EUROPEAN PARLIAMENT

EU- 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 , 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 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 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 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 PAASILINNA, Mr ONYSZKIEWICZ) discussed issues concerning EU-Russia energy relationship, including the solidity of Russia as an energy provider, the 3rd energy liberalisation package, current pipeline projects, energy efficiency, as a transit country, as well as the Strategic Sectors Bill and problems with visas/work permits.

Wednesday, 19 March 2008

Meeting with Mr Anatoly YANOVSKY, Deputy Minister of Energy

Mr YANOVSKY opened the meeting with the remark that the energy relations between the EU and Russia are getting deeper and more diversified, while continuing to be mutually beneficial.

On behalf of the EP delegation, Ms OOMEN-RUIJTEN confirmed strong mutual interests and together with Ms MORGAN gave an overview of the discussions of the energy matters at the EP, which are driven by the internal EU issues but may effect Russia, including the 3rd energy liberalisation package and its third country access clause (so-called Gazprom clause), energy efficiency and liberalisation of electricity and gas markets.

During the debate, Mr PAASILINNA, Ms VAIDERE, Mr ONYSZKIEWICZ, Mr LAX and Mr TABAJDI raised questions on climate change, Russia's position on the Energy Charter Treaty, the solidity of Gazprom and , Russia's energy cooperation with China and India, Russia's position on Nabucco, the need for an independent environmental assessment and transparency for the Nord Stream project, nuclear energy and renewables, gas pricing disputes with Ukraine and other CIS countries.

Meeting with NGOs

The representatives of the Russian NGOs, namely Carnegie Moscow Centre, Golos (election observation) and Centre for Democracy and Human Rights, shared with the delegation their worries about the deteriorating situation of democracy in Russia.

5 The delegation learnt from the representatives of the civil society that the rule of law continues to be undermined in Russia, the democratic institutions weakened, the activity of free media and nongovernmental organizations restrained and human rights violated.

However, the representatives of the Human Rights Watch admitted that although far from satisfactory, the situation in Chechnya has improved, as the number of disappearances and torture cases has decreased. Nonetheless, the civil society has been completely wiped out and the NGO "Memorial" continues to be under pressure.

The representative of the Carnegie Centre analysed the governmental authorities' approach towards the civil society and the media and described the key features of their policy as follows:  to marginalize and drive irrelevant all those forces and voices that wouldn’t pledge loyalty;  to insulate the bulk of the population as much as possible from such ‘trouble- makers’;  to ensure that those who have the money wouldn’t associate with such ‘troublemakers’ by way of financing their activities or joining their ranks.

NGO Golos recited violations during the recent Russian parliamentary and presidential elections, including double counting and pressure on voters to vote at their work places.

The ensuing debate concentrated on media pluralism, human rights violations, the restrictions of the new NGO law and foreign assistance to the Russian NGOs.

