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Moscow, 12th July 2002

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7KH(8ZDQWVWRZRUNZLWK5XVVLDWRPD[LPLVHWKHEHQHILWVRI(8HQODUJHPHQW IRU5XVVLDDQG.DOLQLQJUDG. The issue of transit is important and should not be a problem if the EU and co-operation in a timely fashion to ensure that those who need to travel across the future territory of the EU have the proper travel documentation. The EU is ready to assist Russia in this effort and to contribute to improving the situation at the borders so that people can cross these as speedily and easily as possible. The EU is also keen on co-operating on all the other important issues which concern this part of Russia and the wider , including economic development, energy, environmental and health issues. All citizens of Russia, including those in , and the EU stand to benefit from close co-operation between the EU and Russia on Kaliningrad, the impact of EU enlargement, and the development of the wider region. &RRSHUDWLRQRQ.DOLQLQJUDGIRUPVSDUWRIWKHEURDGHU(85XVVLDSDUWQHUVKLS which has developed over the past years and which will become even more important for both the EU and Russia after EU enlargement when the shared borders become much longer than they already are. It is in the spirit of partnership that the EU wants to work with Russia on Kaliningrad and continue to strengthen the relationship between the EU and Russia which form part of a wider Europe, the development of which is crucial for both. 7KH(XURSHDQ8QLRQUHFRJQLVHVWKHXQLTXHVLWXDWLRQRI5XVVLDV.DOLQLQJUDG UHJLRQ DQG WKH SDUWLFXODU FKDOOHQJHV DULVLQJ IURP WKH IRUWKFRPLQJ HQODUJHPHQW RI WKH (XURSHDQ 8QLRQ. It was for this reason that the published a Communication on “The EU and Kaliningrad” in January 2001. In this Communication the Commission outlined various elements and options for co-operation with Russia and neighbouring countries on regional development for Kaliningrad. The document pointed out while main responsibility for the development of Kaliningrad rests of course with Russia the was ready to assist in the economic and social development of the as part of the strengthening of relations with Russia, an increasingly important partner of the EU. As input for intensified discussions the European Commission recently prepared a second document setting out the Commission´s analysis of the main issues and making concrete proposals for further work with the Russian authorities. This document, “EU-Russia Co-operation on Kaliningrad: 2002 and beyond” was given to the Russian authorities in May and is intended to further contribute to strengthening EU-Russia co-operation on Kaliningrad. The European Council in Seville on 21 June invited the European Commission to submit, in time for the 24-25 October European Council Meeting of Heads of State in Brussels, an additional study on the possibilities for an effective and flexible solution of the transit of persons and goods to and from , in compliance with the acquis and in agreement with the candidate countries concerned. The study is now under preparation. (85XVVLDFRRSHUDWLRQRQWUDQVLWLVVXHV 7KH(8LVDZDUHRIDQGIXOO\XQGHUVWDQGVWKHLPSRUWDQFH5XVVLDDWWDFKHVWR WKHPRYHPHQWRI5XVVLDQFLWL]HQVEHWZHHQ.DOLQLQJUDGDQGWKHUHVWRI5XVVLD DIWHU (8 HQODUJHPHQW. This issue has been carefully considered by EU Member States and the EU has also consulted the candidate countries concerned. Established EU policy is to require all Russian citizens passing through EU Member States to be in possession of a valid travel document and an appropriate visa. This is not something entirely new, Russian citizens travelling to Kaliningrad by car already need visas. Given the EU’s safety and security concerns about its frontiers we do not consider transit corridors across future Member States as being a viable option. The visa system required after EU enlargement should not entail any major difficulties for Russian citizens provided that the EU and Russia work together before enlargement. It will be necessary to have a visa before travelling. If Russia gives priority to providing Kaliningrad citizens with internationally valid passports and responds positively to the requests of current and future EU Member States to establish and expand consular facilities in Kaliningrad to facilitate the issuance of visas it will be possible to ensure that all intending travellers can acquire the necessary documentation without difficulty. The European Union has offered to assist with this process, and to help speed up the issuance of passports to citizens of Kaliningrad. More specifically: • The EU has indicated its willingness to KHOS ILQDQFH WKH SURYLVLRQ RI LQWHUQDWLRQDO SDVVSRUWV to all Kaliningrad citizens. The pace of issuing passports could be accelerated and everyone could be provided with a passport before EU enlargement. • is expanding its FRQVXODU IDFLOLWLHV in Kaliningrad, which will help provide the necessary visas. and are also willing to increase their consular facilities in Kaliningrad so that visas can be issued quickly. The European Commission is ready to support the candidate countries in this respect, if Russia is willing to agree to the request for additional/extended consular facilities. • 9LVDV QHHG QRW EH H[SHQVLYH. However, at present Russia charges much higher prices for visas issued to  and and both countries are expected to address the issue on the basis of reciprocity. • 0XOWLSOHHQWU\H[LWYLVDV can be issued to those who need them, for example for professional reasons (bus and lorry drivers etc). The Commission has urged Russia to begin compiling lists of such people now so that they could apply for Lithuanian and Polish visas before 1 July 2003. • The QHZYLVDVZLOO EH PDFKLQH UHDGDEOH which should speed up checks on the border itself and reduce the current long checking times. • The impact of the visa requirement can be further reduced if all citizens of Kaliningrad are fully informed, ahead of 1 July 2003, of what the new rules will be and how they can comply with them. The EU is willing to fund and run an LQIRUPDWLRQFDPSDLJQ, if Russia would find this helpful. )RU PRUH LQIRUPDWLRQ RQ WUDQVLW LVVXHV SOHDVH VHH 4XHVWLRQV DQG $QVZHUV LQ $QQH[

