most mportant destnaton or Russan exports. Companes rom the EU

are the man nvestors n Russa.1

Russa and the EU Member States are a members o the Unted Natons,

the Organsaton or Securty and Cooperaton n Europe (OSCE) and the

Counc o Europe. They are a commtted to uphodng and respectng

the undamenta vaues and prncpes o democracy, human rghts, the

rue o aw and the market economy. These vaues underpn the EU-Russa

batera reatonshp and ts ega bass, the Partnershp and Cooperaton

Agreement. The EU has a strong nterest n workng together wth Russato oster potca, soca and economc stabty, n the regon and word-

wde. Russa and the EU need to work together to combat new threats to

securty, as terrorsm, crme, ega mgraton and trai ckng n peope as we as drugs.

The Russan Federaton s aso a cruca partner n combatng cmate change.

The EU and Russa are aready cooperatng n many ways, ncudng the modernsaton

o Russas economy and ts ntegraton nto the word economy, securty, nternatona

ssues and cooperaton n the common neghbourhood o Eastern Europe.

The EU and Russa have an extensve daogue on potca ssues around the word,

ncudng the resouton o conlcts such as those n the Mdde East, Aghanstan,

the Western Bakans and Sudan and preventng the proeraton o weapons o mass

destructon and the reevant technooges, as n the cases o Iran and North Korea.

1 See the Facts and Fgures secton at the end o ths document.

3

I. Europe and Russia:Building a Strategic Partnership

European lags lyng n ront o St. Bass Cathedra onRed Square

I strongy beievete fu unity of ourcontinent can never be

acieved unti Russia,as te argest Europeanstate, becomes anintegra part of teEuropean process.()Today, buiding asovereign democraticstate, we sare tevaues and principesof te vast majority ofEuropeans. () A stabe,prosperous and unitedEurope is in our interest.() he deveopment

of mutifaceted tieswit te EU is Russiasprinciped coice.

Russian PresidentVadimir Putins in aetter to commemoratete 50t anniversary ofte European Union,25 Marc 2007

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Policy FrameworkThe Partnership and Cooperation Agreement (PCA)

The ega bass or EU reatons wth Russa s the Partnershp and

Cooperaton Agreement whch came nto orce on 1 December 1997

or an nta duraton o 10 years, whch w be automatcay extended

beyond 2007 on an annua bass - uness ether sde wthdraws rom

the agreement. It sets the prncpa common objectves, estabshes the

nsttutona ramework or batera contacts, and cas or actvtes and

daogue n a number o areas.

The Partnershp and Cooperaton Agreement s based upon the foowng

prncpes and objectves: the promoton of nternatona peace and secu-

rty; support for democratc norms as we as for potca and economc

freedoms. It s based on the dea of mutua partnershp - one amed at

strengthenng potca, commerca, economc, and cutura tes.

The provsons o the PCA cover a wde range o pocy areas ncudng

potca daogue; trade n goods and servces; busness and nvestment; nanca and

egsatve cooperaton; scence and technoogy; educaton and tranng; energy, coop-

eraton n nucear and space technoogy; envronment, transport; cuture; and on the

preventon o ega actvtes.

The PCA estabshes an nsttutona ramework or reguar consutatons between the

European Unon and the Russan Federaton as oows:

At Summts o Heads o State/Heads o Government, whch take pace twce a yearand dene the strategc drecton or the deveopment o EU-Russa reatons.

At Mnstera eve n the Permanent Partnershp Counc (PPC), to aow Mnstersresponsbe or varous pocy areas to meet as oten as necessary and to dscuss spe-

cc ssues. PPCs have so ar been hed wth the partcpaton o Foregn Mnsters,

Justce and Home Afars Mnsters, Energy, Transport and Envronment Mnsters.

At senor oi cas and expert eve.

Potca daogue takes pace at reguar Foregn Mnsters meetngs, meetngs osenor EU oi cas wth ther Russan counterparts, monthy meetngs o the Russan

Ambassador to the EU wth the troka o the Potca and Securty Commttee and at

expert eve on a wde range o topca nternatona ssues.2

Snce 2005, reguar consutatons on human rghts matters (see Human Rghts sec-ton) are hed.

2 The EU Troka ncu des oi cas rom the EU Member State that hods the EU Presdency, the ncomng EU

Presdency, the European Commsson and the EU Counc Secretarat. Experts rom around 10 partcuar Counc

(http://ue.eu.nt) workng groups aso meet wth ther Russan counterparts twce a year. These expert workng

groups cover common ssues o concern o a regona (Eastern Europe and Centra Asa, Western Bakans, Asa,

North Arca/Mdde East/Medterranean, Latn Amerca and the EU canddate countres) and sectora (OSCE and

Counc o Europe, UN, Terrorsm, Dsarmament and Non-proeraton) nature.

4

Presdent Barroso shakes hands wth Presdent Putn

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Between the European Parament and the Russan Parament (State Duma andFederaton Counc) n the EU-Russa Paramentary Cooperaton Commttee.

Members rom both Paraments meet on a reguar bass and exchange vews on cur-

rent ssues.

To compement the provsons o the PCA, a number o sectora and nternatona

agreements exst, as we as other mechansms or cooperaton (see secton beow).

Steel and textiles are the man sectors covered by bilateral trade agreements. The atest

Stee Agreement covers the years 2007 to 2008. The agreement w end on the day

Russa becomes a member o the WTO.

In November 2002, recognsng the great eforts that Russa has made n ts trans-ton to a uy-ledged market economy, the EU granted market economy status

to Russan exporters. It shoud be noted that ant-dumpng s not a major aspect n

EU-Russa trade at present, as ony 10 ant-dumpng measures are currenty n orce,

representng ess than 0.5 % o EU mports rom Russa.

Batera EU-Russa negotatons or Russas accesson to the WTO were concuded n2004 and negotatons at mutatera eve are st ongong.

The EU s currenty workng wth Russa on a new agreement or post-2007 to repace

the exstng Partnershp and Cooperaton Agreement (PCA). Both the EU and Russa have

experenced many potca, economc and soca changes snce the entry nto orce o

the PCA n 1997, thus the new agreement must relect these changes.The am o the new agreement w be to provde a durabe and comprehensve rame-

work or EU-Russa reatons based on respect or common vaues and w provde the

bass or the reatonshp n the comng years.

