EU-RUSSIA SUMMIT: (BRUSSELS, 15 December 2011)

The European Union and Russia are not only neighbours, but also strategic partners.
At the upcoming summit, the EU will be represented by Herman Van Rompuy, President of the European Council, and by José Manuel Barroso, President of the European Commission. Catherine Ashton, High Representative of the Union for Foreign Affairs and Security Policy, will also take part. Russia will be represented by Dmitry Medvedev, President of Russia. Foreign Minister Sergey Lavrov will also participate.

The summit will take place over two days, beginning with an informal dinner on 14 December and continuing with a plenary session on the morning of 15 December, followed by a working lunch and a press conference.

The parties are expected to discuss the following issues:

• the global economy and global governance issues;
• EU-Russia relations;
• regional and international issues, including the developments in North Africa, the Middle East, Iran and the Southern Caucasus.

The summit will welcome Russia's WTO accession, which is due to be formally approved at the WTO ministerial conference the following day. In this context, leaders will also welcome agreements reached on Siberian overflight charges . Concerning the overflight royalties for routes to Asian destinations, a political agreement has been reached on their phasing out. As of 2014, all charges shall be cost-related and be paid to the responsible authorities.
In addition, leaders will take concrete steps to facilitate the mobility of citizens: The summit will launch the implementation of common steps towards visa-free short-term travel for Russian and European citizens: It is a list of actions for both the EU and the Russian Federation to implement in preparation for visa-free travel for short-term stays. These concern document security, for example the introduction of biometric passports; combating illegal immigration and border management; public order, security and judicial cooperation,  including the fight against transnational organized crime, terrorism and corruption.

The Summit will welcome good progress made in negotiations on an upgraded visa facilitation agreement, which we expect to finalize in January: This renegotiated version of an agreement dating from 2007 will enlarge the categories of citizens that can benefit and bring it in line with the EU Visa Code.
The summit will also welcome the extension of the local border traffic regulation for citizens of Kaliningrad: This means that citizens from the entire oblast of Kaliningrad as well as a specific border area on the Polish side can benefit from visa-free travel to one another. Previously, this facility did not apply to the entire Kaliningrad region.

A growing economic relationship
Economic ties between Russia and the EU have grown substantially over the last years. Russia remains the EU’s third most important trading partner in goods (after the US and China), with 87 billion EUR in exports to Russia (6.4% of all EU exports, 4th place after US, China, Switzerland) and 158 billion EUR in imports in 2010 (10.5 % of all EU imports, 3rd place after China and US, mostly natural resources). The EU is thus by far the largest market for Russian goods.
In 2010, both imports and exports rose by approximately 32 % compared to 2009, after having been hit by the global economic crisis. Russia’s total account surplus rose by 47% compared to 2009 and reached $ 79 billion in 2010.
More specifically, Russia is the EU’s most important single supplier of energy products, accounting for over 23% of the EU consumption of gas and 30% of its total crude oil consumption. In turn, Russia’s economy remains highly dependent on the export of energy raw materials, with the EU as its most important destination. In 2010 63% of Russia’s exports consisted of crude oil, oil products and natural gas. The EU accounts for 88% of Russia's total oil exports, 70% of its gas exports and 50% of its coal exports.

Financial cooperation
Financial cooperation with Russia began in the early 1990s, under the TACIS program, which has in the meantime been replaced by the European Neighbourhood and Partnership Instrument. To help smooth Russia’s transition, a whole range of sectors were supported. Since 1991, a total of around €2.8 billion of assistance was provided through the European Commission. A number of TACIS projects are still being implemented until 2013.
Given the significant recent improvements in the Russian Federation’s fiscal position, the need for large volumes of financial assistance has declined. In fact, Russia herself has become a donor. Financial cooperation is now specifically targeted to meet the objectives defined in the road-maps to the EU-Russia Common Spaces. Cooperation is now carried out on the principle of co-financing by the EU and Russia. Most notably, Russia is co-financing Cross Border Cooperation programmes.
Emphasis is on higher education cooperation, with Erasmus Mundus and Tempus supporting mobility of students and teaching staff.
Furthermore, funding for Russia also came from the Nuclear Safety Instrument (€500 million since 1991) and a number of other thematic programs. The European Democracy and Human Rights Instrument (EIDHR) financed 14 human rights projects in Russia in 2010 for nearly € 2 million, and the Institution Building Partnership Programme supported 16 projects with NGOs for a total of € 5 million.

EU-Russia relations - background
The legal basis for EU relations with Russia is the Partnership and Cooperation Agreement (PCA) which came into force on 1 December 1997 for an initial duration of 10 years, and which has been automatically extended beyond 2007 on an annual basis. It sets the principal common objectives, establishes the institutional framework for bilateral contacts, and calls for activities and dialogue in a number of areas.
The EU is currently working with Russia on a new agreement to replace the PCA. Both the EU and Russia have experienced many political, economic and social changes since the entry into force of the PCA in 1997. The new agreement must reflect these changes as well as the new challenges linked to the globalised world in which we are living.
Since 2005 the EU and Russia have held regular, six-monthly human rights consultations. They have provided for a substantial dialogue on human rights issues in Russia and the EU and on EU-Russian
cooperation on human rights issues in international fora.