 Poland charges $5 for a single and $14 for a multiple visa valid one year; the Russian Federation charge $35 and $80 respectively

2 (8FRQWULEXWLRQWRWKHGHYHORSPHQWRI.DOLQLQJUDG The need for close EU-Russia co-operation on Kaliningrad, notably in the light of EU enlargement, of course goes much beyond the issue of transit and concerns notably the economic and social development of the oblast. Nevertheless, particular attention needs to be given to the development of border and customs co-operation where the EU and Russia are already working together closely but where more needs to be done. 7KH(XURSHDQ&RPPLVVLRQKDVDOUHDG\FRPPLWWHG¼PLOOLRQLQUHFHQW\HDUV IRUWHFKQLFDODVVLVWDQFHSURMHFWVLQ.DOLQLQJUDG, of which ¼PKDVDOUHDG\EHHQ spent, with ¼PLQWKHSLSHOLQH3URMHFWVLQWKHSLSHOLQHZLOOKDYHDEHQHILFLDOHIIHFW on border crossings, economic development, and environment (see “EU Support to Kaliningrad” in annex 2 for further details). Depending on the plans of Russia for the future development of the region, the EU is prepared to go further and provide an additional ¼PLOOLRQXQGHUWKH7DFLVSURJUDPPHZKLFKFRXOGEHXVHGWRSURPRWH economic development through investment in enterprise development and in small scale infrastructure. The EU could also consider the creation of a new Kaliningrad Fund, using the contribution from the European Commission and inviting EU Member States and other interested parties to contribute.

%DFNJURXQG(85XVVLDUHODWLRQV 5HODWLRQV EHWZHHQ WKH (XURSHDQ 8QLRQ DQG WKH 5XVVLDQ )HGHUDWLRQ KDYH VWUHQJWKHQHGRYHUWKHSDVW\HDUV and a closer partnership is developing which will benefit the citizens of both the European Union and Russia. The EU-Russia Summit on 29 May in confirmed this development as well as the interest on both sides in strengthening ties further in all areas, from trade and economics to energy, political dialogue and developing co-operation in European Security and Defence. The development of the EU´s Common Foreign and Security Policy (CFSP) and European Security and Defence Policy (ESDP) has brought with it closer co- operation and dialogue between the EU and Russia in this important area. 7KH (8 LV 5XVVLDV ODUJHVW WUDGH SDUWQHU. Already, 35% of Russia´s current exports go to the EU; this will increase to over 50% after EU enlargement. EU enlargement will bring significant benefits to Russia, providing an integrated market of 500 million consumers neighbouring Russia. The EU´s announcement at the 29 May Summit to recognise Russia as a market economy will help strengthen trade relations further as well as contributing to Russia´s WTO accession, which the EU strongly supports. Indeed the EU has been at the forefront of those countries with whom Russia is negotiating its terms of accession. The EU and Russia also co-operate on the concept of a &RPPRQ (XURSHDQ (FRQRPLF 6SDFH, which should in time contribute to greater legislative approximation and regulatory convergence, thereby making it easier to do business together. Russia´s decision to engage in a wide-ranging reform process is fully supported by the EU and co-operation is well-developed. The (8 KDV VLQFH  WKURXJK LWV WHFKQLFDODVVLVWDQFHSURJUDPPH7$&,6SURYLGHG¼EQWRVXSSRUW5XVVLDV WUDQVLWLRQand is ready to continue this support to all key areas of Russia´s reform process. In the field of HQHUJ\ our aim is to establish en energy partnership between the EU and Russia and our Energy Dialogue is making good progress as the 29 May Summit noted.

