Official website of the President of Russia

Moscow

May 17, 2001

1. We, the leaders of the Russian Federation and the European Union, having assembled in Moscow for the seventh Summit since theentry into force of the Partnership and Co-operation Agreement (PCA), reaffirm the special importance that we attach to the strengthening of our long-term strategic partnership based on the principles of democracy, respect for human rights, rule of law and market economy. Our aim is to foster economic growth and prosperity, social development, a clean environment and strengthened security and stability in Europe, on the basis of shared values.

2. Since the last EU-Russia Summit in Paris 30 October 2000, we have further developed and intensified our dialogue and co-operation. This has allowed us to concentrate our common agenda on a number of key priorities. These include dialogue and cooperation on security issues, stimulating trade and investment, developing cooperation in the context of the energy dialogue, reinforcing our dialogue on Justice and Home Affairs and strengthening our cooperation on environment and nuclear safety as well as in the field of science and technology. The meeting in Stockholm 23 March 2001 between the Heads of State and Government of the European Union and the President of the Russian Federation provided a new dimension to our dialogue at the highest level.

3. The progress achieved in the field of market reforms in Russia should open up major new opportunities. In this respect, Russia's efforts to pursue integration into the global economy and set the necessary competitive conditions to attract foreign direct investment are crucial. We consider that the application of the international norms and disciplines, particularly those of the WTO, and full implementation of the PCA are key elements in bringing our economies closer together.

4. We agree that a strong civil society is necessary in a modern democratic state. The continued development of independent media is a cornerstone of democratic societies. Freedom of speech and pluralism in the media are essential democratic principles and core values for a genuine EU-Russia partnership.

5. We agreed upon the need to seek a political solution in Chechnya as a matter of urgency with due regard for sovereignty and the territorial integrity of the Russian Federation. The Russian Side informed of the efforts aimed at organizing and strengthening administrative bodies, securing the rights of citizens, the social rehabilitation of the population, solving economic problems in Chechnya. We noted the work done by the experts of the Council of Europe, pronounced in favour of an early return to Chechnya of the OSCE Assistance Group. The Russian Side reaffirmed its readiness to cooperate with the EU in connection with programmes of humanitarian assistance to Chechnya.

6. We note with satisfaction the continuation of the dialogue within the PCA structures on the consequences of EU enlargement, and the desire of the Parties to address questions that arise in this context, including the movement of people, goods and services between the enlarged EU and Russia. We reaffirm that the EU enlargement should lead to an increase in the volume of economic activity between Russia and the acceding countries, as well as with the enlarged EU as a whole.

7. We welcome the positive outcome of the 2nd Ministerial Conference on the ”Northern Dimension“ and consider it important to implement specific projects within the Northern Dimension framework, including regional and cross-border cooperation and to provide them with adequate national and international financial back-up. We encourage the development of a Northern eDimension. We shall actively develop the ”Arctic Window“ and work towards more efficient co-ordination between existing co-operation structures in the Baltic Sea and the Arctic Regions, including the Council of Baltic Sea States and the Barents Euro-Arctic Council.

8. We have committed ourselves to fostering the development of the Kaliningrad region. As referred to in the Commission communication on Kaliningrad issues such as movement of people, transit of goods, energy and fisheries will need to be addressed within the PCA framework, with a view to working out practical arrangements subsequently, with due respect to the Community acquis. The involvement of future Member States in the process of finding practical solutions for Kaliningrad is important and should be encouraged.

9. We reaffirm our attachment to promoting closer dialogue and co-operation on political and security matters in Europe. We recall the general Joint Declaration and the specific Joint Declaration on Strengthening Dialogue and Co-operation on Political and Security Matters in Europe, both adopted at the EU-Russia Summit on 30 October 2000, and have agreed to deepen our partnership. We have made foreign and security policy matters a regular feature of the agendas of the EU-Russia political dialogue meetings at all levels, including at the highest political level.

10. The EU will inform Russia on developments in ESDP matters and Russia will inform the EU on the development of its security and defence policy and its implementation within the fora for political dialogue. We shall make full use of existing formats for dialogue and focus on substantive issues of common concern in the field of security policy. Meetings at the level of the senior officials will be used as a focal point to intensify the security policy dialogue, including on the work of the EU on military and civilian crisis management. We have concluded that the co-operation should continue to evolve gradually and in a structured way.

11. Crisis management in Europe as well as UN and OSCE matters have been identified as important areas of co-operation. As the European Union is improving its capacity for conflict prevention the dialogue with Russia in this field is being strengthened. The successful implementation of the decisions of the Nice European Council on the arrangements for strengthened dialogue and co-operation with Russia should lay the necessary ground for possible participation by Russia in EU-led crisis management operations under agreed conditions.

12. We have emphasised mutual interest in further developing our dialogue and interaction on non-proliferation, disarmament and arms control, and pointed out the significance of realising our commitments and obligations in this field. The European Union and Russia have strengthened their cooperation in support of destruction of chemical weapons and disposition of weapons grade plutonium, implemented in the Russian Federation. The EU Joint Action establishing a Co-operation Programme for non-proliferation and Disarmament in Russia has proposed expanding to new project sites, including the Shchuchye chemical weapons destruction site.

