Union seeks to use summit to influence Russian reforms

Date: 25/05/2000

By Simon Taylor

The EU's first formal meeting with new Russian President Vladimir Putin next week will be marked by high expectations but mismatched priorities.

The Union team, led by Portuguese Foreign Minister Jaime Gama, is eager to see Putin implement a new economic reform strategy which would strengthen the rule of law in Russia, tackle corruption and improve the environment for international investment.

But Moscow is more anxious to capitalise on the new opportunities offered by Putin's election to cement political cooperation with the EU and put behind it the problems caused by divisions over the NATO campaign in Kosovo and the outcry against Russia's treatment of civilians and refugees in Chechnya.

EU diplomats say the summit in Moscow next Monday (29 May) will give the Union a chance to influence Putin's thinking as he forms a new cabinet and finalises Russia's new economic strategy, expected in the near future.

Union governments are keen to see the country strengthen state structures such as its tax collection authorities and judiciary to create a more favourable environment for foreign investment and clamp down on corruption. Despite a surprisingly strong growth rate of 3.2% in the Russian economy, thanks to the rise in oil prices, it still needs investment flows to modernise its industries and improve competitiveness. Russia's Deputy Finance Minister Sergey Koltukhin told last weekend's meeting of the European Bank for Reconstruction and Development that Moscow was hoping to attract more than €20 billion in foreign investment a year once the new economic strategy has been approved.

As a sign of improved economic cooperation, Russian officials say the summit could announce the creation of a round table of business people from the EU and Russia which would come together at regular intervals to discuss subjects of mutual interest.

But for Russia, the priority is to strengthen political cooperation with the Union in a bid to boost what Moscow sees as a 'multi-polar' world in which it is a major player.

Russia's Ambassador to the EU Vasily Likhachev said it was no coincidence that next week's summit would be followed by the EU-US meeting two days later and US President Bill Clinton's visit to Moscow on 3 June. "This is the logic of how Russia sees international relations. The world is multi-polar, with both the EU and Russia looking for a new image," he said.

Moscow has been pushing the Union to agree a joint common strategy on international issues based on the two sides's approach to their bilateral relations. "The two strategies are very close, with about 60% convergence between them," said Likhachev. He highlighted agreement on the fight against organised crime, regional cooperation under the Northern Dimension and other initiatives, and work in the United Nations and the Organisation for Security and Cooperation in Europe.

But he admitted that there was little enthusiasm in the EU for formulating a joint approach, although he stressed that "Russian diplomacy is prepared to follow the path of common initiatives", adding that he hoped that the summit would give a new impetus to the process.

Likhachev said Moscow still had a number of reservations about the Union's enlargement process, including concerns about the economic impact on Russia when some of its neighbours become members of the EU. "In the spirit of the strategic partnership it is very important to elaborate schemes which will not reduce the volume of trade the EU and Russia and the countries which join the Union," he said.

Likhachev also criticised the Czech Republic's decision to introduce a visa requirement for visitors from Russia. "This is a new situation for the Russian people not only from a legal but only from a psychological point of view," he added, warning that Russian tourists could opt instead to go to Cyprus, damaging the Czech tourism industry. "We know that the tourist business in the Czech Republic is very prosperous due to Russian tourists," he said.

Preview of EU-Russia Summit, Moscow, 29.5.00. The EU's first formal meeting with new Russian President Vladimir Putin will be marked by high expectations but mismatched priorities.