5

Commssoner Benta Ferrero-Wadner and Russan Foregn Mnster Serge Lavrov openng the European Studes Insttuten Moscow, September 2006

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The Common Spaces

At the St. Petersburg Summit in May 2003, the EU and Russa agreed to renorce ther

cooperaton by creatng n the ong term our common spaces n the ramework o the

Partnershp and Cooperaton Agreement and on the bass o common vaues and shared

nterests. These common spaces are as oows

1. The Common Economic Space, coverng economc ssues and the envronment;

2. The Common Space of Freedom, Security and Justice;3. The Common Space of External Security, ncudng crss management and non-pro-

eraton;

4. The Common Space of Research and Education, including Cultural Aspects.

The Moscow Summit in May 2005 adopted Road Maps to act as the short and medum-

term nstruments or the mpementaton o the our Common Spaces. These bud on

the on-gong cooperaton as descrbed above, set out urther specc objectves, and

specy the actons necessary to make the common spaces a reaty. They thereby deter-

mne the agenda or cooperaton between the EU and Russa or the medum-term.

The Northern Dimension and Cooperation with the Baltic Sea Region

The Northern Dmenson (ND) covers a broad geographc area rom the European Arctc

and Sub-Artc areas to the southern shores o the Batc Sea, ncudng the countres n

ts vcnty and rom North-West Russa n the east, to Iceand and Greenand n the west.In ts scope, the ND s ncreasngy ocusng on North-West Russa, ormng the argest

terrtory covered by ths pocy. The Batc Sea, the Kanngrad Obast wth ts oppor-

tuntes or deveopment gven ts partcuar geographca stuaton, as we as the exten-

sve Arctc and sub-Arctc areas ncudng the Barents Regon, are prorty areas or the

Northern Dmenson pocy. It w hep to ensure that no dvdng nes are estabshed n

the North o Europe. The ND partners are the European Unon, Iceand, Norway, and the

Russan Federaton; others, notaby the regona organsatons, partcpate.3 For more

normaton on the Northern Dmenson, see http://ec.europa.eu/comm/externa_rea-

tons/north_dm/ndex.htm.

Black Sea Cooperation

Wth the accesson o two Back Sea ttora states, Bugara and Romana, to the EU on

January 1, 2007, the prosperty, stabty and securty o our neghbours has become

even more mportant. The European Commsson, thereore, proposes to compementexstng poces at a regona eve, such as the European Neghbourhood Pocy (ENP),

the pre-accesson process wth Turkey and the Strategc Partnershp wth Russa, wth

a Back Sea cooperaton ntatve. Cooperaton w, where possbe, take pace wthn

exstng regona cooperaton mechansms (such as the Commsson or the Protecton

o the Back Sea amng at envronmenta protecton). Structura cooperaton wth the

Back Sea Economc Communty (BSEC) w be strengthened.

3 The regona organsatons are: the Counc o Batc Sea States (CBSS) ( www.cbss.st), the Barents Euro-Arctc

Counc (BEAC) ((www.beac.st), the Arctc Counc (AC) ( www.arctc-counc.org), and the Nordc Counc o

Mnsters (NCM) (www.norden.org),

6

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on the IRT, see the webnk at http://ec.europa.eu/enterprse/enterprse_pocy/bus-

ness_daogues/russa/ russaovervew.htm.

The EU: a staunch supporter of Russas WTO accesson

Cooperaton n ths area ams at urther ntegraton o Russa nto the word economy

and at preparaton or Russas accesson to the Word Trade Organsaton (WTO). The

EU recognses the undamenta roe that WTO membershp pays n ntegratng Russa

nto the word economy and n anchorng and consodatng Russas economc reorms.

Advantages stemmng rom Russas accesson to the WTO w be recproca. It w pro-

vde more stabty and predctabty, better terms o access, ncreased ega securty or

EU nvestments n Russa. Russan exporters w have guaranteed channes o exports to

a EU markets and to other WTO members.

In May 2004, EU Trade Commssoner Pasca Lamy and Russan Economy Deveopment

and Trade Mnster German Gre sgned an agreement concudng the batera market

access negotatons or the accesson o the Russan Federaton to the WTO. The EU

beng Russas argest tradng partner, the EU-Russa batera agreement was regarded

as major step n the process o Russas WTO membershp. It s the Russan Governments

decared am to jon the WTO n the course o 2007.

Facltatng the Russan economc success story

Russa needs contnued strong economc growth to acheve Presdent Putns 2003 goa

of doubng GDP n ten years, to attract new technoogy, to dversfy the economc baseand to deveop the producton of hgh-vaue and knowedge ntensve goods and servces.

These eements form the foundaton of Russan compettveness n nternatona markets.

The EU has a vta nterest n promotng prosperty n ts argest neghbour. The European

and Russan markets are undamentay compementary: both the EU and Russa each

have strengths that coud be shared to mutua benet. The EU s a knowedge-based

economy that, smutaneousy, needs to t ts ong-term growth prospects; whe Russa

s a hgh-growth emergng economy necesstatng a knowedge base abe to expot ts

hstorc strengths n advanced scence and technoogy.

Trade and nvestment lows between the EU and Russa are aready sgnicant but they

tend to be concentrated n sectors where barrers are ow and reguatory systems are

compatbe. However, Russan companes can come up aganst probems n meetng

EU norms and standards. Or servce provders may not be abe to meet prudenta or

egsatve requrements. For ther part EU companes wantng to nvest n Russa haveoten been hed back by egsatve and bureaucratc obstaces, as we as by hgh tarfs,

or exampe on mported components. Such barrers reduce our shared compettve-

ness.

Russa has experenced a strong reversa o ts tradtona capta outlows. Foregn drect

nvestment (FDI) more than doubed between 2005 and 2006, rom USD 14.6 to approx-

matey 30 bon. FDI yeary nlows are now hgher than 3% GDP. The nvestment share

o GDP s now at roughy the OECD average o 22% whch s rather ow compared to

other emergng economes ke Chna. Most o these nvestments go nto manuacturng

and servces and not the energy sector any more.

8

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In the ed o transport, the Counc adopted negotaton drectves or an Agreement

on satete navgaton (Gaeo/Gonass) n 1999. The negotatons were dscontnued

n 2001, however, preparatons are underway to restart them on a new bass ocusng

on programmatc prortes and the jont use o the European and Russan satete nav-

gaton systems.

A Fsheres Agreement, amng at deepenng cooperaton n sheres and the conserva-

ton o the vng marne resources n the Batc Sea, was sgned n 2006.

The Commsson servces are actvey addressng the queston o the ong queues oorres at the EUs and borders wth Russa and are n cose contact wth the Russan

authortes n order to denty and mpement soutons.

Communcaton between the EU and Russa has mproved at a eves, and there s a

better understandng o our respectve reguatory envronments n numerous sectors.

Concrete outcomes can be expected n the medum or ong term as ar as reguatory

convergence s concerned.

9

Deep and compreensive

economic integrationbetween te EU andRussia wi aow us tofuy expoit te potentiaof our partnersip.

