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Russia-EU ties — a time of change

Nikolai Kaveshnikov

The Europeans have accepted in principle the Russians' initiative to replace the 1994 Partnership and Cooperation Agreement.

THE BIGGEST achievement at the Russia-EU summit was not understanding on specific matters, but the Europeans' acceptance in principle of Russia's initiative to formulate a comprehensive agreement that would replace the 1994 Partnership and Cooperation Agreement (PSA). "An updated legal basis corresponding to modern realities is required," said Russian President Vladimir Putin, commenting on the outcome of the summit.

The 1994 agreement no longer corresponds to present-day realities, above all current relations between Russia and the European Union. Back then, having just started the creation of a market economy, Russia suffered a severe economic crisis. Today, Russia has a stable market economy, which for all the structural imbalances demonstrates a high growth rate.

The European Union has changed too. In 1994, it comprised 12 countries, which had just drawn up a programme of establishing an economic and currency union and were making the first attempts to pursue a common foreign policy.

Today, the EU includes 25 countries. It has a common currency and has worked out a concept of a common foreign policy and security. The EU has created instruments for implementing these policies and it has gained considerable experience in doing so.

However, as the countries of Central and Eastern Europe joined the EU, it entered a period of profound and painful transformation. Contradictions within the Union intensified, as revealed by difficulties involved in the ratification of the EU constitution and differences of opinion as regards the future development of the EU.

The PSA was an important agreement for its time. It set a new political framework for relations between Russia and the EU, and formulated a principle of strategic partnership. Though largely declarative, this partnership created a general favourable background for the development of relations. A system of joint institutions based on PSA concepts is functioning quite effectively. Contacts within these institutions have been gradually increasing mutual trust. Following the agreement, several important accords have been signed — on police cooperation, cooperation in science and technology, a multilateral programme of nuclear security.

In May 2005, the roadmaps for four "common spaces" were signed. Though they are nothing more than a declaration of intent and contain too many general words, still they charted a direction for further cooperation.

But the past years have also revealed many shortcomings in the PSA wording. In the first place, formally covering three spheres — economics, politics and culture — the PSA devotes little attention to the latter two.

The political dialogue that is really going on concerns numerous subjects not mentioned in the agreement. The format of this dialogue has changed after the creation of the EU-Russia Permanent Partnership Council.

With regard to trade, the PSA copies the GATT-WTO provisions. During the early 1990s it was an important step forward, but in a couple of years, after Russia joins the WTO, this part of the agreement will loose all meaning.

More importantly, the chief purpose of the agreement — to assist Russia in carrying out economic and political reforms — has become outdated.

Today, Russia-EU relations are based on the principle of cooperation between equal partners and partial integration in some sectors of the "common spaces."

Relations between Russia and the EU have turned into a series of ambitious project proposals and tough bargaining over a multitude of specific issues.

This new agreement will help define areas of practical cooperation on the basis of common or close values. — RIA Novosti

(The writer is Senior Researcher with the Institute of Europe, Russian Academy of Sciences.)

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