13. We have committed ourselves to removing obstacles to trade and investment between the European Union and Russia as soon as possible. Key building blocks for this are legislative cooperation and the harmonisation of technical standards. The two sides agree to step up their work in this area and will examine appropriate mechanisms within the PCA framework. We welcome that new procedures to enhance the dispute settlement mechanism of the PCA will soon be in place.

14. We agree to establish a joint high-level group within the framework of the PCA to elaborate the concept of a common European economic space.

15. The Russian Federation and the European Union agreed to examine the issue of the use of the Euro in their trade and economic relations.

16. We take note of the re-launch of cooperation on aviation matters. The Russian Government will invite Russian airline companies involved, inter alia, in handling Trans-Siberian over-flights to participate in the dialogue. The review of all these issues will commence during the visit of Commission Vice-President de Palacio to Moscow on 25 May

17. We note with satisfaction that negotiations on a new fisheries agreement will start in June. Negotiations on a pharmaceutical agreement should be accelerated. The EU will continue to examine the Russian draft of veterinary agreement.

18. We agree that simplification of customs procedures at border crossings is important for the further development of trade relations between the European Union and Russia. We note that co-operation in this area is already under way, and agree on the importance of bringing customs fraud and capital flight under control without damaging trade flows or discriminating against bona fide economic operators.

19. The EU reiterates its support for Russia's WTO accession and will continue to assist Russia in its adaptation to WTO requirements. We are ready to intensify our work with a view to accelerating the process of negotiations on accession. We note with satisfaction that a high-level conference on WTO and Russia was organised jointly in Moscow on 30 March 2001, promoting the internal debate on WTO in Russia.

20. We welcome the resumption of the high level economic dialogue in Moscow on 11 May between an EU delegation, led by the Ecofin President, and the Ministers of Finance and Economy of the Russian Federation. We note with satisfaction the mutual interest in taking the economic dialogue forward.

21. We emphasise the importance of contacts between business-people and the activities of the Russia-EU Industrialists' Round Table and the European Business Club in Moscow. Modern trade unions and employer organisations are also essential for the establishment of a social dialogue in a market economy. We note with satisfaction that contacts between EU and Russian trade unions are developing.

22. We express our satisfaction with the progress achieved since the Paris Summit through our energy dialogue. This should lead to a strategic partnership in the energy field and enhance the reliability of energy supply both in the EU and Russia. With this in mind, it is essential to encourage EU investment and technology transfer to Russia's energy sector, and to facilitate this, several priority areas have been identified for further discussions. These include the transparency of the energy markets, an assessment of the reliability of the existing energy transport infrastructures, issues linked to production sharing agreements, conditions for electricity imports from Russia, co-operation in energy technologies and nuclear safety, adequate measures related to combat climate changes (e.g. as foreseen in the Kyoto Protocol), energy saving projects in the residential sector, transfer of modern technologies and procedures for the speedy settlement of disputes. We draw particular attention to energy efficiency as a way to limit the growth in demand and enhance environmental protection. The ratification of the Energy Charter Treaty by Russia would help to create a more favourable environment for the support of International Financial Institutions and for international investments. We take note with satisfaction of the work of the thematic expert groups which is reflected in their preliminary findings. A final report will be submitted shortly, with a view to its consideration at the next summit. Based upon this, the parties will formulate further specific steps towards the strategic energy partnership within the framework of the PCA.

23. We welcome the first Ministerial meeting on Justice and Home Affairs between the EU Troika and the Russian Federation 6 April in Stockholm and intend to develop a reinforced dialogue on these important issues between the European Union and Russia.

24. We attach the greatest importance to the implementation of the Joint Action Plan on combating organised crime, where priority will be given to combating trafficking in human beings, drugs and stolen vehicles. In this context, the expanding co-operation between our law enforcement agencies will be of crucial importance.

25. We emphasise the critical need for intensified efforts to combat corruption and money laundering. We welcome the recent ratification by Russia of the 1990 Money Laundering Convention and look forward to the rapid adoption of anti-money laundering legislation in line with international norms. In this respect, Russia will continue its active cooperation with the Financial Action Task Force on Money Laundering (FATF).

26. We underline the fundamental importance of effective and independent legal institutions as a prerequisite for confidence in the legal system and the rule of law. We agree that further co-operation in the area of judicial training should be pursued.

27. We have reaffirmed the importance of continued work on reaching agreement on consular and visa matters between Russia, the EU and the EU Member States. We agree to take particular measures against illegal immigration and will seek to conclude a readmission agreement.

28. We reaffirm the importance of combating international terrorism and extremism in all their manifestations.

29. We welcome the progress reached on a Multilateral Nuclear Environmental Programme in the Russian Federation (MNEPR) and look forward to its signature before the end of the current EU Presidency. We will instruct our respective negotiators accordingly.