Commission PresidentJos Manuel Barrosoat the EU-RussiaSummit in Helsinki onNovember 24, 2006.

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III. Energy, Climate Changeand Environment

10

Energy s a very mportant eement n the EU-Russa reatonshp. Ths reatonshp can

be best charactersed as mutua nterdependence o suppy, demand, nvestment andknow-how.

Russa s the words argest producer and exporter o natura gas and, together wth

Saud Araba, aso the argest producer and exporter o o. Russa possesses more than

20% o the words known gas reserves and 5% o proven o reserves. The share o the

energy and metas sector n the Russan economy s around 20% whe t empoys ony

2% o the tota abour orce.

There s a strong mutua nterest n a coser energy partnershp between the EU and

Russa one that ofers securty and predctabty or both sdes. The energy that the EU

buys rom Russa contrbutes very sgncanty to Russas current economc growth and

the mproved vng condtons o ts popuaton. In turn, the stabe low o reasonaby

prced energy remans an mportant motor or Europes economc growth. Utmatey,

our ctzens and busnesses ake need to be provded wth sae, reasonaby prced

energy.

Further developng a dynamc energy relatonshp

Russa w reman an mportant supper to the EU or years to come and has the poten-

ta to suppy sgncant quanttes o the addtona energy resources that the EU mght

need to mport n the medum term. Adequate nvestment n new capacty s requred to

extract and suppy gas and o. It s mportant to ensure that Russan and EU companes

ake shoud have ar, transparent and recproca access to energy resources and mar-

kets as we as to o and gas transportaton nrastructure.

EU Energy Commssoner Andrs Pebags

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Consderabe nvestments by European companes n the Russan energy sector were

made soon ater the coapse o the Sovet Unon. Today, nvestments low ncreasngy

rom Russan energy companes nto the European Unon. To saeguard nvestments

as we as trade, the EC engaged wth Russa, as we as other key energy producers, to

estabsh a comprehensve Energy Charter Treaty (ECT). Acton by the EU and govern-

ments s accompaned by cooperaton among EU and Russan companes.

Whe Russa has not rated the Energy Charter Treaty, t contnues to ai rm that t

ntends to oow ts key prncpes. Hence, t s the EUs ntenton to have the ECT prnc-pes ncuded n a orthcomng new agreement between EU and Russa.

Fosterng energy ei cency: the EU-Russa Energy Dalogue

The EU-Russa Energy Daogue, aunched n 2000, provdes opportuntes at both the

potca and expert eve to foster cooperaton and sove key probems. The ssues ds-

cussed ncude barrers to nvestments n terms of transparency, recprocty and protec-

ton of nvestors n the energy sector; as we as cooperaton on new technooges and

nfrastructure projects. Partcuar attenton s pad to energy ei cency and energy savng

an area that has vast potenta for drastcay reducng energy consumpton n Russa.

Gven goba warmng and hgh energy prces both Russa and the EU have a substanta

common nterest n enhancng energy ei cency n Russa. Accordng to Internatona

Energy Agency (IEA) data, energy ei cency per GDP n Russa s st 2.5 tmes ower

than n the OECD countres. As a resut, cooperaton n ths ed s to reman hgh on the

agenda.

Exampes o EU-Russa cooperaton at a practca eve ncude the jont Energy Daogue

Technoogy Centre n Moscow, whch has a proven track record as a oca pont or

practca cooperaton n the energy sector as we as two urther projects: rst, nvovng

the harmonsaton o energy poces and, second, concernng the promoton o energy

ei cency n three pot regons, namey Kanngrad, Astrakhan, and Archangesk.

Despte postve trends n the deveopment o EU-Russan energy reatons, some major

questons are st unresoved. Further daogue s requred, or exampe, concernng the

access o ndependent energy producers to ppenes n Russa as we as transt routes

rom Centra Asa. Addtonay, the ssue o dsruptons n o and gas suppes rom Russa

to the EU, arsng rom dsputes between

Russa and transt countres, aso needs to

be addressed through mutua daogue.

Both sdes recognse the serousness osuch events and rease the mportance

o a rutu partnershp. Both the EU and

Russa, thereore, understand the need to

use better the mechansm o jont-con-

sutatons as we as to estabsh an eary-

warnng system to ensure a steady suppy

o o and gas to a European consumers.

11

In te energy sector,Russia needs Europe asmuc as Europe needsRussia. he energy tatEurope buys from Russiaas been one of tekey factors in Russia'seconomic revivaand stabe lows ofreasonaby priced energyas been an importantmotor for Europe'seconomic growt. Inte energy sector, inoter words, we arereinforcing eac oter.

EU EnergyCommissionerAndris Piebalgs at theInternational EnergyWeek in Moscow on

October 31, 2006.

EU Fnanced wnd energy project n the Kanngrad Obast

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Nucear energy s beng addressed n severa respects: Negotatons have been

aunched or an agreement on trade n nucear materas. In addton, the EU wshes to

resume dscussons o the workng group on the saety o the rst generaton nucear

reactors. The Rome Summt n November 2003 decded on the renewa o the Scence

and Technoogy Cooperaton Agreement, coverng aso nucear Saety and Nucear

Fuson.

Of unque mportance: cooperaton on clmate change and the envronment

The European Unon works wth very many countres to tacke envronmenta probems.

But cooperaton on the envronment and cmate change between the EU and Russa

s unquey mportant. The partnershp s vta or the uture o the envronment at the

goba eve, wthn the European contnent, and at the oca eve where our borders

meet both on and and sea.

At a goba eve the commtment o the EU and Russa s essenta or the success o

eforts to combat cmate change; to promote sustanabe use o orest resources; to

hat the decne o boogca dversty; and to reduce wasteu use o energy resources.

Russas decson to raty the Kyoto Protoco o the UN Framework Conventon on

Cmate Change n 2005 was pvota n brngng that agreement nto orce. Russas

mpementaton o the Kyoto lexbe mechansms w hep to ensure that the Protoco

acheves ts objectves o combatng goba warmng by reducng greenhouse gas ems-

sons

The EU and Russa are aso partners n tackng the envronmenta probems o the

European regon, ncudng eforts to reduce trans-boundary ar pouton, to reduce

rsks rom ndustra accdents, to cean up regona seas such as the Batc, the Barents

and the Back Seas, to saeguard the vunerabe envronment o Northern Europe and to

protect natura areas, threatened speces, and boogca dversty. As drect neghbours

the EU and Russa co-operate cosey to protect cross-border nature resources and to

keep cean our shared rver basns and akes.

