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(Moscow, 29 May, 2002)

Joint Statement

by V.V. Putin, President of the Russian Federation,

J.M. Aznar, President of the European Council, assisted by J. Solana,

Secretary-General of the EU Council/High Representative

for Common Foreign and Security Policy of the EU,

and R. Prodi, President of the Commission of the European Communities

We, the leaders of Russia and the EU, examined our bilateral cooperation in a comprehensive way, as well as a wide range of international problems. We underlined the importance of a strategic partnership between Russia and the EU, based on our full adherence to the UN Charter, obligations and commitments undertaken within the framework of the Council of Europe and the OSCE as well as on common values and mutual trust. We expressed strong determination to produce concrete results in our cooperation. For that purpose, we agreed to reinforce the positive tendencies which characterise our relations.

We reaffirmed our intention to continue making an effective use of the Partnership and Cooperation Agreement (PCA), as well as of the Russian Medium-term Strategy for Development of Relations with the European Union and the EU Common Strategy on Russia, in order to contribute to security and stability in Europe, develop trade and investment and strengthen a society based on respect for democratic principles and human rights. The defence of freedom of expression and the fight against xenophobia and discrimination on ethnic, religious or any other grounds, are fundamental elements for preserving these principles.

We intend to increase joint efforts to meet successfully common challenges, especially international terrorism, including access to weapons of mass destruction, as well as drug production and trafficking, illegal migration and other manifestations of organised crime, if necessary by establishing new mechanisms. In this context, we welcomed the meeting of our Ministers of Justice and Home Affairs on 25 April 2002 in Luxembourg. We agree that tackling all these issues, which are vital for our common security, is a priority for both Russia and the EU.

We confirmed our commitment to develop further the Russia-EU political dialogue. Russia and the European Union will make efforts to render their cooperation in the sphere of foreign and security policy even more result oriented and operational. To this end, we have adopted a separate declaration on further practical steps in developing political dialogue and cooperation on crisis management and security matters (Annex 1).

Aiming at a dynamic development of economic cooperation between Russia and the EU, we welcome:

    the progress report of the High Level Group on Common European Economic Space (CEES);

    the progress report on the energy dialogue which is annexed to our separate statement on this issue (Annex 2);

    the new dispute settlement mechanism which will allow a more effective use of PCA conciliatory procedures to resolve trade disputes.

We consider that early accession of Russia to the WTO will further integrate Russia into the world economy and deepen economic ties between Russia and the EU, thereby facilitating the establishment of the CEES.

Recognizing the achievements of the Russian Federation towards the establishment of market relations in its economy, the EU declared its intention to modify its legislation to grant Russia full market economy status.

The Russian Federation confirmed its intention to complete reforms, aiming in particular at the gradual elimination of restrictions to trade and other steps aimed at liberalization of its energy markets, and the gradual implementation of market principles in its energy policies, including with respect to pricing.

The pending EU enlargement will open new prospects for our relations but at the same time will possibly create new problems, including in the sphere of trade, economic cooperation and human contacts. We agree to discuss more actively the essence of the Russian concerns in the framework of the PCA.

Taking into account the legal and practical consequences of EU enlargement, Russia and the EU agreed to continue joint work with a view to reaching mutually acceptable solutions for the Kaliningrad region. This will be of key importance for the development of a strategic partnership between the Russian Federation and the European Union and for strengthening the atmosphere of good-neighbourliness and mutual understanding.

We noted that the environmental aspects of the Russia-EU relations are taking concrete shape in particular in the Northern Dimension framework. We therefore aim at having the Northern Dimension Environmental Partnership Fund operational as soon as possible. We will make every necessary effort to ensure that the Kyoto Protocol becomes a real tool for solving the problems of global warming as soon as possible. We also confirm our readiness to cooperate closely in preparing the World Conference on climate change to be held in Russia in 2003.

We confirm that the Russia-EC Science and Technology Agreement of 10 May 2001 has laid solid foundations for long-term cooperation in this field. We are encouraged by the drawing up of an action plan, structuring our Science and Technology dialogue and convinced that its implementation will contribute to the establishment of integrated scientific networks, and the development of joint research projects and therefore promote our international cooperation in the 6th Research and Development Framework Programme of the EU, to be launched in 2003. In that regard, we underline the important complementary role of related instruments to further enhance our science and technology cooperation, in particular International Association for the Promotion of Cooperation with Scientists from the New Independent States of the Former Soviet Union ("INTAS") for basic sciences and International Science and Technology Centre ("ISTC") for proliferation prevention and integration of scientists from the military sector into civilian research.

We express our satisfaction with the deepening of long-term partnership in the field of space research between Russia and the European Union, as well as between Rosaviakosmos and the European Space Agency. In this context, we look forward to the signing of a new Agreement between the Government of the Russian Federation and the European Space Agency on Cooperation and Partnership in Exploration and Use of Outer Space for Peaceful Purposes. We also encouraged experts on both sides to intensify their dialogue on issues of cooperation in development and operation of next generation space vehicles, global satellite navigation (GALILEO and Global Orbiting Navigation Satellite System ("GLONASS")) and monitoring systems (Global Monitoring for Environment and Security ("GMES")).