30. We repeat our strong interest in deepening our co-operation in the field of environment. We remain committed to the goals and principles of the UN Framework Convention on Climate Change and the Kyoto Protocol, and reaffirm our willingness to pursue constructive participation in the Kyoto process in order to promote early entry into force oftheKyoto Protocol. We attach great importance to the contribution that can be made through the implementation of flexibility mechanisms specified by the Kyoto Protocol.

31. Russia welcomes that the Union has opened the way towards EIB lending for selected environmental projects. We agree on the great importance of reducing pollution in the Baltic Sea and the need to work together to formulate and fund projects for waste-water projects in North-West Russia. We welcome that a viable financing solution for the construction of the St Petersburg South West Wastewater Treatment Plant is near completion and will be finalised in the coming months. Apart from Russia, the project is expected to involve a number of actors including the Nordic Investment Bank, the European Investment Bank, the Nordic Environment Finance Cooperation (NEFCO), the Tacis Programme and individual Member States. The ”Northern Dimension Environmental Partnership“ also provides an innovative framework to mobilise resources for environmental projects in the region.

32. We note the mutual complementarity of our scientific and technological capacities. Our objective is to use this to improve our international competitiveness and our contribution to global science. In particular, we welcome the entry into force of the Agreement on Scientific and Technological Co-operation.

33. We stress the significance of our common cultural and historical heritage. In this connection, the Union welcomes the upcoming 300th anniversary of St Petersburg, ”Russia's window to Europe“. The Union is willing to contribute to the celebrations, which will represent an opportunity to highlight the close links between Russia and the Member States of the European Union.

34. We have reiterated our commitment and determination to work for the resumption of negotiations with a view to a just, lasting and comprehensive peace in the Middle East. In this context, we are deeply concerned over the protracted crisis and we stress the importance of Israelis and Palestinians taking immediate steps to break the spiral of violence, normalise the situation and develop and intensify their security cooperation. In parallel, the two sides should, in full compliance with existing agreements, resume negotiations for an agreement on the basis of UN Security Council resolutions 242 and 338 and the Madrid Principles. The parties involved must also take all necessary steps to reduce tension in the Lebanese-Israeli border area and between Israel and Syria.

35. Russia and the EU support the development of good-neighbourly relations and regional cooperation and respect the existing borders and the sovereignty and territorial integrity of all States in the Balkans. We hope that the democratic reforms initiated in the Federal Republic of Yugoslavia will be pursued. The EU and Russia note with satisfaction the readiness of the authorities in Belgrade to continue on the path towards full co-operation with International Criminal Tribunal for Yugoslavia (ICTY). We welcome the constructive approach of the authorities in Belgrade on the settlement of the situation in Southern Serbia and support every effort in finding a peaceful solution to the crisis in the region. Russia and the EU call on the authorities in Belgrade and Podgorica to conduct an open and transparent dialogue, aiming at an agreed redefinition of Federal relations according to democratic principles while ensuring the stability of the region. Supporting a democratic Montenegro within a democratic Yugoslavia, we underline the need to refrain from any unilateral steps that might jeopardise a settlement. Russia and the EU voice their strong support for the international communities' efforts to ensure the full implementation of UN Security Council Resolution 1244, which remains the basis of the Kosovo settlement. We strongly condemn the continued ethnically-motivated and other violence in the province and call on Kosovo Albanian leaders to clearly distance themselves from and take action against terrorist acts and extremism of any kind.

36. Russia and the EU support the prospect of holding of Kosovo-wide elections this year, after the completion of a legal framework for self-government, with participation of all communities, refugees and displaced persons and under secure conditions. Russia and the EU strongly condemn attempts by armed Albanian extremists to destabilise the situation in the FYROM/Macedonia. All existing inter-ethnic problems should be resolved peacefully through dialogue.

37. We reaffirm our determination to fully implement the Dayton Peace Agreement on Bosnia and Herzegovina and call upon representatives of the peoples of Bosnia and Herzegovina to solve the problems they face exclusively within the framework of the Peace Agreement and in accordance with its letter and spirit. We most resolutely condemn those who violate the Constitution of Bosnia and Herzegovina and attack representatives of the international community. We support the democratically elected authorities of Bosnia and Herzegovina and of its Entities, as well as the actions of the High Representative and the Stabilisation Force to maintain constitutional order.

38. The European Union and Russia exchanged views on the developments on the Korean Peninsula. The EU informed Russia about the EU visit by Prime Minister Persson, High Representative Solana, and Commissioner Patten to Pyongyang and Seoul on May 2 – 4, 2001. We express our appreciation and support for the positive steps taken by both the Republic of Korea (ROK) and the Democratic People's Republic of Korea (DPRK) in implementing the South-North Joint Declaration since the first inter-Korean Summit in June 2000, and look forward to further progress in the process of reconciliation and cooperation through a strengthened inter-Korean dialogue. We welcome chairman Kim Jong-Il’s confirmation that DPRK will uphold the 1999 missile testing moratorium until 2003.

39. The Summit was characterised by an open and constructive dialogue on all issues. In the course of the meeting, we reaffirmed our long-term strategic partnership, based on common values. Our objective is to establish a wider area of cooperation in Europe and neighbouring regions aimed at enhancing economic growth and prosperity, social development, a clean environment and strengthened security and stability.