In many o these areas progress s aready evdent. Jont-undng o projects n the con-

text o the Northern Dmenson Envronmenta Partnershp (NDEP), eforts to mprove

Forest Law Enorcement and Governance, batera coaboraton on Kyoto mpemen-

taton, and the work o the EU-unded Russan Regona Envronment Centre to rase

envronmenta awareness are just a ew exampes. The openng n 2005 o the NDEP

supported St. Petersburg South-west Waste-water Treatment Pant shows what can be

acheved through co-ordnated acton on a more oca scae between Russan and EUpartners.

The aunchng o the EU-Russa envronmenta daogue n Hesnk n October 2006 has

moved ths cooperaton up a gear. Expert groups are now deveopng jont-actons n a

number o areas ncudng cmate change, ndustra pouton, nature protecton, or-

estry, water and marne ssues, convergence o envronmenta poces and assessment

o the envronmenta mpact o projects.

12

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Did you know

that the energy and metas ndustry represents around 20% o Russas GDP? TheEU s the argest consumer o Russan energy products wth 63% o Russas o exportsand 65% o ts gas exports beng exported to the EU. Russa s the argest sngeexterna supper o o, accountng or 30% o EU tota mports or some 27% o totaEU o consumpton. Russa aso accounts or some 44% o EU gas mports or around24% o tota gas consumpton. Wth such an mportant mutua dependence havng

arsen regardng energy exports, t s easy to see why energy pays an mportant partn EU-Russan reatons.

13

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IV. Freedom, Security,Justice and Human Rights

14

The EU and Russa agreed at the St. Petersburg Summt o May 2003 to create n the

ong-term a Common Space on Freedom, Securty and Justce. A road map agreed n

2005 sets out the objectves and areas or cooperaton n the short and medum term. Its

gradua deveopment takes pace n the ramework o the Partnershp and Cooperaton

Agreement. Bannua meetngs o the EU Troka (EU Presdency together wth ncomng

Presdency, Counc and Commsson) wth the Russan counterparts at mnstera eve

montor the overa mpementaton o ths Common Space.

EU Policy Aims

Cooperaton n ths area has become a key component n the deveopment o a stra-

tegc partnershp wth Russa. The scope o our cooperaton has ganed tremendous

mportance wth the expanson o our common borders ater the ast enargements o

the EU. Our cooperaton contrbutes to the objectve o budng a new Europe wthout

dvdng nes and actatng trave between a Europeans whe creatng condtons

or efectvey ghtng ega mgraton. Moreover, the EU has a consderabe nterest n

strengthenng cooperaton wth Russa by jonty addressng common chaenges such

as organsed crme, terrorsm and other ega actvtes o cross-border nature. Our

cooperaton, carred out on the bass o common vaues such as democracy, respect or

human rghts and undamenta reedoms, must relect the necessary baance between

Securty, on the one hand, and Justce and Freedom, on the other.

EU Strategy

In the area oFreedom, the deveopment o vsa pocy brngs tangbe benets to our

ctzens and mproves peope-to-peope contacts. The EU-Russa agreements on vsa

actaton and readmsson have been concuded n eary 2007, enterng nto orce

on 1 June 2007. In the vsa actaton agreement there are provsons on smped

procedures or ssung vsas (e.g. ess documentary evdence to be presented, shorter

procedures or processng vsa appcatons, wavng o vsa ees or certan categores o

persons, vsa exemptons or hoders o dpomatc passports). Readmsson obgatons,

concernng the return o own natonas and thrd country natonas egay resdng n

the terrtores o the EU Member States and Russa, are an mportant too to prevent and

tacke ega mmgraton.

On our common borders, the new European Agency or the Management o Operatona

Cooperaton at the Externa Borders o the Member States o the EU (FRONTEX), based n

Warsaw, has concuded a workng arrangement wth the Russan Border Guards Servce

on the estabshment o operatona cooperaton to mprove border management andcontros.

In the area oSecurty, ghtng terrorsm and organsed crme s a key prorty or coop-

eraton. The Commsson uses potca daogue and technca assstance to hep pro-

mote compance wth nternatona aw. Meetngs between the EU Counter Terrorsm

Coordnator and the Russan Speca Presdenta Envoy as we as at expert eve enabe

exchanges o normaton and best practces. The securty part o the Common Space

aso provdes or cooperaton on e.g. document securty as we as ght aganst money

aunderng, drugs, trai ckng n human bengs and corrupton. Regardng aw enorce-

ment, the EUROPOL-Russa Cooperaton Agreement o 2003 enabng the exchange o

JourNovn O

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strategc normaton. The agreement s nstrumenta to enhance our eforts to ght

organsed crme. Reguar meetngs o the EU-Russan Lason Oi cers n the ght aganst

organsed crme take pace n Moscow.

Russa has recenty adopted a aw on the protecton o persona data. Ratcaton o the

reated Counc o Europe Conventon s a prerequste or an addtona and enhanced

operatona agreement between Russa and EUROPOL.

In the area oJustce, the EU supports judca reorm n Russa, notaby n areas such

as tranng o judges and the modernsaton o the court system. Currenty, the EU andRussa are aso normay exporng possbtes or judca cooperaton n cv mat-

ters. As regards cooperaton n crmna matters, EUROJUST and Russa have recenty

aunched negotatons on a cooperaton agreement, whch w enhance the partes

work aganst cross-border crme.

Human Rights

Wth democracy, respect or human rghts, undamenta reedoms and the rue o aw

beng at the very core o EU-Russa reatons, t s ony natura that these ssues are regu-

ary dscussed at a eves.

In 2005 reguar, sx-monthy EU-Russa human rghts consutatons were estabshed.

They have provded or a substanta daogue on human rghts ssues n Russa and the

EU and on EU-Russan cooperaton on human rghts ssues n nternatona ora. The EU

aso mantans a reguar daogue wth both Russan and nternatona NGOs on humanrghts ssues.

Issues that the EU rases wth Russa n the human rghts consutatons ncude: the

human rghts stuaton n Chechnya and the North Caucasus, ncudng torture and -

treatment; reedom o expresson and assemby, ncudng reedom o the meda; the

stuaton o cv socety n Russa, notaby n ght o the aws on NGOs and extremst

actvtes; the unctonng o the judcary, ncudng ndependence ssues; the observa-

ton o human rghts standards by aw enorcement oi cas; racsm and xenophoba;

egsaton reatng to eectons. For ts part the Russan sde rases matters o concern to

t n deveopments nsde the EU.

The EU has supported the deveopment o democracy, the protecton o human rghts

and the deveopment o a heathy cv socety n Russa notaby through the European

Intatve or Democracy and Human Rghts (EIDHR) (http://www.derus.cec.eu.nt/en/

p_321.htm). Ths has enabed the EU to work wth NGOs and partners as or exampe theCounc o Europe n eds such as: pena reorm; mprovng the capacty o awyers and

aw enorcement oi cas to appy the European Conventon on Human Rghts; combat-

ng human rghts voatons n the North Caucasus; human rghts o conscrpts n the

armed orces; promotng chdrens rghts; promotng the rghts o ndgenous peopes.