3 As the EU-Russia relationship develops new areas of co-operation emerge and the fight against terrorism, organised crime and trafficking in human beings are issues of common concern on which the EU and Russia have begun a promising dialogue. Co-operation is thus intensifying in all areas, which is natural given the close proximity of the EU and Russia. As the EU enlarges, the EU and Russia become even closer neighbours and our relationship will become even more important. http://europa.eu.int/comm/external_relations/russia/intro/index.htm

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(86XSSRUWWR.DOLQLQJUDG Since 1991, the European Union has made a large financial commitment to Kaliningrad. Kaliningrad has been allocated roughly ¼ PLOOLRQ GLUHFWO\ LQ 7DFLV assistance, of which around ¼PLOOLRQKDVDOUHDG\EHHQVSHQWDQG¼PLOOLRQLVLQ the pipeline. The region has also benefited from other TACIS programmes for Russia at a national level and the many regional programmes which the EU finances. The Commission has opened a Tacis support office in Kaliningrad city. EU support has focused on a few key sectors.

3ULYDWH6HFWRU6XSSRUW While Kaliningrad ranks third in Russia in terms of the number of SMEs per capita and has attracted a strong contingent of Moscow banks, the region has only attracted inward investment at levels comparable to the Russian average. The business environment needs to develop greater predictability, stability and incentives. There is also a need to improve investor and property protection. As elsewhere in Russia there is a need for a stable and secure legal and institutional environment, good corporate governance, fair and efficient enforcement of legislation (e.g. to guarantee the protection of shareholder and investor rights, bankruptcy, auditing and accounting), enterprise restructuring and the further development of SMEs. Market institutions need to be strengthened, e.g. in the financial sector and the tax system. For these reasons the EU has focused much of its assistance on private sector development in Kaliningrad. The following priority areas have received support: • Regional economic development, with support in excess of ¼PLOOLRQJLYHQWR the development of the Free Economic Zone/ Special Economic Zone (FEZ/SEZ); strengthening of the Regional Development Agency and preparation of a regional economic development strategy; trade and investment promotion and transport • enterprise restructuring, with support of roughly ¼PLOOLRQIRUWKHWKHFUHDWLRQRI an Enterprise Support Centre and the strengthening of the local SME Development Agency. Special attention was given to the fish industry. • human resource development in the private sector, with the establishment of a Business Management department at the Economics Faculty of the Kaliningrad State University (¼PLOOLRQ • promotion of innovative SMEs, with assistance for one local SME centre to network with other centres located in the Baltic region, to train local staff on innovation management and to develop financial schemes to support commercialisation of innovation. This is a component of a ¼PLOOLRQSURMHFWIRU North West Russia. • energy, with assistance in excess of ¼PLOOLRQJRLQJWRUHJLRQDODQGORFDOKHDW and power utilities to help them adjust to modern market conditions by improving efficiency in energy distribution, restructuring and adapting tariffs; and, for a number of energy saving initiatives. • agriculture, with training of agriculture students on practical aspects of food production, processing and distribution, including support to an experimental farm in Slavenskoie (¼PLOOLRQ 

5 In addition, Kaliningrad has benefited from a range of facilities open generally to Russians. Officials and companies based in Kaliningrad can participate in Tacis funded training programmes to help develop market institutions such as banks, insurance and local tax services. Local managers participate in training programmes in EU companies. With a view to developing Kaliningrad’s export potential and markets in neighbouring countries, the EU is also providing assistance in areas such as harmonisation of standards and conformity assessment procedures.

