Russia, EU agree on breakthrough deal
(Agencies)
Updated: 2005-05-10 17:00

Russia and the European Union announced a breakthrough agreement on political and economic relations on Tuesday aimed at defusing years of tension that accompanied the bloc's expansion to Russian frontiers.

The two sides reached agreement on recasting their trade and political ties in a treaty covering four areas ranging from the economy to external security, the Russian Foreign Ministry said in a statement.

They also agreed to hold consultations on easing visa regulations and eventually allowing visa-free travel between the two blocs, said the statement.

Both sides also agreed to discuss arrangements for Russia to take responsibility for the repatriation of illegal immigrants who have left Russia to seek entry into the European Union, in accordance with EU practice.

The two have shared a border in several places since the EU's expansion a year ago to include a string of Baltic and East European nations, formerly part of the Soviet sphere of influence.

"I think this summit will give a new impulse to our relations," said European Commission President Jose Manuel Barroso on Monday.

EU officials said the agreement provided the basis for regular cooperation on key practical issues of trade and political relations.

EU and Russian leaders began a summit shortly after the announcement and were due to hold a news conference at 1130 GMT.

The accession to the EU of countries such as Latvia and Lithuania, formerly part of the now vanished Soviet empire, has fueled unease in Moscow that former satellite states have turned their backs on Russia and now look to the west.

The pact due to be signed encompasses four key areas, known in EU parlance as "spaces" -- the economy; freedom, security and justice; external security; and research, education and science -- in which they promise to quicken the pace of cooperation.

Agreement came a day after world leaders gathered in Moscow to celebrate the 60th anniversary of the end of World War II in a spectacular show of Red Square pageantry, reminiscent of the Soviet Union's heyday as a world superpower.

The EU is Moscow's largest trading partner with over half of Russia's exports going to the bloc. Russia supplies the EU with around one fifth of its oil and gas needs.

WTO APPEAL

EU leaders are expected to appeal to Putin to seize the opportunity to finalize trade negotiations in the coming months enabling Russia to join the World Trade Organization (WTO) by early in 2006.

EU Trade Commissioner Peter Mandelson told reporters on the eve of the summit that the talks were "creating a possibility of final entry in early 2006."

Russia is the largest trading nation still outside the WTO.

"Russia needs to take advantage of a window between now and the summer to get the accession tied down," he said.

But Mandelson said Putin should step in to ensure better coordination between ministerial departments on the Russian side, so that the chance to strike a WTO deal is not squandered.

Russia has been responsive to EU demands on strengthening their ties in the weeks and months leading up to the summit.

Russian Foreign Minister Sergei Lavrov conceded in April that the EU had a key role to play in resolving "frozen conflicts" in countries such as Georgia and Moldova, which were formerly part of the Soviet empire.

Sensitivities between Russia and an EU now embracing nations that were once part of the Soviet Union were underscored by an EU statement on Friday that the fall of the Berlin Wall rather than that of Nazi Germany ended dictatorship in Europe.

For three new EU members, Estonia, Latvia and Lithuania, May 9, 1945 marked the beginning of Soviet occupation rather than a liberation. Russia for its part has accused the Baltic republics of discriminating against Russian-speaking minorities who were left high and dry after the collapse of the Soviet Union.

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