15

Journast Anna Potkovskaya oNovya gazeta newspaper, murderedn October 2006

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V. Foreign Policy Cooperationand External Security

16

The EU and Russa have agreed to renorce

ther cooperaton n the area o externa

securty as they both have a partcuar

responsbty or securty and stabty on

the European contnent and beyond.

EU Policy Aims

There are 5 prorty areas or enhancngEU-Russa cooperaton:

Strengthenng daogue and coopera-ton on the nternatona scene

The ght aganst terrorsm

Non-proeraton o weapons o massdestructon and ther means o devery,

strengthenng export contro regmes

and dsarmament

Cooperaton n crss management

Cooperaton n the ed o cv protecton

EU Strategy

The EU and Russa work to strengthen the roes o the Unted Natons, OSCE and Counc

o Europe (CoE) n budng an nternatona order based on efectve mutaterasm.

An extensve and ever more operatona potca daogue characterses EU-Russa rea-

tons (see above).

The EU has a strong nterest n engagng Russa n strengthenng stabty on the European

contnent, notaby n regons adjacent to EU and Russan borders our common neigh-

bourhood. The regona conlcts n Modova (Transnstra) and the South Caucasus

(Abkhaza, South Osseta and Nagorno-Karabakh) are reguary dscussed. The EU aso

stresses the mportance of promotng democracy n Bearus. These dscussons smutane-

ousy grant both partners the opportunty to voce a frank exchange of vews regardng

the stuaton n the common neghbourhood and a patform to seek common soutons.

The EU and Russa seek to strengthen ther cooperaton n a reevant nternatona and

regona ora n the ght aganst terrorsm, notaby by promotng and deveopng thereevant conventons and nstruments n the UN, OSCE and Counc o Europe. The EU

n partcuar seeks an eary nasaton o the UN Comprehensve Conventon aganst

Internatona Terrorsm.

In the area onon-proeraton, export contros and dsarmament, a major objectve

o the EU and Russa s to promote the unversa adherence to and greater efectveness

o the reevant nternatona nstruments. A partcuar EU concern at present s to seek

Russan support or the accesson o a EU Member States to the Msse Technoogy

Contro Regme (MTCR). Russa s seekng to jon the Austraa Group (Boogca and

Chemca Weapons Contro).

Presdent Putn meets EU Hgh Representatve Javer Soana and Romano Prod

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A major part o EU undng has supported the Internatona Scence and Technoogy

Centre (ISTC) n Moscow or the redepoyment o weapons experts to work on peace-

u projects. Snce 1994, some 60,000 experts have beneted rom about 2100 projecs

worth a tota o $635 mon. Out o ths gure the EU has contrbuted 150 mon to

the ISTC redepoyment eforts.

The EU contrbutes aso to the G8 Goba Partnershp aganst the Proeraton o

Weapons o Mass Destructon. At the G8 Summt n December 2003 ormer Commsson

Presdent Prod commtted 1 bon over ten years as a contrbuton to the Partnershp.Currenty, the EU s we on ts way to meetng ts pedge wth around 800 mon com-

mtted and more than 400 mon spent. The EU commtment reers to the our areas

o cooperaton that have been dented: non-proeraton, dsarmament, counter-ter-

rorsm and nucear saety.

At the Seve European Counc n 2002, the EU dened the arrangements or Russan

partcpaton n EU crss management operatons. Russa has however not accepted

to partcpate n EU operatons under these condtons. Nevertheess a pocy daogue s

deveopng n the ed o crss management and European Securty and Deence Pocy,

notaby through the reguar meetngs o the Russan Ambassador n Brusses and the

Potca and Securty Commttee Troka. There are aso reguar meetngs between the

Che o Genera Staf o the Russan Federaton and the Charman o the EU Mtary

Commttee as we as expert-eve contacts.

In the ed oCv Protecton

,the am s to strengthen daogue and cooperaton torespond to dsasters and emergences. Cooperaton prmary takes pace between

the EUs Cv Emergency Montorng and Inormaton Centre based n the Drectorate

Genera or Envronment o the Commsson and the Russan Mnstry or Emergency

Stuatons. An arrangement or practca cooperaton was estabshed n 2004 provdng

or exchanges o normaton, contact detas or 24-hour communcaton and exchang-

es o staf between the operatona centres.

17

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VI. Research, Educationand Culture

18

The EU and Russa have a strong and genune nterest to work together to foster potca,

soca and economc stabty n Russa, n the regon and wordwde. Cooperaton n

research and deveopment, educaton and cuture shoud contrbute to ths objectve.

EU Policy Aims

Increased cooperaton n the ed o research and deveopment, educaton and cuture

w contrbute to ncreased cooperaton between nsttutons and peope workng on

common chaenges, better knowedge o dferng hstory and cuture and more con-tacts among peope, partcuary the young.

EU Strategy

At the St. Petersburg Summt n May 2003, the EU and Russa agreed to set up a Common

Space o Research and Educaton, Incudng Cutura Aspects.

In the area oresearch and deveopment the objectve s to enhance EU-Russa coop-

eraton n mutuay agreed prorty eds and create avourabe condtons, correspond-

ng to the nterests o both partes, amed at

structurng a knowedge-based socety n the EU and Russa;

promotng a hgh rate o compettveness and economc growth by modernzaton othe natona economes and mpementaton o advanced scentc achevements;

strengthenng and optmzng the nks between research and nnovaton; mantanng sma and medum sze entrepreneurshp n the ed o research and

nnovaton.

Young Russans ceebratngEurope Day 2007 n Moscow

on Red Square

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In the area oeducaton the objectve s to encourage ntegraton and coser coopera-

ton wthn the ramework o the new European Hgher Educaton Area n accordance

wth the man provsons o the Boogna Process, amng n partcuar at:

adoptng comparabe hgher educaton degrees;

adoptng a two-ter bacheor-master and as soon as possbe a three-ter bacheor-master-doctorate educaton system;

ntroducng a credt system, amed at practcng the European Credt Transer System(ECTS) to check the voume o the taught subjects;

promotng academc mobty;

cooperatng n the provson o earnng quaty;

ntroducng ntegrated currcua at hgher educaton nsttutons;

promotng e-ong earnng;

modyng the management o hgher educaton nsttutons wth a vew to adaptngstudents earnng to abour market changes;

ncreasng the attractveness o the hgher educaton systems n Russa and n the EU.