6 ANNEXES

7 DELEGATION TO THE EU-RUSSIA PARLIAMENTARY COOPERATION COMMITTEE

STATEMENT

by Ms Ria OOMEN-RUIJTEN, Chair of the Delegation to the EU-Russia PCC

First EU-Russia Parliamentary meeting after elections: fresh beginning of new era Moscow, 19 March 2008. During a two day visit to Moscow a delegation of 15 members of the European Parliament had meetings with their counterparts from the Duma and the Federation Council, deputy Prime Minister NARYSHKIN and the deputy Minister of energy, Mr. YANOVSKY. According to Ria OOMEN-RUIJTEN, head of the EP delegation, the discussion showed a clear determination on both sides to step up efforts towards the conclusion of a new EU-Russia Agreement. “In an open and in-depth discussion with our new colleagues of the Duma and the Federation Council we addressed issues such as the strategic sectors bill, visa facilitation and the EU internal energy market legislation. This frank discussion was possible thanks to a collegial atmosphere of mutual trust. It definitely is a refreshing and hopeful signal for EU- Russia relations.” "This does not mean that we agree on all points". Among the more controversial issues discussed were the legislation on NGOs and election observation missions. The chair stressed her full support for the work and the statements issued by OSCE / ODIHR and PACE. "This is not to be understood as an intrusion into domestic affairs – but normal practice for all elections in OSCE and member states." The delegation particularly appreciated the exchange of views with deputy prime-minister NARYSHKIN. During this meeting, which lasted for almost two hours, several crucial items were discussed such as WTO accession, administrative reform and the fight against corruption. Furthermore the EP delegation and Mr. NARYSHKIN agreed that the negotiations on the new Partnership and Cooperation Agreement should start as soon as possible. “It is clear for both sides that the agreement should be a legally binding – comprehensive but not encyclopedic", concluded Ria OOMEN-RUIJTEN. Energy matters were discussed with Mr. YANOVSKY, deputy Minister of Energy. The discussion focused on energy security and the legal aspects linked to unbundling in EU proposals. The minister also commented on the main reasons for Russia's refusal to ratify the Energy Charter Treaty. Negotiations are presently taking place in order to find a solution to this problem. As far as the

8 North Stream project is concerned, the Russian side declared that it will address all ecological issues as defined in international treaties in this field. This joint parliamentary meeting has prepared the ground by creating an atmosphere of mutual trust. There is also a general agreement among the members of the Parliamentary Cooperation Committee that an early involvement of elected members of Parliament is indispensable for successful negotiations on the new agreement.

Follow-up meetings of the Parliamentary Cooperation Committee, which celebrated its 10 anniversary last year, are scheduled in for June.

9 EUROPEAN PARLIAMENT

DELEGATION FOR RELATIONS WITH RUSSIA

EU-RUSSIA PARLIAMENTARY COOPERATION COMMITTEE

WORKING GROUP

MOSCOW State Duma

Tuesday, 18 March 2008 14h30 - 18h00

Draft agenda

14h30 Opening of Working Session in State Duma

Opening remarks by Co-chair Mr. Andrey KLIMOV Opening remarks by Co-chair Mrs Ria OOMEN-RUIJTEN

1. EU-Russia Relations Introduction by Mr. Janusz ONYSZKIEWICZ - exchange of views

2. EU-Russia Energy dialogue Introduction by Mr. Reino PAASILINNA, Deputy chair and Mrs. Eluned MORGAN, rapporteur - exchange of views

3. EU-Russia Trade Relations Introduction by Mr. Janusz ONYSZKIEWICZ, Rapporteur - exchange of views

4. Any other business

5. Date and Place of next PCC meeting

18h00 Conclusion of meeting by the Co-chairs

______11.03.08 SP/cs

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EU-RUSSIA PARLIAMENTARY COOPERATION COMMITTEE

WORKING GROUP 17 - 19 March 2008 MOSCOW

PROGRAMME

Programme Coordination and Contacts:

European Parliament Russian State Duma

Stefan PFITZNER Mr Gleb RESHETNIKOV  +32-2 284 2604  +7 495-692 2626 [email protected] Fax +7 495-692-3513 [email protected] Sarah WHITTALL  +32-2 284 23 04 [email protected] Federation Council Claudia SIEGISMUND Mr Maxim TOKAREV  +32-2 284 22 93  +7 495 623 5678 [email protected] Fax : +7 495 692 5896 Fax : +32-2 284 68 30 [email protected] Mobile during mission: +32 - 475 977 002

Monday, 17 March 2008

Individual Arrival of members and staff of the European Parliament delegation at Moscow Airport

Taxi to Hotel Baltschug Kempinski Ul. Baltschug 1, 115035 Moscow Tel. +7 495 230 5500 - Fax: +7 495 230 5502

11 Tuesday, 18 March 2008

07h30 Departure from hotel by bus

08h00- Briefing with Mr Marc FRANCO, Head of EC Delegation, 09h15 and EU Ambassadors Slovenian Ambassador Andrej BENEDEJCIC French Ambassador Stanislas de LABOULAYE UK Ambassador Anthony BRENTON venue: European Commission Residence, Bolshaya Polyanka 11/14,  +7-095-935.7663

