nister Vladimir Bulgak and Ottokar Hahn, the head of the European Commission Delegation in Moscow. Bulgak stressed that Moscow was especially concerned both by possibly being excluded from energy sales to European markets and potential restrictions on the flow of Russian labor and citizens as well. Russia could, however, benefit from EU expansion eastward: Aspiring member states are adapting to EU regulations in a manner paralleling Russia’s own economic reforms. Therefore, this wave of expansion does not necessary result in a significant increase in barriers to Russian exports, as was the case with the accession of Austria, Sweden, and Finland. In addition, as Russia progresses with its economic reforms, its exports will be more in line with EU regulations, and these types of barrier will gradually lose their relevance. Russia could also directly benefit from the accession of new members to the EU. Given the differences in the EU economies and those of the countries in Central and Eastern Europe, Russia’s former allies may discover an interest in restoring ties with Russian partners and modernizing plants built in the communist era. Mikhail Fradkin, Russia’s Minister for External Economic Relations, maintains that by 2005 this potential, combined with ongoing reforms in the foreign-trade sector, could increase the volume of Russia’s foreign trade by a quarter . If Estonia, Latvia, and Lithuania meet the criteria for EU membership, Russia would have economically and politically stable neighbors. To fulfill the political criteria (presence of stable institutions guaranteeing democracy, rule of law, human rights, and protection of minorities) the Baltic States should reshape their policy toward Russian citizens by ending all forms of discrimination. The European Commission has already urged Estonia to speed up the naturalization process of Russian-speaking residents who are not ...
