The European Union will formally recognize Russia as a market economy, said Spanish Prime Minister Jose Maria Aznar, whose country holds the rotating presidency of the European Union, at a news conference following the first day of the EU-Russia summit.
He said this decision was of great political significance, and it supported the economic course chosen by President Putin. Mr. Aznar also said that the European Union endorsed Russia’s bid to join the World Trade Organization.
Admitting Russia’s progress in establishing market relations in its economy, the European Union is ready to amend its legislation and grant market economy status to Russia, it is said in a joint statement following the talks. According to Russian Deputy Prime Minister Viktor Khristenko, the necessary legal procedures would take two or three months. At the same time, he criticized the view that Russia’s energy prices should meet world standards. “Such prices simply do not exist,” he noted.
For his part, European Commission President Romano Prodi also confirmed that the European Commission would take steps to formally grant Russia the status of a free economy. He said the work to encourage economic interpenetration between Russia and the EU would start within 1-1.5 years, as well as work to standardize laws and the system of state orders.
Mr. Prodi stressed that agreement had been reached on the definition of mechanisms for long-term gas supply contracts. And High Representative for Foreign and Security Policy of the EU Javier Solana said he was convinced that Russia and the EU had a common approach to a number of key international issues, such as the peace process in the Middle East and Afghanistan and the settlement of the Indian-Pakistani conflict. The EU and Russian leaders also stressed the importance of the non-proliferation of weapons and arms cuts.
A joint statement was released following the summit in Moscow, in which Russia re-affirmed its commitment to reforms aimed at liberalizing energy markets. Russia also pledged to gradually realize market economy principles in its energy policy, including pricing policies. Participants of the summit also confirmed their readiness to cooperate within the frames of the World Conference on Climate Change scheduled for 2003 in Russia. Russia and the European Union expressed satisfaction with the strengthening of a long-term partnership in the field of space research. The two sides also praised the creation of the new NATO-Russia Council and expressed their resolve to help stabilize the post-conflict situation in Afghanistan. In addition, Russia and the EU will cooperate to solve regional conflicts.
However, consensus was not reached on all issues. According to Russian President Vladimir Putin, the problem of the Kaliningrad region was the most contentious issue. “This is the most urgent question that should be solved before the expansion of the European Union,” he stressed. Putin said that Poland and Latvia should join the discussion of this problem. “This decision will become a litmus test for the relations between Russia and the EU,” he stressed. However, according to the President, the meeting was very productive, and progress was made in boosting the EU-Russia political and economic cooperation.
The European Union will formally recognize Russia as a market economy, said Spanish Prime Minister Jose Maria Aznar, whose country holds the rotating presidency of the European Union, at a news conference following the first day of the EU-Russia summit.