09h15 Transfer to White House venue: Krasnopresnenskaya nab. 2

10h00 Meeting with Mr Sergey NARYSHKIN, Deputy Prime Minister

11h45 Transfer to State Duma

13h00 Lunch with Members of the State Duma and Federation Council venue: State Duma, Okhotny Ryad Str. 1

14h30- Meeting with Members of the State Duma and Federation Council 18h00 venue: State Duma, Okhotny Ryad Str. 1

20h00 Meeting followed by dinner with the Association of European Business (Energy Sector) venue: European Commission Residence, Bolshaya Polyanka 11/14,  +7-095-935.7663

Wednesday, 19 March 2008

08h15 Departure from hotel by bus

09h00 Meeting with Mr Anatoly YANOVSKY, Deputy Minister of Energy venue: Kitay-Gorodsky Proezd 7

10h30 Departure to Commission Delegation Residence

11h00 Meeting with NGOs venue: European Commission Residence, Bolshaya Polyanka 11/14 Masha Lipman (Carnegie Moscow Centre; expert on media freedom, civil society, domestic politics) Lilia Shibanova (Golos; electoral observation NGO) Yury Dzhibladze (Centre for the Development of Democracy and Human Rights; expert on civil society and on the situation of Russian NGOs).

12h30 Press point venue: European Commission Residence, Bolshaya Polyanka 11/14,  +7-095-935.7663

PM Individual departures

12 EUROPEAN PARLIAMENT

EU-RUSSIA PCC WORKING GROUP

17 - 19 March 2008 Moscow

List of Participants

Members :

Ms Ria OOMEN-RUIJTEN PPE-ED, Netherlands Chair Mr Reino PAASILINNA PSE, Finland 1st Vice-Chairman Mr Esko SEPPÄNEN GUE/NGL, Finland 2nd Vice-Chairman

Mr Emmanouil ANGELAKAS PPE-ED, Greece Mr Bastiaan BELDER IND/DEM, Netherlands Ms Rebecca HARMS Greens/ALE, Mr Metin KAZAK ALDE, Bulgaria Mr Henrik LAX ALDE, Finland Ms Eluned MORGAN PSE, United Kingdom Mr Justas PALECKIS PSE, Lithuania Mr Rihards PIKS PPE-ED, Latvia Ms Gabriele STAUNER PPE-ED, Germany Mr Csaba TABAJDI PSE, Hungary Ms Inese VAIDERE UEN, Latvia

Mr Janusz ONYSZKIEWICZ ALDE, Poland Rapporteur

Abbreviations : PPE-DE European People's Party/European Democrats GUE/NGL European United Left/Nordic Green Left PSE Party of European Socialists UEN Union for Europe of the Nations ALDE Alliance of Liberals and Democrats for Europe IND/DEM Independence and Democracy Greens/ALE Greens/European Free Alliance NI Non-Attached

13 Secretariat of the Delegation :

Mr Stefan PFITZNER Administrator responsible Ms Elina VIILUP Administrator Ms Sarah WHITTALL Assistant Ms Claudia SIEGISMUND Assistant

Secretariat of the Political Groups :

Mr Kai WYNANDS Political Advisor, PPE-ED Group Mr Ciprian MATEI Political Advisor, PSE Group Mr Rune GLASBERG Political Advisor, ALDE Group Mr Paolo BERGAMASCHI Political Advisor, Greens/ALE Group Ms Melinda GIJSBERTSE Political Advisor, IND/DEM Group

Accompanying persons :

Mr Michèle BEUNEN Assistant to Ms Oomen-Ruijten Mr David DORANYI Assistant to Mr Tabajdi Mr Tamas KENESSEY Assistant to Mr Tabajdi

Interpreters (EN/RU/NL):

Russian Mr Alexey FOKIN Mr Vadim NIKITIN Mr Nikolai ZAITZEV

Dutch Ms Janny VAN DOORN Ms Veerle DUFLOU

______11 March 2008/cs

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