EUROPEAN PARLIAMENT EU-RUSSIA PCC WORKING GROUP 17-19 March 2008 Moscow REPORT Ria OOMEN-RUIJTEN, Chairperson DIRECTORATE-GENERAL FOR EXTERNAL POLICIES OF THE UNION 1 Preparatory meeting The preparatory meeting took place on Wednesday, 12 March in Strasbourg. Ms OOMEN-RUIJTEN introduced the agenda and the programme of the planned visit. Mr Michael WEBB, representing the European Commission, provided the Members with a briefing on the state of the EU-Russia relations, in particular on the progress towards a new framework agreement, the post-electoral situation, and issues of common concern and understanding. Interventions by Members followed on specific proposals for meetings and topics of discussion during the visit of the working group to Moscow. Development of the mission The final composition of the working group was the following: Ms Ria OOMEN- RUIJTEN, Chair, Mr Reino PAASILINNA, 1st Vice-Chair, Mr Esko SEPPÄNEN, 2nd Vice-Chair, Mr Emmanouil ANGELAKAS, Mr Bastiaan BELDER, Ms Rebecca HARMS, Mr Metin KAZAK, Mr Henrik LAX, Ms Eluned MORGAN, Mr Justas PALECKIS, Mr Rihards PIKS, Ms Gabriele STAUNER, Mr Csaba TABAJDI, Ms Inese VAIDERE, Mr Janusz ONYSZKIEWICZ (rapporteur). The Working Group held meetings with Members of the Russian State Duma and Federation Council, notably with Mr Andrey KLIMOV, recently appointed Deputy Head of the Committee on Foreign Affairs and new PCC Co-Chair, as well as Mr Gennady GORBUNOV, the first Vice-Chair of Foreign Affairs Committee of the Federal Council and Co-Chair of the EU-Russia PCC. The delegation also met Mr Sergey NARYSHKIN, Deputy Prime Minister, and with Mr Anatoly YANOVSKY, Deputy Minister of Energy. The meetings with the Russian counterparts centred on a wide range of bilateral and international questions, but mainly on energy cooperation and the obstacles to the start of negotiations of the new EU-Russia agreement. The parliamentarians addressed also issues such as the Strategic Sectors Bill, visa facilitation and the EU's internal energy market legislation. The delegation was also briefed by Ambassador Marc FRANCO, Head of EC Delegation, and Slovenian Ambassador Andrej BENEDEJCIC, representing the Slovenian Presidency-in-Office. UK Ambassador Anthony BRENTON briefed the Members on the developments in dispute between the Russian Federation and the UK over the British Council. A Briefing meeting with the EBA European Business Association centered on energy policy related questions, but highlighted also problems European companies have with the Russian administration notably with regard to visa facilitation and immigration laws concerning their non-Russian staff. In a specially organized meeting, Members of the delegation also discussed the situation of democracy, rule of law and human rights in Russia with the representatives of Russian NGOs (Carnegie Moscow Centre, Golos, Centre for the Development of Democracy and Human Rights, Human Rights Watch). 2 Upon return from Russia, Chairwoman Ms OOMEN-RUIJTEN issued a press statement (in Annex) declaring that the first EU-Russia Parliamentary meeting after the elections announced the beginning of a new era, as the discussion showed clear determination on both sides to step up efforts towards the conclusion of a new EU- Russia Agreement. Tuesday, 18 March 2008 Briefing with Mr Marc FRANCO, Head of EC Delegation, H.E. Andrej BENEDEJCIC, representing the Slovenian Presidency-in-Office and UK Ambassador H.E. Anthony BRENTON Ambassador FRANCO and his colleagues gave an overview of the political and economic situation in the Russian Federation, arguing that its economy has been consistently doing very well, with oil and gas being its main engine, while politically the country has been seeing a continuing restriction of democracy, with concentration of central power and further convergence of political and economic elites. As for relations with the EU, mutual trade and investments have been growing, but the relations are overshadowed by the problem of the start of the negotiations on a new EU-Russia framework agreement, a mandate for which is expected during the Slovenian Presidency. Slovenian Ambassador Mr BENEDEJCIC presented the Presidency's objectives towards Russia, which included starting negotiations on new partnership agreement, promotion of intercultural dialogue, including its Slavic dimension, and the third dimension of the new neighbourhood policy. UK Ambassador Mr BRENTON briefed the delegation on the continuation of the dispute over the activities of the British Council, the cultural arm of the British government, in the Russian Federation. In the ensuing debate, Mr LAX raised the issue of the implementation of the EU- Russia visa facilitation agreement, including the associated problem of working permits for businessmen