The EU has raised with Russia issues including the human rights situation in Chechnya and the North Caucasus; freedom of expression and assembly, including freedom of the media; the situation of civil society in Russia, notably in light of the laws on NGOs and extremist activities; the functioning of the judiciary and its independence; the observation of human rights standards by law enforcement officials; racism and xenophobia; legislation relating to elections. For its part the Russian side raises matters of concern to it in developments inside the EU.
At the St. Petersburg summit in May 2003, the EU and Russia agreed to reinforce their cooperation by creating four "common spaces":

• the Common Economic Space aiming to make the EU and Russia’s economies more compatible to help boost investment and trade;
• the Common Space on Freedom, Security and Justice covering justice, home affairs, the rule of law and human rights;
• the Common Space on External Security aiming to enhance cooperation on foreign policy and security issues; and
• the Common Space on Research, Education and Culture aiming to promote scientific, educational and cultural cooperation.

Source: www.european-council.europa.eu

Conclusions on the customs cooperation with eastern neighbouring countries

"THE COUNCIL OF THE EUROPEAN UNION NOTING THAT:

The European Neighbourhood Policy, the Eastern Partnership and the EU-Russia Partnership for Modernisation are priorities of the European Union aimed at establishing an institutional framework for a closer political and economic cooperation between the EU and its Eastern Neighbour countries;

HAVING REGARD TO:

• the Partnership and Cooperation Agreements concluded between the EU and its Member States and Armenia, Azerbaijan, Georgia, Kazakhstan, the Republic of Moldova, Russia and Ukraine;
• the Council conclusions on the European Neighbourhood Policy adopted by the Council on 20 June 2011;
• the strong commitment of the EU and its Eastern European Partners to further enhance the political association and economic integration which is confirmed by the Eastern Partnership and the negotiations of association and Deep And Comprehensive Free Trade Areas (DCFTA); 
• the Joint Declaration of the Eastern Partnership Summit in Warsaw, 29-30 September 2011 concerning in particular the agreement to further enhance the cooperation in the areas of integrated border management, fight against drugs, organised crime and corruption; 
• Strategic frameworks for customs cooperation with Russia and, when endorsed, with Belarus, the Republic of Moldova and Ukraine; 
• the conclusions of the meetings on Customs Cooperation at the Eastern Border of the EU, in particular the High Level Seminar held in Budapest on 14-15 April 2011 and  the High Level Seminar “Towards better cooperation” held in Cracow on 19-21 October 2011;  
• the Commission Action Plan to fight against smuggling of cigarettes and alcohol along the EU Eastern border
• the Council conclusions on a strategy to prepare certain neighbouring countries for accession to the 1987 EC-EFTA Conventions on a common transit procedure and the simplification of formalities in trade in goods;  
• the ongoing European Union efforts to combat the smuggling of highly taxed goods, in particular the large scale investigations coordinated by the European Anti-Fraud Office (OLAF), the Agreements concluded by the EU and Member States with tobacco manufacturers, the regional and cross-border measures under the Eastern Partnership, the European Neighbourhood and Partnership Instrument as well as the role played by the EU Border Assistance Mission (EUBAM)

WITH A VIEW TO FOCUSING ON THE FOLLOWING PRIORITY AREAS OF COOPERATION AS AGREED IN BUDAPEST AND IN CRACOW:

• developing safe and fluid trade lanes;
• promoting risk management and the fight against fraud;
• investing in customs modernisation in the region; 

INVITES THE COMMISSION AND THE MEMBER STATES TO COOPERATE WITH THE EASTERN NEIGHBOURING COUNTRIES WITH A VIEW TO:

1.  Develop safe and fluid trade lanes, in particular by:

• giving support to the countries in the region in their preparations for the extension of the Common Transit Convention and the Convention on the simplification of formalities in trade in goods which are powerful instruments for trade facilitation, for increasing the harmonisation of procedures and to convey economic integration;
• considering assistance in the development of reliable and compatible authorised economic operators systems in the Eastern neighbouring countries and later on the mutual recognition thereof;
• enhancing coordination at the border including the creation of fast lanes and the development of infrastructure where applicable;
• supporting initiatives of Member States that facilitate speedy transportation of goods through the EU Eastern border. 

2.  Promote risk management and the fight against fraud, in particular by:

• cooperating in developing and improving risk management systems and methods of risk analysis, including in order to increase the performance in the application of security and safety measures and to prevent smuggling of highly taxed goods and valuation fraud; 
• developing exchanges of information on a sound legal basis to facilitate trade and strengthen risk management, beginning by studying needs, building on the experience of past and current schemes of information exchange such as pilot projects;  
• organising joint actions targeting risk areas and/or identified illicit trade routes in the region; 
• stepping up actions to fight against smuggling of cigarettes and alcohol along the EU Eastern border; 
• launching a study to identify the information useful to exchange and the ways of transmission, to strengthen risk management and improve customs controls with the view of establishing safe and fluid trade lines as well as fighting fraud.