  &URVV %RUGHU &RRSHUDWLRQ  %RUGHU 0DQDJHPHQW DQG 3RUW 'HYHORSPHQW Considering the geographic location of Kaliningrad cross border co-operation and trade/transit facilitation is of particular importance. A number of programmes are being implemented which aim at facilitating trade and movement of goods and persons through the development of infrastructure, modernisation of border procedures, and training of enforcement agencies staff to detect unlawful activities and increase their capacity to collect tax revenue. At present, there are 23 crossing points between Kaliningrad, Poland and Lithuania. In order to ensure the efficient flow of goods across the EU’s external border in the future, investment is needed in physical infrastructure and in processing, including through upgraded information systems. Under the Tacis Cross Border Co-operation Programmes, two border crossings in Kaliningrad received priority: Chernyshevskoe /Kybartai- (road/rail) and / (road), on the borders, respectively, with Lithuania and Poland. These crossings, identified after a detailed feasibility study, are the major ones located on the Pan European Transport Network. Works on the Bagrationovsk/Bezledy project (¼ PLOOLRQ  KDV DOUHDG\ started. The Chernyshevskoe /Kybartai-Nesterov project (¼PLOOLRQ  ZLOO VWDUW RQFH expropriation issues are resolved. In addition, the EU is providing support to modernisation and extension of border crossings on the Polish and Lithuanian sides. Under the Tacis Customs Programme, the EU is helping customs officers at Kaliningrad Port improve customs control procedures for both freight and passengers. Furthermore, it is providing equipment for Kaliningrad’s customs laboratory (¼PLOOLRQ  Port development is another area of focus in the area of cross border cooperation and trade facilitation. The EU Kaliningrad Port Development project (¼PLOOLRQ aimed to stimulate trade and transit via the region, by strengthening the competitiveness of its port facilities and their management. Ultimately, the port modernisation will contribute to a sustainable economic development of the area and its integration into the Baltic region. As elsewhere in Russia there is a need for action to combat illegal activities and organised crime. The Task Force on Organised Crime in the Region can make a valuable contribution to tackling these problems. On the local level co- operation is needed to deal with problems such as car crime and then be extended to other areas. Co-operation could also be directed at improving the independence of the local judiciary, in particular via training and twinning programmes targeting magistrates. Tacis has provided ¼PLOOLRQLQIXQGLQJWRDVVLVWLQILJKWLQJRUJDQLVHG crime.

6 (QYLURQPHQW As part of wider efforts to improve the quality of life in Kaliningrad there is a need to focus on the environment, and in particular on reducing water pollution. A cleaner Baltic Sea would benefit all Baltic Sea regions and is a priority objective for regional co-operation. More than 400,000 tonnes of domestic and industrial wastes are being generated every year in Kaliningrad and only a fraction is recycled. As a result, roughly 15 million tonnes of solid waste have accumulated on municipal landfilles with no further treatment. These dumping sites represent a major source of air, ground and particularly water pollution. The environment has been a focal point for EU assistance. Current activities include a water environmental monitoring and management project (¼PLOOLRQ GHDOLQJZLWK water quality on the borders with Lithuania and Poland and a waste management project in Kaliningrad’s coastal zone (¼ PLOOLRQ  ZKLFK LV GHVLJQHG WR DOOHYLDWH WKH impact of waste generation on both public health and the environment. There is an EBRD/NEFCO/NIB loan for a sewerage treatment plant in Kaliningrad City. The EU’s LIFE programme has initiated two projects in Kaliningrad, in the areas of urban traffic and ecotourism. The EU also financed the establishment of an Environmental Centre for Administration and Technology (ECAT) in Kaliningrad, which was transferred to the local authorities in 1997.

+HDOWKDQG(GXFDWLRQ The spread of communicable diseases is a serious problem in Russia and particularly in Kaliningrad. While these problems must be tackled at the federal level there is a need for preventive action in Kaliningrad itself. Tacis is supporting several initiatives at local level and in the non-governmental sector to help reform health care delivery systems and to help deal with HIV. Kaliningrad is also taking part, as a pilot region, in the North West Health Replication Project aiming at reducing health and social disparities across the borders by supporting the reform of the health system in the region. The EU has also supported NGOs in the social and health sector, especially projects aimed at the social re- integration of former military staff and their families. The TEMPUS programme for higher education has encouraged co-operation, exchange and networking between Kaliningrad and EU universities.

