The EU and the CIS

The EU is forging a network of far-reaching partnerships with countries of the former Soviet Union and is at the forefront of international efforts to support them in carrying out political and economic reforms. To this end, it has signed Partnership and Cooperation Agreements (PCAs) with Russia, Kazakhstan, Kyrgyzstan, Ukraine, and Belarus. These provide for political, economic and trade relations and lay the basis for cooperation in the social, financial, scientific, technological and cultural fields. Ratification of the Partnership and Cooperation agreement with Russia was delayed by European objections to Russian conduct of the conflict in Chechnya, but it finally came into force in December 1997. The first Cooperation Council under the new agreement was held in January 1998, yielding agreement on a comprehensive work plan for the short and medium terms.

The EU is the major trading partner for Russia and most of the newly independent states, accounting for 40 to 50% of their global trade. In 1996, EU imports from the Commonwealth of Independent States ($31.1 billion) were five times greater than the comparable US figures ($6.75 billion). The PCA with Russia provides for talks on the possibility of free trade with Russia, as part of the EU's vision of liberalizing trade throughout the continent. Building on the PCA, a new EU Common Strategy on relations with Russia was adopted in June 1999.