In the area ocuture there are three objectves:

to promote a structured approach to cutura cooperaton between the enarged EUand Russa, to oster the creatvty and mobty o artsts, pubc access to cuture, the

dssemnaton o art and cuture, nter-cutura daogue and knowedge o the hstory

and cutura hertage o the peopes o Europe.

to strengthen and enhance the European dentty on the bass o common vaues,ncudng reedom o expresson, democratc unctonng o the meda, respect o

human rghts ncudng the rghts o persons beongng to mnortes and promoton

o cutura and ngustc dversty as a bass o vtaty o cv socety n Europe wthout

dvdng nes.

to deveop cooperaton between the cutura ndustres o the EU and Russa n orderto ncrease both ther cutura and economc mpact.

The wider context

Cooperaton n research and deveopment, educaton and cuture takes tme to deveop.

However, scentc cooperaton between the EU and Russa s aready very good and

successu. Russa has, to date, been the most successu thrd country partcpant n

the EU Research and Deveopment Framework Programme (http://ec.europa.eu/

research/p7/). Thanks to the ntense and contnuous pocy daogue on research, com-

mon prortes and acton pans have been adopted and are beng mpemented (such

as n Energy, Materas and Nanotechnooges, Space, Aeronautcs, Cmate Change and

Ecosystems, and Heath).

Cooperaton n the ed o educaton takes pace through the Tempus programme

(http://www.et.europa.eu/Web.ns/pages/Tempus_EN?opendocument) whch heps

to reorm the Russan hgher educaton system and works towards convergence wth

19

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EU standards and practces. The Commsson envsages a contnuaton o the Tempus

programme n the perod 2007-2013. The Commsson s aso encouragng access to the

Erasmus Mundus programme (http://ec.europa.eu/educaton/programmes/mundus/

programme/uture_en.htm) where the number o Russan students seected to receve

schoarshps to partcpate n European jont Masters Courses has aready ncreased

to 36 n 2006, wth enormous space o growth on both sdes. The Youth Programme

(http://ec.europa.eu/youth/ndex_en.htm) s another mportant and ei cent too or

peope to peope contacts, to enhance mobty and cooperaton n the ed o non-

orma educaton or young peope.

In 2006, the European Studes Insttute has been opened n Moscow at the prestg-

ous Moscow State Insttute o Internatona Reatons (MGIMO Unversty), ormng a

key oca pont o EU studes and cutvaton o understandng the EU amongst Russan

students and eaders o tomorrow.

A strong convergence o vews and common approaches on the ratcaton and mpe-

mentaton o the UNESCO Conventon on the protecton and the promoton o the

dversty o cutura expressons s beng promoted.

Did you know

that an art exhbton, entted Europe, Russa, Europe took pace n Moscow at

the word renowned Tretyakov Gaery n May 2007, markng the 10th annversary othe Partnershp and Cooperaton Agreement, and the 150th annversary o the StateTretyakov Gaery? Ths exhbton devoted to European hstory and the arts ncudedmajor masterpeces rom EU Member States and Russan coectons. The exhbtonemphassed the natona dentty, vaues and cutura tradtons o each partcpatngcountry and enhanced mutua understandng and cooperaton between the EU andRussa.

20

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21

VII. EU CooperationProgrammes and ProjectsA programme o nanca cooperaton s beng put n pace to be unded by both sdes

-to oster and to strengthen the strategc partnershp between the European Unon and

Russa. Projects w be unded to the extent that they meet common potca or pocy

prortes. Ideas or projects whch w urther the objectves dented n the road maps

are expected to emerge rom the Common Space daogues. I both sdes agree, projects

desgned to acheve precse pocy outcomes whether n the ed o envronment and

cmate change, transport or energy; to support the ght aganst organsed crme, ter-

rorsm or corrupton; or n avour o ncreased cooperaton n scence and technoogy,

academc or cutura exchange woud be unded rom the EU-Russa programme o

nanca cooperaton.

In a hstorca perspectve

Fnanca cooperaton wth Russa began n the eary 1990s, under the then TACIS pro-

gramme. The dea was to hep smooth Russas transton to democracy and the market

economy, and was targeted at a whoe range o sectors. Snce 1991, some 2.7 bon

o assstance was provded through the European Commsson. Gven the sgncant

recent mprovements n the Russan Federatons sca poston, the need or such

broad rangng assstance has consderaby dmnshed. Fnanca cooperaton w now

be careuy targeted to meet the objectves dened n the road maps to the Common

Spaces. In uture EU nanca cooperaton wth Russa s expected to be matched by

the Federaton. The amounts made avaabe by the Commsson have been reduced

accordngy.

The numbers and the termnoogy

Up to 60m per annumw be avaabe to boster the EU-Russa reatonshp n the three

or our years rom 2007, concentrated mosty on the our Common Spaces, academc

and educatona exchange, and support or Russan regons. But the tota gure coud

rse to 100mdependng on the eve o Russan nvovement n regona, cross-border

and other programmes.

Fundng s sourced n the man rom the European Neighbourhood and Partnership

Instrument (ENPI). Prortes or cooperaton, as descrbed above, are set out n the

natona, regona and cross-border indicative programmes or 2007-2010, approved by

EU Member States and agreed wth the Russan Government. They set out respectvey

aocatons or cooperaton wth the Russan edera authortes, wth a number o coun-

tres n the regon and or cooperaton between oca authortes on ether sde o the

Russa-EU border.

The regona programme encompassng Eastern Europe and Russa, the Southern

Caucasus and Centra Asa, s desgned to encourage regona cooperaton n transport,

energy, trade and nvestment; on the envronment; and or border and mgraton man-

agement, and the ght aganst organsed crme and drugs. Fundng may aso be made

avaabe or the Northern Dmenson (see separate secton). Russan repubcs and

obasts are egbe or a number o the cross-border , or neghbourhood programmes

set up by the European Commsson (the Barents, and Batc Seas Programmes, Karea,

and South-East Fnand/Russa; Estona/Latva/Russa; and Lthuana/Poand/Russa). The

dea s to promote economc and soca deveopment n border areas; to tacke common

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envronmenta, heath and securty probems; and to encourage cross-border exchange

and contacts.

Fundng or nanca cooperaton wth Russa s aso sourced rom the Nuclear Safety

Instrument, the Democracy and Human Rights Instrument, a number o thematic pro-

grammes, and a crss were to occur rom severa instruments desgned to respond

to humantaran or other crses.

Nuclear safety

The TACIS programme has contrbuted snce ts begnnngs n 1991 to mprove nucear

saety n the Russan Federaton wth some 500 mon.

Fundng was dedcated to on-ste assstance to nucear stes n a parts o the Russan

Federaton, or exampe n Smoensk (West Russa), Sosnovy Bor (Lenngrad Obast) and

Koa (Arctc Russa), and to provde the necessary support by EU operators or nucear

saety mprovements at nucear power pants n Russa on a contnuous bass. Such

assstance ocuses on the areas o desgn saety, operatng and surveance condtons

and the overa organzaton o operatona saety.