1HZ2ULHQWDWLRQV In view of enlargement, the EU assistance will pay particular attention in the coming years to the regions bordering the EU and the candidate countries. Kaliningrad receives specific mention in the 2002-3 Tacis Indicative Programme for Russia and in the Cross Border Co-operation Programme. A specific focus under the Russian National Programme will be on improving the capacity of municipal authorities to deliver essential public services such as water, heating, housing and also waste and wastewater treatment. In addition to the transfer of know how to municipalities (including utility management, tariff policy, etc.), small scale investment in utilities will be supported with priority given to water management and energy saving. Advice and training for municipal authorities and utility managers will also be provided with a view to enabling them to prepare for and make full use of the investment provided by IFIs. These are a few examples, which reflect the priority that the EU is granting to Kaliningrad with a view to ensuring that the enclave can take advantage of the new opportunities created by enlargement of the EU.

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7HUULWRULDOTXHVWLRQV  'RHV WKH (8 DJUHH WKDW WKH LQWURGXFWLRQ RI D IXOO YLVD UHJLPH IRU 5XVVLDQ FLWL]HQV WUDYHOOLQJ EHWZHHQ .DOLQLQJUDG DQG WKH UHVW RI 5XVVLD YLRODWHV WKH VRYHUHLJQW\DQGLQWHJULW\RI5XVVLDQWHUULWRU\" No. Visas are common to control movement of people on the sovereign territory of who need to know who is on their territory. A new situation will be created by EU enlargement. But visas will not, nor are they aimed at, preventing Russian citizens from moving between different parts of Russian territory. The issue here is that Russians wishing to transit through Poland and Lithuania will, in future, be entering EU territory, where internal borders and controls will eventually be removed. Poland and Lithuania will thus become responsible for maintaining EU external borders and they have to join the existing system for managing our borders, which includes to require visas for all citizens coming from a list of countries which includes Russia. However, the EU is from its side working towards a system, which would make border crossing smooth, secure and efficient. This would allow Russian citizens speedy and easy access through EU territory.  :KDW FDWHJRULHV RI .DOLQLQJUDG UHJLRQ UHVLGHQWV ZLOO EH GHQLHG YLVDV" %\ ZKDWGRFXPHQWVRIWKH(8ZLOOLWEHUHJXODWHG" Under Schengen rules there are no established categories for which Visas should be denied, but one can assume that certain categories, such as registered criminals, would not get visas During the transition period, before Poland and Lithuania become full members of Schengen, national registers of people to whom Visas should be denied emanating from these two countries will be applied. Once they have joined the Schengen area, Schengen registers common to all 15 Schengen countries, completed with the data sent by the new member states, will be used.  :LOO WKH FRQVXODU VHUYLFHV SUHVHQW UHDVRQV IRU D YLVD GHQLDO WR 5XVVLDQ FLWL]HQV" Again, during the transition period this will depend on national legislation of Poland and Lithuania. Once they become full members of Schengen, they will have to apply Schengen rules to the full extent. Schengen rules do not provide for a general obligation to give the reasons for refusal of visas. :LOODUHVLGHQWRIWKH.DOLQLQJUDGUHJLRQZKRZDVGHQLHGDYLVDEHDEOHWR DSSHDODJDLQVWWKLVGHFLVLRQ",IVRZKHUH"2QWKHEDVLVRIZKDWGRFXPHQWV" ,VWKHDSSHDOPHFKDQLVPDOUHDG\NQRZQ" The issue of a right to appeal against this decision is governed by national legislation and not by EU/Schengen legislation, so it is the national law to define the procedure and possible channels of appeal in cases where the diplomatic mission or consular post of a Schengen State refuses to examine an application or issue a visa.

8  5XVVLD LV FRQFHUQHG WKDW DIWHU HQODUJHPHQW .DOLQLQJUDG ZLOO EH ³VXUURXQGHG´ DQG WKHUHIRUH LVRODWHG E\ WKH (8 $UH WKHUH DQ\ IRUFHV LQ WKH (8ZKLFKPLJKWZDQWWRVHSDUDWH.DOLQLQJUDGIURP5XVVLD" The EU fully recognises that Kaliningrad is an integral part of the Russian Federation. This is not, therefore, an issue for discussion. ,VWKHDFFHVVLRQRIFHUWDLQ5XVVLDQUHJLRQVWRWKH(8SRVVLEOHLQSULQFLSOH" The European Union does not negotiate agreements with parts of states and, therefore, this is not possible.

