WHAT ARE THE MAIN FACTORS THAT WILL INFLUENCE THE EVOLUTION OF RELATIONS BETWEEN THE RUSSIAN FEDERATION

AND THE EUROPEAN UNION? The relationship between Russia and European Union goes back a long way. After the fall of the Berlin Wall in 1989, the disintegration of the Warsaw Pact, the decline and the collapse of Communism, the reunification of Germany and the end of the Soviet Union, turn Russia into a Western Style Democracy, allowing the EU to develop the same kind of relationship with Russia that it has with the US or Japan. The Partnership and Co-operation Agreement (PCA), in force since December 1997, provides a political, economic and cultural framework for relations between Russia and EU. It is primarily concerned with promoting trade, investment, and harmonious economic relations. They created, in the long term, four common spaces for cooperation in different spheres: 1) Common economic space 2) Common space of freedom, security and justice 3) Common space on external security 4) Common space on research, education and culture Nowadays, EU considers Russia as an important market for European exports, a major military power, an important player in international relations and a permanent member of UN council, a vital supplier of energy and one of the worlds two biggest nuclear powers.

Common economic space The objective of the common economic space is to create an open and integrated market between Russia and EU. In Soviet Times there was very little trade between the two. At the present time, the Eu and the Russia have a strong trade relationship: bilateral trade and investment continue to grow rapidly.

The Eu is Russias main trading partner, accounting for 52,3 % of its overall trade turnover in 2008. It is also the most important investor in Russia: it is estimated that up to 75% of FDI stocks in Russia come from the EU member states. Economic common space is intended to remove barriers to trade and investments and promote reforms and competitiveness, based on the principles of non discrimination, transparency and good governance.

Common space of freedom, security and justice This common space is based on cooperation on combating terrorism and other forms of international illegal activities, fighting against drugs and trafficking in human beings. The EU support to border management and reform of the Russian Judiciary system are among the highlights of this space.

Common space on external security They will give particular attention to securing stability in the regions adjacent to Russian and EU borders. They will support the central role of the UN and they will strengthen their cooperation against terrorism, the proliferation of weapons of mass destruction (WMD).

Common space on research, education and culture Russia participate in EU Research, education and cultural field development activities such as Tempus programme.

Nowadays, the relations between Russia and EU are dominated by 2 factors which are in contradiction. EU needs a close relationship with Russia both politically and economically but, at the same time, Russia is not considered a real democracy based on respect of
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human and civil rights: this relationship is based on convenience rather than conviction. Firstly, Russia is considered an important market for EU export: Russia is Europes main gas supplier and an important oil supplier and a market for EU luxury goods and this has created a real economic interdependence. EU is trying to reduce the interdependence between the two building new pipelines and trying to gain access to resources outside the Russias control and to diversify suppliers and to developing new greener energy sources. Secondly, we have to take into account that Russia is a major military power. In the last twenty years many formers soviet satellite states have joined Nato and EU as a guarantee of their independence from Russia. This has been seen by Russia as aggressive and an attempt to reduce Russias sphere of influence. Russia also intends to protect ethnic Russian minorities in countries like Ukraine and Georgia. Russia have to confront with growing separatism and Islamic fundamentalism in its federated republics such as Chechnya and independent allied republics Azerbaijan and Turkmenistan in the Caucasus.