The programme has aso supported the Natona Reguatory Authorty o Russa.

Through EU technca and nanca assstance, the programme asssts n estabshng

the necessary ega ramework. It aso mproves the overa saety cuture through more

orma and reguar daogue between pant operators and reguatory authortes, on the

one hand, and ther western counterparts, on the other.TACIS has aso asssted n the mprovement o nucear saeguards and n contrbutng

to the nucear wndow o the Northern Dmenson Envronmenta Partnershp (NDEP)

(http://ec.europa.eu/comm/externa_reatons/north_dm/) - to whch the Commsson

s one o the man contrbutors. The NDEP ams at tackng the stuaton n Northwest

Russa, where the egacy o the Sovet Arctc leet presents a major probem.

Our coaboraton wth our Russan partners has been very hghy vaued by the dferent

Russan stakehoders, a act that has been ceary relected through ther postve state-

ments durng recent meetngs to aunch our cooperaton or the perod 2007-2013 that

s oreseen under a new Nucear Saety Instrument.

22

Ka

750tgreahst

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VIII. Cooperation withRussias Regions

23

Kaliningrad The 2004 EU enargement resuted n the Kanngrad obast o Russa becomng an

excave surrounded by EU terrtory and borderng on Poand and Lthuana. The EU

recognsed Russas concerns about the possbe negatve mpacts o EU enargement

on the transt o goods and peope to and rom Kanngrad. Ths ed to an agreement

between the EU and Russa on a actaton transt regme or the movement o persons

n 2003. The prosperty gap between Kanngrad and the neghbourng regons s aurther ssue o concern, whch has an mpact on the soco-economc stuaton on ether

sde o the borders.

EU Policy Aims

to ensure that Kanngrad regon can benet rom and contrbute to the sustanabedeveopment o the Batc Sea regon.

to promote the soco-economc deveopment o Kanngrad.

to ensure the smooth and ei cent unctonng o the transt o goods and personsbetween Kanngrad and the rest o Russa.

EU Strategy

As regards transt between Kanngrad and the rest o Russa, steps are taken to mprove

the ei cency o border crossngs and the soco-economc deveopment o the regon.

Customs authortes o Lthuana and Russa together wth the Commsson cooperate

to make the transt arrangements uncton as smoothy as possbe. Snce 2004, strong

growth rates n transt voumes suggest that the arrangements work we. Technca

meetngs/consutatons between the Commsson and the reevant authortes are

addressng the outstandng ssues on the transt o ve anmas, veternary and phy-

tosantary checks, the mtatons on the amount o persona goods aowed to be taken

by a tran passenger and capacty probems at border crossng ponts. Lthuana and

Russa have acknowedged the good unctonng o the actated transt regme o

persons, whch has entered nto orce n Juy 2003. The Commsson ssued a report n

December 2006, acknowedgng that the transt regme works n a satsactory manner.

Further actatng cross-border movement between Kanngrad and ts neghbours,

however, s caed or. Border nrastructure has to be upgraded through n partcuar

swt and ei cent mpementaton o the projects aready agreed. Procedures have tobe streamned and smped to emnate ong queues o orres hnderng movement

between Kanngrad and neghbourng regons o Poand and Lthuana. Steps are

beng made n ths drecton, yet the deepenng o urther cooperaton remans o great

mportance.

Kanngrad sufered a steep economc decne n the 1990s, wth negatve soca con-

sequences. However, snce 2001 economc growth n Kanngrad has been aster than

the Russan average. It has become an mportant export hub or raw materas rom

Russa and an mport centre or manuactured goods rom the EU. Trade s boomng n

Kanngrad, due to customs and tax benets granted to t by the edera government.

Kanngrad recenty ceebrated ts

750th brthday and s amongst thegreat centres o European cuturahstory

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Kanngrads status as a Russan Speca Economc Zone has been recenty renewed,

athough wth sma changes. The new egsaton s geared towards attractng nvest-

ment n manuacturng ndustres. Whst nvestment eves are st reatvey ow, there

are some exampes o successu oregn nvestments n Kanngrad, such as the BMW

car assemby pant.

The EU supports Kalnngrads development

For Kanngrad, the EU has commtted cose to 100 mon or technca assstance n

the perods 2001-2003 and 2004-2006. Another over 50 mon have been earmarked

or the perod 2007-2013. Projects cover nsttuton budng, energy, transport, enter-

prse restructurng, management tranng and envronment. The ntenton s to support

Russan eforts to promote the economc and soca deveopment o the Kanngrad

regon and to strengthen cross-border cooperaton aong the borders o the enarged

EU wth Russa.

Exampes o projects ncude:

promoton o nnovatve sma and medum-szed busness actvtes, trade and nvest-ment, the mprovement o energy dstrbuton and ts ei cent use at ndustra and

muncpa eves, and the deveopment o the admnstratve capacty o regona

authortes.

cooperaton, exchange and networkng between Kanngrad and EU unverstes.

programmes to combat drug addcton, HIV/AIDS and tubercuoss. envronmenta assstance, wth partcuar emphass on waste water treatment and

montorng o o sps n the Batc Sea.

Improvement o heath ndcators and vocatona tranng.

Emphass has recenty been paced on projects ntended to deveop the admnstratve

capacty o the regon (partcuary on mprovement o overa condtons or busness

deveopment); to mprove the quaty o prmary and preventve heath care servces; to

promote the nteectua potenta o the regon; and to encourage cross-border cutura

exchange.

Northern CaucasusSnce the begnnng o the conlct n Chechnya n autumn 1999 and ncudng the new17,5-mon undng decson or 2007, the European Commsson has provded

around 220 mon n humantaran ad or ths crss, makng the EU the argest

donor n the regon.

The ad s amed at supportng nternay dspaced persons (IDPs) and vunerabe groups

n Chechnya, as we as IDPs n Ingusheta and Dagestan. Assstance s provded mosty

n the oowng sectors: protecton o the cvan popuaton, sheter rehabtaton,

ncome-generaton actvtes, heath and psycho-soca assstance. Addtonay, sup-

24

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port w be provded to Chechen reugees n Georga and Azerbajan. Funds are beng

aocated va the Drectorate-Genera or Humantaran Ad o the European Commsson

(ECHO).

Reatve mprovements n the soco-economc stuaton n Chechnya over the ast two

years and a sgncant reconstructon efort have ed, n 2007, to a downszng o ECHOs

humantaran programmes n the regon or the rst tme snce the begnnng o the

crss.

