EU-Russia relations, Spring 2004

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Series Details 15.3.04
Publication Date 15/03/2004
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Following recent concerns about the European Union's deteriorating relations with the Russian Federation, the European Commission has published a Communication on EU-Russia relations. The Commission identifies the problem areas and calls for the Union to adopt “a more coherent and more consistent approach to relations with Russia ... founded on the implementation of the common values underlying the bilateral partnership.”

Providing that agreement can be reached on renewing the Partnership and Co-operation Agreement (PCA), which is currently the main issue dividing the two, the Commission wants to see an Action Plan with Russia agreed in time for the forthcoming Summit between the two, in May this year.

Released prior to the meeting of the General Affairs and External Relations Council on 23 February, the Communication formed the basis for Ministers' discussions on EU-Russia relations.

Background

'We, the leaders of the European Union and the Russian Federation, held intensive and productive discussions in Rome on 6 November 2003. We agreed to reinforce the strategic partnership between the EU and Russia, on the basis of common values, with the aim of consolidating stability, security and prosperity on the European continent. We reaffirmed our shared vision of a united European continent.' Thus read the opening paragraph of the Joint statement issued after the 12th EU-Russia Summit, held in November 2003.

Although the EU was even then expressing concern over a number of issues (including the arrest of Mikhail Khodorkovsky, head of the Yukos oil company, in October 2003 on charges of fraud and tax evasion, and Russia's decision not to ratify the Kyoto Protocol in September 2003) relations were better than they are now.

It was the December 2003 European Council which invited the Commission to draw up 'an assessment report on all aspects of the Union's relations with Russia and to propose measures aimed at strengthening the strategic partnership and respect of the values on which it is based'. It is widely held that the Council's request was triggered by the actions of Italy's Prime Minister, Silvio Berlusconi, who presided over the November Summit. Ignoring EU policy guidelines, Mr Berlusconi refused to criticise Russia's human rights violations in Chechnya or Moscow's refusal to sign the Kyoto Protocol, and instead defended the arrest of Mr Khodorovsky and Russia's alleged human rights abuses in Chechnya (Financial Times: EU admits flaws in relationship with Russia and European Voice: Chechnya set for key role in EU's more aggressive and coherent stance towards Russia). According to the European Parliament, the 'spectacular statements on Chechnya' flew in the face of established EU positions (see: Firm and consistent policy needed towards Russia).

However, Mr Berlusconi's idiosyncratic approach to the Russian President was only the latest in a series of initiatives taken by individual Member States, which appear to give lie to the concept of a united EU approach to Russia.

As the Financial Times put it: 'too many European leaders have been trying to forge special relationships with the Kremlin. Both Tony Blair and Gerhard Schröder were said to have 'soft-pedalled' on Chechnya. President Chirac was very critical, 'until he saw a chance of winning Russian support for his opposition to US policy in Iraq and other issues' at which point he 'abandoned criticism of the Chechen war overnight.'

Whilst such moves can be seen simply as the prerogative of national governments to make political capital where they can, they also assist 'those in Moscow who believe the best way to deal with the EU is to divide and rule.' (See: The wayward logic of Europe's neighbour).

Adopted on 9 February 2004, the Communication ... on relations with Russia advocates 'a more coherent and more consistent approach to relations with Russia'. It does not question the value of Russia to the EU, but stresses the importance to the Union of 'an open, stable and democratic Russia, acting as a strategic partner which can uphold European values, continue reforms, implement commitments and, in cooperation with the EU, play a constructive role in the [New Independent States].'

Neither does it avoid the reality of the relationship, arguing that 'the EU and Russia should be ready, as strategic partners, to discuss frankly all issues of concern, including human rights, media freedom and events in Chechnya ... (see press release: Commission calls for the strengthening of EU-Russia relations)

The Communication proposes that the European Union should seek to manage the relationship by:

  • building a genuine strategic partnership, based on issues rather than 'grand political declarations'
  • addressing 'any Russian practices that run counter to European values, including those on human rights, media freedom and cooperation on the environment'
  • pursuing a more balanced cooperation agenda and promoting greater policy coherence
  • identifying and promoting EU interests in related areas, launching the Permanent Partnership Council and improving the efficiency of other cooperation institutions (intended to act as a clearing house for all issues of EU-Russia cooperation, the PPC replaced the Co-operation Council, which first met in January 1997).

A major concern at the moment is Russia's refusal to renew the Partnership and Cooperation Agreement (PCA), described as 'the essential cornerstone of the European Union's relations with Russia.' The EU wants the PCA to apply 'without pre-condition or distinction' to all 25 Member States from 1 May. Russia has so far refused to extend the Agreement, claiming that it will lose out when preferential trade agreements which it has with some of the Acceding States end. The EU argues that a new PCA will bring greater benefits to Russia.