and experts, which endangers also many EU-funded projects. Meeting with Mr Sergey NARYSHKIN, Deputy Prime Minister The meeting was opened by Mr Sergey NARYSHKIN, who warmly welcomed the delegation of the European Parliament and stressed that the EU remains a strategic partner for the Russian Federation, particularly in economic cooperation. The Deputy Prime Minister, expressed hope that the mandate for the negotiations of a new cooperation agreement will be adopted soon. Mr NARYSHKIN was accompanied by Mr Andrey KLIMOV, the EU-Russia PCC Co-Chair and Mr Sergey RYBAKOV, representative of the Ministry of Foreign Affairs. On behalf of the EP delegation, Ms OOMEN-RUIJTEN underlined the importance of understanding as the basis of the new agreement and raised a number of issues of common concern including the nature and depth of the new agreement, the state of the 3 WTO negotiations, visa facilitation and the issuance of work permits, as well as the Strategic Sectors Bill, which is currently being discussed by the State Duma. Mr FRANCO said on behalf of the Commission that the position of the European Union is that the new agreement should be legally binding and comprehensive. He added that it should be a combination of an overall agreement and sectoral issues, whereas the detail and length should be defined by the negotiators, who should in turn aim to achieve a middle way between extremes. Both sides agreed that the negotiations on the new Partnership and Cooperation Agreement should start as soon as possible and that the new agreement should be legally-binding, comprehensive but not too detailed. During the following debate a number of further topics were raised by the Chair, Mr PAASILINNA and Mr ONYSZKIEWICZ, including railway tariffs and other problems impeding WTO accession, administrative reform and the fight against corruption. Meeting with Members of the State Duma and Federation Council The meeting was opened by Mr Andrey KLIMOV, who underlined the European orientation of the Russian foreign policy and called for a common Europe without dividing lines. He regretted that the start of the negotiations on the new EU-Russia agreement has been delayed and hoped that the outstanding problems will be resolved soon. He argued that the new agreement should be based on positive experience and should be short and not too detailed. On behalf of the Federation Council, the delegation was welcomed by Mr Gennady GORBUNOV, the first Vice-Chair of its Foreign Affairs Committee and Co-Chair of the EU-Russia PCC. The Co-Chair evoked the parties' mutual interest in solving problems and avoiding double standards, e.g. when it comes to the recognition of independence of separatist territories, including Kosovo and former Soviet territories (Abkhazia, South-Ossetia, Transnistria). He informed the delegation on hearings on the latter issue on 13-14 March in the State Duma and a planned statement on this issue1. The Vice-Chair further mentioned the resurgence of Nazi ideology in Latvia. In response, Chair of EP delegation stated that EU and Russia should try to set ambitious goals for their relationship in the new partnership agreement, which should be legally binding, comprehensive but not necessarily long. She further raised a number of issues of concern, including the increase of corruption and spread of anti- Western sentiment in Russia, concerns over some infrastructure projects of Gazprom in Europe, as well as the need for diversification of the Russian economy and the decision of the European Parliament's political authorities to support the Sakharov Foundation. Finally, the Chair expressed hope that Russia will make progress on solving contentious issues hindering its accession to the WTO. 1 The State Duma issued a statement on "the Russian Federation’s Policy with respect to Abkhazia, South Ossetia and Transnistria" on 21 March 2008 (Secret). 4 During the following an exchange of views between European and Russian delegations Mr LAX, Mr BELDER, Ms HARMS, Mr ANGELAKAS, Mr LIKACHEV, Ms DIMITRIEVA, Mr KLIMOV, Mr ROGOZOV, Mr DRAGANOV, Mr PAASILINNA, Ms MORGAN, Mr ISCHENKO, Mr ONYSZKIEWICZ and Mr SEPPÄNEN raised questions on a wide range of issues, including energy security and energy efficiency, climate change, recognition of independence of former Soviet territories (South-Ossetia, Abkhazia, Transnistria), Kosovo, corruption, Baltic Sea Strategy for the Northern Dimension, Nord Stream project, Kaliningrad, visa facilitation, situation of the Sakharov Foundation, and Russia's WTO membership perspectives. The first day concluded with a working dinner with the representatives of the Association of European Business (Energy sector), where Members (Chair, Ms MORGAN, Mr LAX, Mr PALECKIS, Mr ANGELAKAS, Ms HARMS, Mr SEPPÄNEN, Mr