0RYHPHQWRISHUVRQV  'RHV WKH (8 SRVLWLRQ RQ .DOLQLQJUDG FRQWUDGLFW LWV RZQ SULQFLSOHV RI IUHH PRYHPHQW RI SHRSOH FDSLWDO DQG LQIRUPDWLRQ" ,V WKLV D TXHVWLRQ RI GRXEOH VWDQGDUGV" The issue of free movement of persons within EU borders is not related to the EU´s external relations, including relations with Russia and Kaliningrad. There is no double standard here since these are two separate things. The EU is indeed very keen on co-operation with countries such as Russia to bring down barriers and strengthen trade and economic ties and people-to-people exchanges. This is the reason why EU-Russia relations have intensified over the past years in all areas. The fact that citizens of EU Member States and Russians need visas to travel to or through each others territories is a reality for citizens on both sides. The EU is keen on working with Russia to make the system secure but at the same time as smooth and efficient as possible, especially for Kaliningrad. This includes improving, for example, border crossing and customs facilities which the EU has offered to assist Russia with. It is important to note that non-EU nationals, including Russian citizens, will benefit from an enlarged EU area of freedom, security and justice, which includes the possibility to circulate within an area without internal border controls. A Schengen visa will allow Russian citizens to travel to all Schengen countries, including the new Member States, after the internal border controls have been removed. ,IZHXQGHUVWRRGLWFRUUHFWO\LQRUGHUWRJHWE\FDURUWUDLQIURP.DOLQLQJUDG VD\ WR 0RVFRZ  D UHVLGHQW RI WKH .DOLQLQJUDG UHJLRQ ± WKDW LV D FLWL]HQ RI 5XVVLD ZLOO QHHG WR JHW D SHUPLVVLRQ IURP DQ RIILFLDO RI RWKHU VWDWHV $UHQ¶W KHUHDQ\YLRODWLRQVRISDUDJUDSKDUWLFOHRI3URWRFRO1RIWKH&RQYHQWLRQ RQ WKH SURWHFWLRQ RI KXPDQ ULJKWV DQG IXQGDPHQWDO IUHHGRPV ZKLFK ZDV VLJQHGE\DOOPHPEHUDQGFDQGLGDWHFRXQWULHVRIWKH(8" This is not a human rights issue as such. When travel takes place across a future EU territory – through Lithuania for instance – this country has a right to know who is travelling on its territory. Furthermore, there are other ways of travelling to and from Kaliningrad than crossing EU territory, such as, for example, by ferry and plane. The EU is offering to improve the present situation at the borders by expanding border infrastructure to help ensure that the borders can be crossed more quickly and efficiently than is presently the case. Visas are no obstacles to this if border and consular facilities are improved. There is a great deal to be done here jointly. Russia should co-operate with the EU so we can begin to take joint action to improve the existing situation.

9  :K\ DUH WKH 6FKHQJHQ QRUPV PRUH LPSRUWDQW WKDQ WKH ULJKW RI 5XVVLDQ FLWL]HQVWRIUHHPRYHPHQWEHWZHHQGLIIHUHQWSDUWVRIWKHLUFRXQWU\" This is not a question of EU rules being more or less important than the right of Russians to travel between different parts of Russia. After EU enlargement Russian citizens will have to pass through EU territory when they travel from Kaliningrad to other parts of Russia or vice versa if they choose not to fly or to take the ferry. When crossing EU territory EU rules must apply. The EU wants to make the application of these rules as simple and flexible as possible and wants to co-operate with Russia to make crossing the border as easy as possible.  :K\ DUH WKH 5XVVLDQ SURSRVDOV IRU VSHFLDO µWUDQVLW FRUULGRUV¶ QRW DFFHSWDEOHWRWKH(8" Both the EU and the candidate countries firmly reject the Russian proposals for special 'transit corridors'. It is a question of security and protection of EU borders. “Corridors” are a tool of the past; memory of them is not a positive one. Our approach is to work with Russia to ensure secure but open and transparent borders and the movement of border traffic. This requires proper travel documentation and visas and sufficient border infrastructure and consular facilities. The EU is offering assistance to Russia to ensure that these things can be brought into place in order to make sure that the situation at the borders is made better than it is today. Corridors are not, moreover, consistent with the idea of establishing a common economic space between the EU and Russia. The concept of a common economic space aims at trade facilitation and implies a dynamic process to liberate the exchange of goods. It does not combine well with the idea of compartmentalising movement of goods and means of transport through corridors. :K\LVWKH(8VRDIUDLGRIIUHHPRYHPHQWRI5XVVLDQQDWLRQDOVWRDQGIURP .DOLQLQJUDGJLYHQWKDWWKHOHYHORIFULPLQDOLW\LQ.DOLQLQJUDGLVQRKLJKHUWKDQ LQQHLJKERXULQJ/LWKXDQLD" The issue of organised crime in the region is one on which the EU and Russia recognise the need for co-operation and are already heavily engaged, notably in the framework of the Baltic Sea Task Force on Organised Crime.  ,V WKH (8 SUHSDUHG WR GLVFXVV YLVDIUHH HQWU\ WR WKH (8 IRU DOO 5XVVLDQ FLWL]HQV" As a general aim the EU and Russia should work together to improve the conditions for the movement of our citizens across frontiers, creating the conditions under which decisions could be taken to ease visa requirements on a reciprocal basis. The conditions for such decisions are laid down in our legislation and they include criteria related, for example, to illegal migration, public policy and security. In the meantime we need to reinforce our co-operation on a number of issues, which would provide stepping stones for us to move towards a relationship in which visa rules on both sides can be eased. These issues include a readmission agreement, which would help speed up the reciprocal return of illegal migrants originating from either the EU or Russia, the need to secure a proper level of reliability of Russian foreign travel passports, and strengthened co-operation to combat illegal migration and organised crime.

