Russia to face sanctions threat

Brussels is set to threaten Russia with sanctions if it does not extend a mutual trade and political agreement to the ten new EU states by May.

The move towards a number of “safeguard measures”, which is expected to be announced on Monday at a meeting of EU foreign ministers, is part of a new EU drive to beef up its strategy towards Russia.

Moscow has so far refused to extend the Partnership and Cooperation Agreement (PCA) which governs its ties with Brussels to the ten new EU members, many of which were formerly Soviet states.

Russia fears that when the EU swells to 25 on May 1, its trade will be squeezed out of countries like Poland and Slovakia and it has demanded compensation.

But diplomats say that while the EU is keen to foster close political and trade ties with Russia patience is running out with Moscow’s increasingly strong-armed tactics.

“The EU is very happy to talk to Russia about its concerns and will try to help but it is not willing to be taken hostage,” said one EU diplomat.

Pressure has been building for the EU to adopt a “cleverer” and more unified approach to relations with Russia since a gaffe by Italian Prime Minister Silvio Berlusconi at a recent EU/Russia summit.

Berlusconi outraged colleagues by departing from the informal EU line, attacking media coverage of Russian affairs and strongly defending Russian President Vladimir Putin’s record in Chechnya.

The incident prompted a decision by EU leaders and the European Commission to put Europe’s position towards all aspects of relations with Russia in writing to enable it to “speak with one voice.”

The expected decision to threaten Russia with “safeguard measures” will form part of the overall strategy to be addressed by foreign ministers on Monday.

Council sources say the sanctions could follow the example set in previous EU/US trade disputes where the value of Russia’s refusal to extend the PCA is taken into account.

One diplomat said that EU member states were “united” that if Russia did not backtrack over its relations with the new countries by April that the countermeasures would be put in place. 

The process to define the terms of the measures would start by the end of March if Russia has not shifted ground, he said. 

A plan released by the European Commission last week will lay the basis for the wider EU policy towards Moscow.

The document centres on the testing issues of ratifying the Kyoto Protocol on climate change, media freedom, frozen conflicts in newly independent states and Chechnya.

 

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