The Newly Independent States

The EU is building a stronger partnership with Russia to take mutual advantage of the benefits of enhanced co­operation in areas such as energy, foreign policy, justice and home affairs and environment. The Partnership and Co­operation Agreement (PCA) with Russia provides a basis for political dialogue and wide­ranging co­operation including work related to Russia's application for WTO membership. The development of EU­Russia relations within the PCA framework was given new momentum at the EU­Russia Summit in October 2001 when agreement was reached on a High Level Group to develop a concept for a Common European Economic Space.

Russia welcomes EU enlargement and expects the EU to consider carefully its impact on Russia. Such issues are discussed in the Partnership and Co­operation Agreement institutions with a view to resolving any problems that might arise before enlargement. The case of Kaliningrad has been raised in this context. The Commission tabled a discussion paper in 2001 which examines the impact of enlargement on Kaliningrad and which also looks at other issues of mutual interest such as protection of the environment in the Baltic Sea region. It is in the EU's and Russia's mutual interest to ensure that Kaliningrad can gain from the beneficial economic consequences of enlargement. Practical issues like visas and border formalities for travel between Kaliningrad and the rest of Russia need to be discussed with a view to finding constructive solutions within the acquis.

The EU also has Partnership and Co­operation Agreements with Ukraine and Moldova and is committed to helping these two countries in their process of political and economic transition and progressive alignment with European laws and practice. They have both been invited to participate in the European Conference and are active in regional and sub­regional groups involving EU Member States, candidate countries and the countries participating in the Stabilisation and Association process. Belarus also borders on the future EU but relations are limited on account of the country's poor record on democracy, human rights and the rule of law.