Some see Russia's intransigence as a way of protesting at the Union's enlargement, which will bring into the EU fold many countries which were previously under Russian domination. The EU insists that it is willing to discuss 'legitimate concerns' about enlargement, but that the PCA is a separate issue.

The Financial Times reported that Russia had presented the EU with 'a list of 14 concerns linked to EU enlargement'. Whilst the overall aim is apparently to reduce the impact of enlargement on Russian businesses, 'the list also raises some controversial political issues, such as visa requirements for Russian citizens wanting to travel into the EU and the status of Russian-speaking communities in the Baltic countries (see: Russia seeks to safeguard its interests after EU expands). Russia is also said to want compensation for the losses it believes it will suffer because of enlargement. According to the Financial Times, 'Russia would have a right to claim compensation if it belonged to the World Trade Organisation. But it is still outside the WTO, partly because of EU objections to its energy pricing' (see: Facing Russia down).

However, on 22 February, speaking to the Financial Times, Vladimir Chizhov, Russia's Deputy Foreign Minister in charge of EU relations said that 'Moscow might be willing to avoid creating a legal vacuum after the May 1 enlargement date by extending the PCA's terms to the new EU members at least until June' (see: Moscow offer on pact with Brussels).

Providing agreement can be reached on extending the PCA to the new Member States, the Communication calls for the EU to start work on an Action Plan intended to develop the concept of 'common spaces' agreed at the November 2003 Summit (covering: economy; freedom, security and justice; external security; research and education). The Commission wants the Action Plan ready to be discussed at the EU-Russia Summit in May.

The Commission's Communication was welcomed by the External Relations Council on 23 February, at which participants 'had a thorough discussion and assessed all aspects of EU-Russia bilateral relations.' Amongst other things, Ministers agreed that, in its future dealings with Russia, 'the EU will clearly identify and present its interests, objectives and priorities. It will promote increased coherence across all areas of cooperation through the adoption, when appropriate, of common positions.

A few days later, the European Parliament adopted an own-initiative report on EU-Russia relations, which recommended that the European Council should revise its policy on Russia according to the following objectives:

  • ensuring good neighbourly relations by appropriate border management and better cross-border cooperation in the fight against crime and illegal migration
  • promoting human rights, democracy, independent media, the development of civil society, the rule of law and transparency
  • cooperating in resolving the conflicts in the south Caucasus and encouraging disarmament and non-proliferation
  • exploiting the potential for increased trade, including in energy products
  • supporting efforts to improve public health and other aspects of social development in Russia

Parliament also emphasised the need to ensure that the Union's partnership with Russia 'is based to a greater degree on respect for shared values' and that 'no exceptions should be allowed to this rule' (see: Firm and consistent policy needed towards Russia).

Speaking to Parliament during its debate, External Affairs Commissioner Chris Patten said 'There are positive elements to the relationship. But, overall, we have to accept that the results of five years of increasingly intensive co-operation are not as positive as we expected, and we have to do something about that' (see: Chris Patten: EP Plenary Debate on Russia). Of particular interest was his summary of the External Affairs Council, at which:

'Ministers recognised the need for the EU to change the way in which it does business with Russia, to become more 'joined up', to use bureaucratic terminology. It was agreed that the EU should establish clear, agreed objectives and positions ahead of every meeting with Russia. If we wish to build what can honestly be described as a strategic partnership, EU messages must be balanced and coherent, and our ambitious political declarations must be matched by progress on substance.

This requires better co-ordination between policies defined at EU level and the approach of individual Member States to relations with Russia. Why, for example, is it that the EU subscribes to joint statements with Russia, in which we agree to step up co-operation on crisis management, yet the EU is unable to convince Russia to work with it to resolve the very real problems in Moldova and the Southern Caucasus? Why, in addition, do we see individual Member States agree to facilitate visas for Russia, at the same time as Russia is blocking conclusion of a re-admission agreement?'

Russian elections

An exit poll suggested that President Putin had been returned to power with 69% of the vote following the election on 14 March (see BBC: Russia's Putin sweeps to victory). The fact that his victory was assured will not have comforted those in the EU who worry that Russia is moving away from democracy.

The December 2003 parliamentary elections were said by the Organization for Security and Cooperation in Europe (OSCE) to have favoured the pro-Putin winning party, United Russia, which had benefited from preferential media coverage. In the words of the Financial Times, Mr Putin 'barely even pretends to support real democracy any more ... [and] launched his re-election campaign with a 30-minute speech that in the best Soviet tradition was broadcast on state television several times' (see: Putin's poll position).