3. Foster customs modernisation, in particular by:

• assisting the countries in the region in capacity building, including development and implementation of customs modernisation strategies;  
• cooperating to facilitate convergence of customs legislation and procedures in line with the objectives of free trade area agreements currently negotiated or foreseen. 

4. Explore the possible use of available assistance mechanisms for these purposes, such as: 

• Customs 20133and its successor programme;
• Hercule II and its successor programme;
• Twinning and other assistance projects;
• Programmes for regional and trans-border cooperation;
• EU Border Assistance Mission.

5. Seek to prepare and adopt the Strategic Frameworks as instruments to strengthen the customs cooperation with Armenia, Azerbaijan and Georgia.

6. Continue the dialogue between the EU and Eastern neighbouring countries by setting up regular dedicated customs fora.

INVITES THE COMMISSION TO:

• evaluate the progress achieved in the agreed priority areas;
• report to the Council on the progress in order for the Council to propose a follow up to the above actions by the end of 2013."

 Source: www.consilium.europa.eu

Back in the USSR

Aflevering 1: Back in the USSR

1. Rusland, voor de staatsgreep
Het eerste hoofdstuk vertelt de gebeurtenissen op 21 augustus 1991, de dag van de staatsgreep door de communistische conservatieven. Een historische dag voor Rusland en voor de hele wereld.

2. Na de Coup
Een terugblik op de woelige jaren '90 in Rusland. Er was dan wel meer vrijheid, maar geen brood op de plank.

3. Het land boert achteruit
Het geloof in de hervormingen van president Jeltsin verminderde snel. Zijn maatregelen om naar een vrijer economisch model over te schakelen, zorgden voor veel miserie bij de gewone mens. Jeltsin viel langzaam door de mand.

4. Poetin en Oligarchie
Vladimir Poetin volgt in 2000 Jeltsin op als president. De ex-KGB man wordt daarmee de tweede president van de Russische Federatie. VRT-journalist Johan Depoortere was erbij toen hij zijn eed aflegde.
Oligarchie: Een begrip van de oude Grieken. In Rusland kwam het in gebruik na het uiteenvallen van de Sovjet-Unie, toen een aantal zakenlui zich makkelijk verrijkte tijdens de liberalisering van de markt.

5. De tandem Poetin en Medvedev
Het blijkt ook uit de recente presidentskandidatuur van Vladimir Poetin in september 2011: Poetin en Medvedev zijn een tweespan.

6. Tsjeljabinsk
Sommige oligarchen vergaat het goed. De eigenaar van Chelpipe, een fabriek die pijpleidingen maakt in het stadje Tsjeljabinsk net onder de Oeral, is een tevreden man; èn een aanhanger van Poetin.

http://backintheussr.canvas.be

Air transport: Commission welcomes agreement on Siberian overflights

European Commission - Press release

Brussels, 01 December 2011 - The European Commission and the Russian government have agreed to modernise the system of Siberian overflight payments. From 1 January 2014, any charges EU airlines have to pay for flying over Russian territory will be cost-related and transparent. They will not discriminate between airlines. The agreement is set out in an exchange of letters between Russian Economic Development Minister Ms Elvira Nabiullina, on the Russian side, and Vice-President Siim Kallas and EU Trade Commissioner Karel De Gucht for the Commission. The agreement will enter into force on 1 January 2012 after the WTO Ministerial Conference has given its green light to Russia's WTO accession, which is expected to happen on 16 December 2011.

Currently, EU air carriers are obliged to pay for flying over Siberia on flights to destinations in Asia. It is estimated that these payments cost around €320 million per year – most of it going directly to Aeroflot. The EU has long been concerned that these payments are in breach of both EU antitrust law and international law (Chicago Convention). Moreover, they drive up airline costs unfairly, making air tickets from Europe to destinations in Asia more expensive and distorting competition between airlines on these markets. They also create an additional burden on trade relations between the EU and Asia.

The basis for today's agreement was prepared in 2006, based on a set of "Agreed Principles", but will only now enter into force.

Commission Vice-President Siim Kallas highlights the importance of this break-through in EU-Russia aviation relations: "Siberian overflight royalties have for decades been the single most important obstacle for further developing EU-Russia aviation relations to the detriment of airlines and passengers. Today's agreement is therefore a very important milestone towards strengthening closer cooperation in many areas of aviation. Igor Levitin, the Russian Minister of Transport and I agreed on this during the recent EU-Russia Aviation Summit in St. Petersburg and we have worked very closely with the Polish Presidency to finalise the agreement. This agreement clearly reflects the positive spirit of St. Petersburg! We now look forward to its swift implementation."

Commissioner Karel De Gucht underlines the importance of this agreement for Russia's WTO-accession: "The clear commitment we received from Russia to make charges for flying over Siberia cost-related, transparent and non-discriminatory helped pave the way for the EU to support Russia's accession to the WTO. Both of these developments are very good news."

Next steps
Russia and EU Member States have until 1 July 2012 to modify their bilateral Air Services Agreements in order to fully implement the "Agreed Principles".

For more information on EU-Russia aviation relations:
MEMO/11/695
MEMO/11/167