But is Russia the right bear to hug?

Opening the European Studies Institute in Moscow on 23 October, European External Relations Commissioner Benita Ferrero-Waldner spoke of its role in "deepening relations between the EU and Russia by creating a pool of expertise and knowledge about each other".

She was certainly right to emphasise the importance of greater mutual understanding, because without some basic degree of trust between the EU and Russia, moving to a new level of relations will prove difficult if not impossible.

Understanding and trust have been largely absent during the past decade which partly explains why both sides have been disappointed by the 1997 Partnership and Co-operation Agreement (PCA). The renewal of the PCA, or its replacement by a broader agreement, provides a golden opportunity to review EU-Russia relations and establish the basic principles for future co-operation.

In recent months there has been much talk of a divided EU focusing exclusively on bilateral energy deals. But there are signs that member states may be starting to realise the benefits of speaking with one voice towards Russia. And there are also encouraging signs that some European politicians have not forgotten the importance of values in the relationship.

Speaking at the EU summit in Lahti, Finnish Prime Minister Matti Vanhanen said: "On the one hand, there are positive things like trade and economic relations, but there is also, in the same package, democracy and human rights." Commission President José Manuel Barroso and his team have also been stressing the importance of values as much as energy in dealing with Russia. But how will the leaders of the ‘Big Three’ in Europe - the UK, France and Germany - react when it comes to the crunch?

What are the options to replace the PCA? Basically there are three options: extending the existing PCA, expanding its mandate, or replacing it with a more comprehensive document. Each option involves different ratification procedures that could complicate the outcome. A comprehensive mixed-pillar agreement could take more than two years to ratify, assuming all 27 national parliaments and the European Parliament agreed.

It will not be easy for the EU to agree a mandate for the negotiations. Not only are there differing views between the member states, but the Council of Ministers is also likely to want a slice of the negotiating action, on second- and third-pillar issues. The nature of the new agreement could have a significant bearing on the content, including any commitments to shared values.

There are some who argue that the value gap is now too big and that the EU should quietly drop any references to democracy, the rule of law and human rights. This would be a major mistake. Of course one can have no illusions about the nature of the current regime in Moscow. But governments change - values do not. Just as the Organization for Security and Co-operation in Europe (OSCE) commitments encouraged and inspired central and east European democrats such as Václav Havel in the 1970s and 1980s, so too could a new EU-Russia agreement, based on shared values, keep the democratic flag flying in Russia.

Hitherto it has been the Parliament that has been at the fore in pushing for a values-based approach towards third countries. This approach is likely to be maintained. The real problem lies in the member states. It is especially disappointing that some of the old member states that have a long tradition of supporting democracy and human rights or which have thrown off dictatorships in the past 40 years seem so reluctant to push these values in dealing with Russia. A democratic Russia, respecting human rights and with institutions firmly anchored in the rule of law, is the best long-term partner for the EU.

• Fraser Cameron is director of the EU-Russia Centre.

Opening the European Studies Institute in Moscow on 23 October, European External Relations Commissioner Benita Ferrero-Waldner spoke of its role in "deepening relations between the EU and Russia by creating a pool of expertise and knowledge about each other".