Friday, June 26, 2009

FLASH BACK

On the occasion of the EU-RUSSIA SUMMIT held in Moscow on 29 May 2000 (9 years ago), a joint statement was issued by both sides including The President of the European Council assisted by the The Secretary General of the Council/The High Representative for Foreign and Security Policy of the EU, the President of the Commission of the European Communities and the President of the Russian Federation. Basically,

Both the leaders of the European Union and the Russian Federation reaffirmed the importance they attach to the development of their relations in all areas. The partnership and the reinforced political dialogue aimed at promoting a stable and prosperous Europe, based on the principles of democracy, respect for human rights, the rule of law and the market economy.

The Russian side emphasised that developments in Russia supported by the Russian people confirm its European vocation, and that Russia is and will remain a constructive, reliable and responsible partner in working towards a new multipolar system of international relations, based on strict implementation of the international law.

Both sides confirmed the fundamental importance of the PCA and the subsequent Strategies adopted by the Parties for their relations in order to promote a steady and dynamic development in cooperation between Russia and European Union, including in the areas of economy, finance and science and technology. In this context both sides noted some of the highlights of activity now underway, for instance, in the fields of science and technology, in the field of satellite applications for air navigation and radio communication purposes (GLONASS/GALILEO) as well in the domains of nuclear power and safety issues, and transport. Both sides also agreed on the need to cooperate further in developing educational exchanges and training activities.

Both sides set out their priorities in implementing the above-mentioned Strategies. Russia saw these priorities in the areas of ensuring security in Europe, trade, investment, science and technological and cross-border cooperation, collaboration in fighting organised crime and in contacts with the EU in the sphere of its common foreign and security policy.

In their wide-ranging discussions both sides considered ways of giving additional momentum to Russia-EU cooperation with the aim of achieving concrete results. They declared that further steps would be necessary to encourage contacts between their political, parliamentary, business, public and academic circles, between their civil societies and their young people. In this, as well as in the development of regional ties, initiatives in the framework of bilateral cooperation between the Russian Federation and individual EU Member States would be of great significance.

In the end both sides agreed that their talks in Moscow had shown the great potential for cooperation and that they had made an important step towards effective use of this potential in the long-term interests of the Russian Federation and the European Union, but also in the interests of all peoples of Europe.

The point of this “Flash Back” is to show that both sides had established solid grounds for cooperation nearly 10 years ago.

Since then and taking as an example energy cooperation relations between both sides have been marked by ambiguities. For the EU, energy security means guaranteeing its supplies, so it insists Russia opens its market to EU investors to ensure maximum production and low prices. For Russia, energy security means guaranteeing its exports at the best price. The Russian government does not rule out foreign investment, but considers the energy sector too important to be left to market forces alone. It wants to conserve Russia’s reserves and participate in the whole chain of production and distribution, including distribution in Europe, where the greatest profits are to be made. This has quickly become a political issue. The idea that a country should be able to establish state control over energy has been anathema to the apostles of free enterprise, especially as the idea is likely to catch on.

Pundits in Brussels argue that Russia needs European capital just as much as the EU needs Russian gas. They forget that Russia has no intention of submitting energy to the laws of the market alone and that there is a difference between consumer countries and a producer country courted by a power such as China, which is prepared to pay a high price to secure its energy future.[ Ties between Moscow and Beijing have warmed in recent years after a period during the Cold War when the two giant neighbours were rivals for supremacy in the Communist world. Last year the two countries signed a landmark deal to build a pipeline connecting Siberian oil fields to energy-hungry China . Beijing has been eager to obtain greater access to Russia’s immense energy resources].

In tomorrow’s world dominated by the emergence of China, partnership with Russia could be one of the EU’s best cards.