European Union Eastward Enlargement: Implications for EU-Russian Economic Relations The European Union (EU) is one of the Russian’s key partners both in an economic and a geopolitical sense. EU-Russian relations are built on a partnership basis. Both sides acknowledge the importance of relations between the EU and the Russian Federation and express their mutual desire to strengthen and develop these relations further. On September 5, 1998 the EU presidency issued an open-ended statement on Russia during the Salzburg informal meeting of foreign affairs ministers. The EU presidency statement expressed the importance of a politically stable and economically sound Russia as a “vital” partner for the EU at a global and regional level. Most policy-makers in Russia see close relations with the EU as a most desirable aim. Sergei Karaganov, chairman of the council for foreign and defense policy, says Europe is replacing the US as “the most important partner for Russia. ” Russian external economic and political interests are Europe-oriented. The country’s most densely populated and industrially advanced regions are adjacent to Europe. Russia and Europe also have centuries-old ties and complementary economic systems. Today the EU also represents potential capital, technologies, etc. The European Union is equally interested in Russia, both from the point of view of maintaining security in Europe, and in terms of strengthening its own economic, scientific and technological standing in the world vis--vis the USA and Japan. The vast Russian market could boost EU economic development, thus reducing unemployment in the next century. The EU market is attractive to Russian business because of its relative openness: an average customs duty on Russian import to the EU amounts to 1% and about 80% of goods are imported duty-free. Moreover, 10 percent o...