In the discussion on international affairs we emphasised the key importance of implementing and further strengthening non-proliferation regimes and of solving the problems of arms control and disarmament. We reaffirm our determination to deepen our dialogue and cooperation in this sphere, including the ongoing important EU contribution to existing relevant disarmament programmes in Russia. We will strengthen dialogue and cooperation on global security and stability. The EU welcomes the recent Treaty between the Russian Federation and the USA on Strategic Offensive Reductions.

The parties noted with satisfaction the creation of the new Russia-NATO Council which is a major positive step in strengthening comprehensive security in the Euro-Atlantic area.

We confirm our readiness to strengthen the central role of the UN in world affairs. We also stress the role of the OSCE, in accordance with adopted decisions and commitments, as a comprehensive regional organisation for consultations, decision-making and cooperation in the OSCE area. We are in agreement that full realisation of the OSCE potential in security, economic and environmental, and human dimensions, would allow for more effective action against new challenges to global and European security, including the fight against international terrorism.

Other international issues of common interest for Russia and the EU were also discussed. We confirmed a high degree of understanding during our discussion on regional problems, in particular on the situation in the Middle East on which we adopted a separate joint statement (Annex 3).

The parties had an extensive exchange of views on stabilising the situation in the Balkans. They agreed that it is essential to implement the UN Security Council Resolutions pertaining to the region and to ensure strict adherence to them, including respect for territorial integrity of the states in the region, by all parties concerned. It is also of vital importance to continue to implement the Ohrid Framework Agreement in the Former Yugoslav Republic of Macedonia as well as the General Framework Agreement in Bosnia and Herzegovina. We recalled the significance of the 14 March Agreement for the restructuring of relations between Serbia and Montenegro.

We are determined to promote efforts on the post-conflict rehabilitation in Afghanistan, possibly including joint projects, with the UN playing the central coordination role. We continue to support strongly the Bonn Agreement, and look forward to the success of the planned Loya Jirga. We call upon all Afghan parties to cooperate fully in this process.

We discussed with deep concern the recent deterioration of Indo-Pakistani relations, in the aftermath of the last terrorist attacks in Jammu and Kashmir and the military incidents at the border, as well as the missile tests carried out by Pakistan. We have adopted a Joint Statement on the development in Indo-Pakistani relations (Annex 4).

Russia and the EU will cooperate to resolve regional conflicts, including the Transdniestria issue in Moldova.

In conclusion, we agree that the Moscow summit is an important milestone in the development and strengthening of the strategic partnership between Russia and the European Union in the XXI century.


Joint Declaration

on further practical steps in developing political dialogue

and cooperation on crisis management and security matters

We are firmly committed to continue and to enhance our cooperation on political and security matters in Europe. We will act together to strengthen security for all in a Europe whole and free recognizing the principle of indivisibility of security, thus ensuring peace and stability for present and future generations of Europeans. Our cooperation is an integral part of global security and must serve as a stable foundation for world stability.

We have achieved a significant degree of success in our cooperation. We base ourselves on the Joint Declaration on Strengthening Dialogue and Cooperation on Political and Security Matters in Europe, adopted in Paris on 30 October 2000, and the Joint Statement on Stepping up Dialogue and Cooperation on Political and Security Matters, approved at Brussels on 3 October 2001. We note with satisfaction the good results of our political dialogue at all levels since the last Summit. This allows us to make further significant steps in Brussels, Moscow and elsewhere, as appropriate, towards closer cooperation and joint action.

Our activities in that sphere will take into account the evolving situation in Europe in the field of security as well as EU developments.

We agreed to deepen significantly our political dialogue and cooperation on crisis management and security matters. The Russian Federation has proposed a "RussiaEU Action Plan in the field of European Security and Defence Policy".

The EU has informed the Russian Federation on the decision taken recently by its Foreign Ministers to submit to the upcoming Seville European Council its "Arrangements for Consultation and Cooperation between the European Union and Russia on Crisis Management", with a view to cooperating in crisis management operations led by the European Union.

We will conduct a comparative analysis of our respective crisis response concepts in order to develop common approaches to new political and strategic realities.

We have also taken an important step to promote practical information exchange on military crisis management matters through the assignment of a Russian contact person with the EU Military Staff.

Furthermore, a visit of the Chairman of the EU Military Committee to Moscow to meet with the Russian military authorities has taken place on 29 May 2002.

We have identified the following issues which will be held under regular review in the framework of our frequent political dialogue on foreign policy and security issues at different levels:

- conflict prevention,

- mine clearance,

- possible use by the EU of Russian long-haul air transportation,

- the modalities for possible Russian participation in the EU Police Mission in Bosnia and Herzegovina.

The EU and Russia will inform each other of the results of their key international contacts and negotiations on matters related to security and crisis management.