10 :KDWNLQGRIYLVDVZLOO3RODQGDQG/LWKXDQLDLVVXH" Poland and Lithuania will not become full “Schengen” members immediately upon accession, so there is a transition period during which both countries will have to apply the EU common visa rules but not yet the full Schengen rules. During this transition period Poland and Lithuania will issue national visas (i.e. only valid for travel in their territory and not for travel in other EU Member States). Full Schengen rules, which will provide for access to all Schengen countries on the basis of a common “Schengen” visa, will therefore only be applied afterwards. This “two-step” implementation of Schengen is not something new, but it has been the practice during the previous enlargements of the Schengen area as well.

3ROLWLFDORUWHFKQLFDOLVVXH" ,VWKH.DOLQLQJUDGSUREOHPDSROLWLFDORUDWHFKQLFDOLVVXH" This issue is politically sensitive for the EU, which increasingly has to define its interests in the context of an enlarged EU, for the candidate countries concerned and for Russia. At the same time there is a clear technical aspect – namely the rules guiding the movement of people across frontiers. By working on the technical side we can do a lot of good. With the proper travel documents and visa, travel to and from Kaliningrad by Russian citizens through EU territory should be able to take place speedily and faster than is currently the case provided Russia agrees to the EU offer to help expand and improve border and consular facilities and if internationally valid passports and provided to the citizens of Kaliningrad and other Russian citizens who need to travel through EU territory. The current situation at the borders is not good and there is a long waiting time, at some border crossings up to ten hours, or even more at times. The EU wants to co-operate with Russia to improve the situation compared with the situation today. 6LQFHLWLVWKH(8ZKRZDQWVWRFKDQJHWKHVWDWXVTXRDQGHQODUJHLVQRWLW WKH 8QLRQ¶V GXW\ WR HQVXUH WKDW LWV DFWLRQV GR QRW GDPDJH RWKHU FRXQWULHV¶ LQWHUHVWV" The EU is very much aware of the need to ensure that enlargement becomes a positive experience for everyone, including neighbouring countries. This is why the EU has, among other things, offered to co-operate with and assist Russia to improve border crossing facilities, and explained that multiple-entry visas to those Russian citizens who need them are possible, and to promote expanding consular facilities to make sure that visas are issued quickly. Unfortunately, Russia has so far not been ready to engage in in-depth discussions on these important issues. We are convinced that overall enlargement will be very beneficial for Russia as well, with access to an EU market of over 500 million people. It is important to note that non-EU nationals, including Russian citizens, will benefit from an enlarged EU area of freedom, security and justice, which includes the possibility to circulate within an area without internal border controls. 7KH(8FRQVWDQWO\VWUHVVHVWKDW.DOLQLQJUDGSUHVHQWVD³XQLTXHVLWXDWLRQ´ :K\ DUH (8 RIILFLDOV QRW UHDG\ WR XQGHUWDNH ³XQLTXH´ RU ³QRQVWDQGDUG´ DSSURDFKHVWRVROYHWKHSUREOHP" What the EU is offering Russia in terms of assistance and co-operation on Kaliningrad is a reflection of the fact that Kaliningrad is in fact a very special case. The European Commission alone has committed ¼ PLOOLRQ RYHU UHFHQW \HDUV IRU technical assistance projects in Kaliningrad and is ready to provide further assistance, notably to help expand border facilities, provide cheap visas and in general to help ease travel across EU borders.