However, athough the conlct n Chechnya has receded, the humantaran stuaton n

the regon remans di cut. Some 150,000 peope contnue to be nternay dspaced

wthn the Repubc. Many o them are returnees who have come back rom Ingusheta

over the past ew years but coud not go home because ther houses were destroyed

durng the conlct. Lvng condtons reman extremey di cut. Outsde Chechnya,

around 18,000 peope are st dspaced n Ingusheta and some 7,000 n Dagestan.

In parae to a phasng down o humantaran ad actvtes, the EUs ocus s shtng

rom purey humantaran assstance to deveopment programmes. The EU has recenty

aunched a new speca programme or economc recovery o the North Caucasus

wth a budget o 20 mon or heath, educaton and economc deveopment. There

exsts a cear mutua nterest n the stabty, and thereore the recovery and deveop-

ment, o the North Caucasus. The EU stands ready to provde urther support to the

recovery programme put n pace by the Russan Federaton and regona governments

or Chechnya and the surroundng regon.

Chechen vagers recevng tranng n ECHO-unded ncome generatng actvtes

2525

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EU-Russa Facts and Fgures

Russian Federation EU

Popuaton 143 mon 493 mon

Area 17,075,000 sqkm 4,423,000 sqkm

Popuaton densty 8,3 nhabtants per sqkm 113 nhabtants per sqkmLe expectancy at brth 67 years 75.8 years

Gross Domestc Product

(GDP) n (rounded)

740 bon 10,750 bon

GDP per capta

(purchasng power party)

n (rounded)

9200 22,300

GDP structure

Industry 36.6% 27.2%

Servces 58.2% 67.1%

Agrcuture 5.3% 4.3%

26

Annex Facts and Figures

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Trade n Goods:

RUSSIAS TRADE WITH MAIN PARTNERS 2005

Russas major mport partners Russas major export partners

Partners Mo euro % Partners Mo euro %

World 77.900 100,0 World 191.173 100,0

1 EU 34.904 44,8 1 EU 107.494 56,2

2 Ukrane 6.250 8,0 2 Chna 10.489 5,5

3 Chna 5.819 7,5 3 Ukrane 9.949 5,2

4 Japan 4.695 6,0 4 Turkey 8.729 4,6

5 Bearus 3.709 4,8 5 Swtzerand 8.410 4,4

EU TRADE WITH MAIN PARTNERS 2006

The EUs major mports partners The EUs major export partners

Partners Mo euro % Partners Mo euro %

World 1.348.317 100,0 World 1.164.719 100,0

1 Chna 191.342 14,2 1 USA 267.672 23,0

2 USA 175.813 13,0 2 Swtzerand 86.392 7,4

3 Russa 136.847 10,1 3 Russa 71.791 6,2

4 Norway 79.019 5,9 4 Chna 63.248 5,4

5 Japan 75.631 5,6 5 Turkey 46.350 4,0

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EUROPEAN UNION, IMPORTS FROM RUSSIA (MIO )

SITC Rev.3

Product Groups2002 % 2004 % 2006 %

Share o

tota EU

mports

TOTAL 61.999 80.722 136.847 10,15

Prmary Products

of which

44.752 72,2 57.895 71,7 101.298 74,0 21,20

Energy 37.302 60,2 48.749 60,4 89.534 65,4 28,34

Agrcutura prod. 2.538 4,1 2.215 2,7 2.697 2,0 3,10

Manu. Products 7.114 11,5 9.131 11,3 11.173 8,2 1,73

EUROPEAN UNION, EXPORTS TO RUSSIA (MIO )

SITC Rev.3

Product Groups2002 % 2004 % 2006 %

Share o

tota EU

exports

TOTAL 34.279 45.832 71.791 6,16

Prmary Products

of which

4.862 14,2 5.312 11,6 7.671 10,7 5,22

Agrcutura prod. 4.222 12,3 4.571 10,0 6.318 8,8 9,20

Energy 182 0,5 247 0,5 461 0,6 0,98

Manu. Products

of which

28.781 84,0 38.820 84,7 51.359 71,5 6,44

Machnery 10.920 31,9 16.341 35,7 17.024 23,7 7,45

Chemcas 4.659 13,6 6.341 13,8 10.688 14,9 5,88

Transport equpm. 3.693 10,8 4.970 10,8 8.087 11,3 5,53

28

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EU TRADE IN GOODS WITH RUSSIA (million euro

Exports Imports Baance

2000 22 738 63 777 -41 039

2001 31 602 65 875 -34 2722002 34 420 64 493 -30 073

2003 37 206 70 663 -33 457

2004 46 030 83 954 -37 924

2005 56 880 112 613 -55 733

2006 72 360 140 586 -68 226

29

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Trade n Servces:

EU25 TRADE IN SERVICES* WITH RUSSIA (million euro

Credt Debt Net

2004 2005 2006 2004 2005 2006 2004 2005 2006

Tota

o whch:

9 094 11 444 13 084 6 800 8 125 9 892 2 294 3 320 3 191

Transportation 2 324 2 899 3 116 2 708 3 486 4 610 -384 -587 -1 494

Travel 2 241 2 529 3 034 1 772 1 863 2 062 469 666 973

Other servces

o whch:

4 355 5 884 6 606 2 309 2 766 3 094 2 047 3 118 3 511

Communications services 130 149 229 130 184 230 0 -35 -2

Construction services 622 810 466 412 434 257 210 376 208

Insurance services 92 91 109 59 89 169 33 2 -60

Financial services 556 722 903 89 115 173 467 606 729

Computer and information

services

310 500 679 32 39 59 278 461 620

Royalties and license fees 125 216 106 22 16 6 103 200 100

Other business services 2 362 3 138 3 844 1 440 1 756 2 063 922 1 381 1 782

Personal, cultural and

recreational services

42 122 112 29 34 40 13 88 72

Government services, other 116 137 157 95 98 97 21 39 62

Tota extra-EU25 372 620 406 292 449 688 325 044 349 357 382 544 47 576 56 935 67 144

Russa / tota extra-EU25 2.4% 2.8% 2.9% 2.1% 2.3% 2.6%

* 2006 data are premnary

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Investments:

EU-25 FDI stocks n Russa Russan FDI stocks n EU-25

end-2004 end-2005 end-2004 end-2005

Mons o Euro 20 983 31 324 5 558 9 213

EU25 FDI lows wth Russa (mon euro)

2001 2002 2003 2004 2005

EU25 FDI n Russa

(outward)

2 495 2 454 7 704 5 878 8 997

Russan FDI n the

EU25 (nward)

752 342 704 196 4 107

Net EU25 FDI lows

(outward mnus

nward)

1 743 2 112 7 000 5 682 4 890

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The European Union and Russia: Close Neighbours, Global Players, Strategic Partners

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