Mr Putin's four years in power have, said the Financial Times, 'restored the power of the security services', with the siloviki - members of the security services, police, prosecutors and the military - being given important political positions. In Russia still has the attributes of a democracy but, managed by the siloviki, this could become illusory, the FT identifies three main areas where their influence could effect the EU's interests:

  • Chechnya, where 'Russia's military would see any peace process as a loss of face'
  • foreign policy, where 'the undertones of the cold war ... will become louder. In a policy that bears the hallmarks of the siloviki, Russia has been delaying the withdrawal of its troops from Georgia, where they have been stationed since Soviet days. It has also rebuked the European parliament's concern about human rights abuses in Chechnya as interference in Russia's domestic affairs'
  • business, where 'the siloviki can keep most Russian oligarchs in fear of prosecution' (a lack of confidence in the business environment was also apparent in a survey reported in the FT, which warned that the positive impact of then $6bn investment in Russia by the bRitish oil company BP 'had been overshadowed by the dramatic arrest of Mikhail Khodorkovsky' and that investors were concerned about 'justice, corruption and the importance of Vladimir Putin to Russia's future' - see: Yukos affair undermines confidence).

Why is Mr Putin so popular? An article in European Voice suggested that 'Young people liked his cool, tough image: a mixture of Batman and James Bond' (see: Chechnya set for key role in EU's more aggressive and coherent stance towards Russia), while the BBC's view was that 'partly through luck, partly through good judgement, under Mr Putin's presidency the Russian economy's improved and living standards for millions have risen' (see: Russia's love affair with strong leaders).

Further information within European Sources Online

European Sources Online: In Focus

19.05.01: EU-Russia relations, May 2001
31.05.02: Russia strengthens its ties with the West, May 2002
21.07.03: Russia urged to ratify Kyoto Protocol, July 2003

European Sources Online: Financial Times

20.01.04: Putin aide looks to market reform to help poor
27.01.04: Powell concerns over Russian democracy
02.02.04: Russia seeks to safeguard its interests after EU expands
05.02.04: Critics see no room for dissent in new Duma
09.02.04: Moscow's threat to leave treaty shocks west
12.02.04: 'Without freedom this country has no future'
13.02.04: Putin launches presidential election campaign
16.02.04: Putin's poll position
17.02.04: EU commissioner under attack on Kyoto
23.02.04: An enigma but still alluring to investors
23.02.04: EU admits flaws in relationship with Russia
23.02.04: Moscow offer on pact with Brussels
23.02.04: Yukos affair undermines confidence
24.02.04: 'Russia still has the attributes of a democracy but, managed by the siloviki, this could become illusory'
24.02.04: West sends mixed signals to Moscow
25.02.04: Facing Russia down
25.02.04: Putin sacks cabinet 18 days before election
26.02.04: Energy chief challenges EU on Kyoto
26.02.04: The wayward logic of Europe's neighbour
27.02.04: Prodi stands by EU Kyoto policy
01.03.04: Moscow warns NATO away from the Baltics
02.03.04: The president's man

European Sources Online: European Voice

11.12.03: 'Delicate task' ahead for Irish presidency after Russian vote
12.02.04: Secret memo demanded tougher stance over Russia
19.02.04: Chechnya set for key role in EU's more aggressive and coherent stance towards Russia

Further information can be seen in these external links:
(long-term access cannot be guaranteed)

EU Institutions

European Commission

09.02.04: Communication from the Commission to the Council and the European Parliament on relations with Russia (COM(2004)106)

DG Press and Communication

Press releases
  09.02.04: Commission calls for the strengthening of EU-Russia relations [IP/04/187]
Speeches
  26.02.04: Chris Patten: EP Plenary Debate on Russia, European Parliament [SPEECH/04/99]

DG External Relations

The EU's relations with Russia
Joint statement, 12th EU-Russia Summit, November 2003

Council of the European Union

23.02.04: External Relations Council - Brussels, 23.02.2004

European Parliament

Daily Notebook
  26.02.04: Firm and consistent policy needed towards Russia

Media organisations

BBC News Online

08.12.03: Pro-Putin party triumphs in poll
08.12.03: US shares Russia poll concerns
10.12.03: Russia 'blasts Nato encroachment'
20.01.04: Europeans 'can save climate pact'
26.01.04: New chill hits Russia-US relations
26.01.04: Putin plays down disputes with US
03.02.04: Russia's economy picks up speed
19.02.04: Gas deal in bitter Belarus row
24.02.04: EU warns Russia over trade pact
01.03.04: Business ponders new Russia PM
10.03.04: Russia to raise language concerns
10.03.04: Russia's new cabinet - key appointments
11.03.04: Can Putin keep Russia bubbling?
12.03.04: Russia's love affair with strong leaders
14.03.04: Russian turnout hits crucial 50%
14.03.04: Russia's Putin sweeps to victory

Eric Davies
Researcher
Compiled: 15 March 2004

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