RUSSIA-EU: COOPERATION WITHOUT ULTIMATA

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MOSCOW, April 29 (RIA Novosti) - East European countries and the Baltic States will become the full-fledged members of the European Union on May 1. The EU will account for 50% of Russia's commodity turnover, the situation, which promises Russia profits, as well as financial losses in the near future. With time Russia may also grow dependent on fluctuations on European markets. What can Russia do about it? The following is an interview of Ivan Ivanov, representative of the Russian Chamber of Commerce and Industry in Benelux and France, with the Trud newspaper.

Q.: Once the East European countries have joined the EU, their dumping agricultural and textile products can flood the Russian market. Is this prospect facing Russia?

A.: Ability to withstand European competition was considered fundamental for joining the EU. However, the accession countries failed to meet this condition. Their accession was prepared hastily. This resembles a kind of political act, which demonstrates the EU's desire to pick up unwanted remnants of the former socialist bloc in Europe and, thereby, end the post-war political and economic order on the continent. Economic preparations were, therefore, not important. The industries and agribiz of the Central and Eastern Europe, and the Baltic republics are going to face very strong competition.

I think when euphoria is gone, the new EU nations' enterprises will get nostalgic about the Russian market. However, their products will be subject to Russia's current customs tariffs, which will not change with the EU enlargement. Moreover, the tariffs will remain intact within the first few years after Russia's entry to the World Trade Organisation. That is why dumping products are unlikely to flood Russia.

Q.: Russia has not signed a separate trade agreement with Eastern Europe and the Baltic countries, which are imposing restrictions on the imports of industrial products and services from Russia to meet the EU standards. What shall Russia do about it?

A.: After accession to the EU these countries will pursue the EU's trade policy, which does not envisage quantity restrictions /on imports from Russia/, except for certain types of steel. However, these are not unilateral restrictions, they have been agreed on with Russia through negotiations.

There is a more worrisome problem. Moscow provided a list of its concerns over the EU enlargement back four years ago. It was concerned, above all, about higher tariffs on some of Russian exports (natural gas, aluminium, fuel elements for nuclear power stations) and the extension of the EU's agrarian and technological competitive policy to the new member-countries. Such concerns must be discussed and settled, which is a world-accepted practice. However, the EU had shunned talks on these issues for the four years. Talks were only launched three months prior to the enlargement date, whereas Brussels is trying to dictate its conditions to Russia.

The EU insists that the Partnership and Cooperation Treaty with Russia should be tacitly extended to its new members even before Russia's concerns have been addressed. There has been talk that otherwise EU-Russia relations may deteriorate dramatically. However, Russia must not do anything that may affect its national interests. This is Russia's internal matter, which falls within the competence of Russia's parliament, rather than that of the EU bodies.

This is what Russia has warned Brussels about on may occasions. The EU is actually blackmailing Russia. Russia is posed as the EU's strategic partner in formal documents, however this is not a proper way of dealing with a strategic partner.

Q.: Why has the EU not responded to Russia's request for associated membership?

A.: Russia has never made such a request. Russia is an all-sufficient country and does not need to associate with anyone. It needs to consolidate its own statehood. Russia only claims to be part of the European economic zone. It is seeking cooperation, for example, in the energy, transport, scientific and technological spheres, in the area of healthcare, the environment and law enforcement, the latter including efforts against terrorism, etc. Russia wants this on condition that it should be treated as a strategic partner and should not encounter ultimatums.

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