The EU and Russia will discuss specific aspects of their cooperation in conducting emergency search-and-rescue operations in response to natural disasters and catastrophes, as well as in delivering humanitarian aid to various regions of the world in situations related to crisis management.

We agreed to engage in further dialogue on concrete proposals for cooperation and joint action. The PSC Troika and the Russian Ambassador to the EU will play an important role in coordinating this work. We will review progress in these areas at the next Russia-EU summit on 11 November 2002 in Copenhagen.


Joint Statement on energy dialogue

Taking note of the report presented by the two sole interlocutors on the progress in Russia-EU energy dialogue we note with satisfaction that it has preserved its dynamism and its pragmatic approach. Work is progressing on the agreed areas of the energy dialogue, including preparations for establishing the EU-Russian Energy Technology Center in either Moscow or St.Petersburg, continual examination of long-term EU and Russian energy policies and relevant energy standards, evaluation of pilot energy saving projects in the Archangelsk and Astrakhan Oblasts, which could then serve as a basis for other regional projects, in particular in the Kaliningrad Oblast, and the facilitating of investment projects in Russian energy sector would help to progress the achievement of the strategic goal of an energy partnership - enhancing the energy security of the European continent.

We recognise that the EU energy market is now becoming the world's largest and most integrated, and that Russia deserves to gain access to it. We note the importance of enhancing trade in primary energy between the EU and Russia, and therefore will jointly examine those areas which should strengthen our energy relations.

We underline the importance of long-term contracts for natural gas, in particular to guarantee the financing of identified "projects of common interest". The limited question of destination clauses is moving towards a mutually acceptable agreed solution. Technical assistance to ensure the swift joint examination of the projects of "common interest" will facilitate their realisation by bringing together all interested parties.

With respect to electricity, recognising that, for certain issues to be resolved, a timetable needs to be established, namely reciprocity in market access and environmental and nuclear standards, the first steps toward the facilitation of trade through a sound legal base have been taken and a dialogue has been initiated. A sound legal base is necessary so that market operators can achieve a technically possible interconnection which, whilst bringing gains in trade to both sides, retains the high level of system reliability demanded by European consumers.

The existing situation with respect to the import of nuclear materials to the EU member-states is a matter of concern for the Russian side. We agreed in accordance with Article 22 of the PCA and in the context of EU enlargement, to reach a mutually acceptable solution.


Joint Statement on Middle East

We reiterate our deep concern for the evolving situation in the Middle East, which, over the last eighteen months has brought an unacceptable level of human loss, and destruction, grave damage to both Israeli and Palestinian societies. The negotiations have been interrupted and the prospects for a political solution have been held back. We believe that this critical situation entails a significant risk to regional stability and security. We reaffirm the need for the International Community to sustain all initiatives conducive to a peaceful solution of the conflict, for the benefit of all parties, Israeli, Palestinian, Syrian and Lebanese.

We recall the objective of such a solution, as defined also in the visions and proposals of all relevant actors in the international community, in particular the members of the Quartet in their Joint Statement of 10 April 2002, and the Arab League in the conclusions of the Beirut summit which endorsed the initiative of the Kingdom of Saudi Arabia. We reiterate that there is no military solution to the conflict and recall the need for a comprehensive political solution based on the principles of the Madrid Conference of 1991, UNSCR 242 and 338 and the formula of "land for peace". We reaffirm our support for the objective expressed by President Bush and in UNSCR 1397 of two States, Israel and Palestine, living side by side within secure and recognised borders.

We urge the parties to benefit from the present opportunity to overcome the crisis by resuming a meaningful dialogue, dealing in parallel with its political, economic and security aspects. And we call on all parties of the conflict to take immediately the steps allowing the proper development of such a process, including full implementation of UNSCR 1402 and 1403. We remain convinced that the thorough preparation of an international Conference on this subject, as considered in recent weeks at different levels and fora, is a most urgent task. The EU and Russia will work within the framework of the "Quartet", as well as in their contacts with the parties of the conflict and other interested actors in the International Community towards the convening of a successful conference.

Annex 4


on the Developments in Indo-Pakistani Relations

Russia and the EU follow with concern the dangerous situation developing in Indo-Pakistani relations. The current increasing tension, which is fueled by continuing provocative actions conducted by Kashmir extremist organizations, threatens stability in the entire South Asia region. Terrorist acts committed in the Indian state of Jammu and Kashmir have taken the toll of dozens of lives among civilians including children. They make Pakistan suffer as well. These terrorist attacks must end to ensure peace and security in the region.

The tests of medium and small-range missiles just carried out by Pakistan, in our view, can not but aggravate the already worrying situation in South Asia and run counter to the readiness expressed many times by Pakistani leaders to act together with the international community in an effort to seek a political settlement of the crisis.

Aware that terrorism is the common enemy of us all, we hope that both Governments will make efforts to avoid a spiral of confrontation of unpredictable consequences, and that they will promptly do whatever necessary to reduce tensions as the first step to the resumption of a productive dialogue in order to peacefully solve the differences.

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