By Lewis Crofts - 20th April 2004
Brussels is sending its big guns to Moscow for trade and environment talks a week before a handful of former Soviet states enter the EU family.
Russia’s intransigence over the Kyoto emissions protocol and its desired entry into the World Trade Organisation will be the main points of discussion.
While agreement on revised trade terms – the so-called Partnership and Cooperation Agreement – between the two blocs nears completion, there are still outstanding issues which threaten to sully the “improved relationship”.
Europe is Russia’s main trade partner and is dependent on the green light from Brussels if it is to accede to the World Trade Organisation.
EU trade officials are, however, still sceptical about tariffs, services, the energy sector and other “very tough political issues”.
High-ranking EU trade diplomat Matthew Baldwin singled out the gas sector where Europeans have to pay “four to five times more” than domestic companies for Russian gas.
Such “price discrimination” will be addressed as will access to pipelines, state monopoly in the telecoms sector and tariffs on cars and aircraft.
Baldwin stressed that “the rhythm has intensified” but “neither side wants to negotiate substance against timing”.
While he denied there was “any linkage” between the WTO, PCA and Kyoto issues, Europe clearly wants to see movement on all three.
EU environment commissioner Margot Wallstrom will also be trying to talk her Russian counterpart into signing the Kyoto protocol which aims to reduce global emissions significantly by 2012.
In December, Andrei Illarionov, advisor to Russian president Vladimir Putin, stated however, “The Kyoto protocol places significant limitations on the economic growth of Russia."
European Commission president Romano Prodi is taking seven of his fellow commissioners to the Russian capital for two days of talks with their respective counterparts.
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