11 3RVLWLRQRIDFFHVVLRQFRXQWULHV :K\VSHHGXS/LWKXDQLD¶VDFFHVVLRQWRWKH(8ZKHQWKH.DOLQLQJUDGLVVXH UHPDLQV XQUHVROYHG" $UH WKH FRQFHUQV DQG DVSLUDWLRQV RI /LWKXDQLD PRUH LPSRUWDQWWKDQWKRVHRI5XVVLD" Lithuania´s accession process is ongoing and is independent of the situation concerning Kaliningrad. Lithuania is an independent and sovereign country, which has decided to join the EU and is likely to do so over the coming years. /LWKXDQLDQ30%UD]DXVNDVVDLGUHFHQWO\WKDW/LWKXDQLDZRXOGEHUHDG\WR SUHVHUYH D YLVDIUHH UHJLPH IRU 5XVVLDQ QDWLRQDOV WUDQVLWLQJ WKURXJK LWV WHUULWRU\ WRDQGIURP.DOLQLQJUDG LI5XVVLDDQGWKH(8ZHUHWRDJUHHRQWKH PDWWHU:RXOGWKH(8FRQVLGHUWKH/LWKXDQLDQSRVLWLRQ" Negotiations on the chapter on Justice and Home Affairs (including visa policy) with Lithuania have been concluded. Both sides have agreed on a timetable for the introduction of the EU rules (“acquis”). Lithuania has committed itself to apply EU rules upon accession and EU rules stipulate that Russian citizens need valid travel documents and a visa when entering EU territory. It should also be pointed out that Russian citizens travelling to Kaliningrad by car already need visas and have needed these since 1995. :K\LVWKH(8RSSRVHGWRTXDGULODWHUDOWDONVZKLOH3RODQG/LWKXDQLDDQG 5XVVLDDJUHHWRWKHP" The issue of accepting EU rules on visas is part of the accession process and negotiations, which are conducted between the EU and accession countries on a bilateral basis. Both Poland and Lithuania have accepted these rules. :KHQ6ZHGHQMRLQHGWKH(8LWSRVWSRQHGLWVDFFHVVLRQWRWKH6FKHQJHQ DJUHHPHQWIRUXSWRILYH\HDUVXQWLODVROXWLRQFRXOGEHIRXQGWRWKHFRQFHUQV RI1RUZD\DQG,FHODQG:K\LVDVLPLODUGHFLVLRQQRWSRVVLEOHQRZ" Sweden, as well as the other Nordic countries, had visa requirements for Russian citizens long before Sweden, Denmark and became members of Schengen, so these cases are similar only in that neither Poland nor Lithuania will join Schengen fully upon accession. But they will begin to apply basic EU visa and border control rules along with other rules in the field of justice and home affairs as a first step towards full Schengen membership, as was the case with Sweden. The application of the rules is part of a process by which the candidate countries build and demonstrate their capacity to protect and guard EU external borders before the internal borders are lifted upon accession to Schengen.

12 7UDQVLWRIJRRGV :KDWDUHWKHFRQGLWLRQVIRUWKHWUDQVLWRIHQHUJ\UHVRXUFHVHOHFWULFSRZHU DQGJRRGVWR.DOLQLQJUDGREODVWWKURXJK(8WHUULWRU\" Transit of goods will take place in line with existing international rules, as provided for by the EU-Russia Partnership and Co-operation Agreement. There will be transit without customs duties or any other transit duties (other than charges for transport and administration). Co-operation between authorities and agencies on the Russian side and across the borders and co-ordination with regard to infrastructure decisions need to be improved. The European Union is already providing much technical assistance at border crossings with Russia, as part of cross-border co-operation programmes. Transit of conventional energy resources would continue as at present after enlargement without particular difficulties. However, transport of liquefied petroleum gas by rail and road must comply with EU safety standards for the transportation of such potentially hazardous products.

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