Sun, 18:05 28 Dec 2008 GMT17

 

EU, Russia seek to put ties back on track
13 Nov 2008 23:22:50 GMT
Source: Reuters
By David Brunnstrom and Oleg Shchedrov

NICE, France, Nov 14 (Reuters) - Facing a common threat from global economic turmoil, leaders of the European Union and Russia will seek on Friday to revive closer ties despite divisions over Georgia.

Meeting in the French resort of Nice, the EU led by French President Nicolas Sarkozy and Russia's President Dmitry Medvedev will look for common ground before heading to join a G20 summit of the world's top economies in Washington.

EU states on Monday agreed to relaunch talks on a broad partnership pact frozen after Russia's August military incursion into Western ally Georgia. The two sides are expected to discuss a date for that.

Leaders plan to focus on the financial and economic crisis and the Europeans will air concerns about security of energy supplies from Russia, the bloc's number one supplier of gas and number two supplier of oil.

European Commission President Jose Manuel Barroso said more cooperation was in the interests of both sides and the EU sought a clear signal from Russia.

"Sometimes we do receive contradictory signals -- mixed messages," he told reporters. "The summit will be very important so we can ascertain to what extent Russia truly is prepared to make a commitment ... not just to energy, but to engage in a constructive dialogue with the European Union."

Medvedev said Russia hoped to see relations pushed forward and he pledged Moscow would remain a reliable energy partner.

"We want transparent relations with all states which buy our energy resources, including those in Europe," he told a meeting of business leaders in Cannes. "We should look into the future ... I hope tomorrow we will give an impetus for more intensive talks. We are ready to start as early as tomorrow."

LACK OF TRUST

The 27-nation EU wants to prevent its reliance on Russian supplies growing after disputes between Moscow and transit states disrupted supplies in recent years and Russia's incursion into Georgia which has stoked tension with the West.

EU officials say Russia's action in Georgia and Medvedev's threat to station missiles near EU member Poland have undermined trust. They say the decision to resume talks was based on necessity, not acceptance of Russian actions.

Russian Prime Minister Vladimir Putin did little to calm EU unease on Wednesday when he warned Moscow may scrap its Baltic Sea gas pipeline project, Nord Stream, and build liquefaction plants instead if Europe keeps delaying the project.

The pipeline, due to link Russia and Germany, has sparked protests in EU countries such as Poland, Lithuania and Estonia, angered at being shut out of a key gas supply route.

Putin did though offer a concession in a dispute that has held up EU ratification of Russia's bid to join the World Trade Organisation. Moscow would delay bringing in prohibitive duties on raw timber exports that threaten industries in Sweden and Finland, he said.

Barroso stressed the "interdependence" of the EU and Russian economies, which had been emphasised by the financial crisis and the plunge in oil prices, which had also hurt Russia.

EU officials say the summit will not aim for a joint position ahead of the G20 but would see some convergence.

Barroso said the financial crisis showed the need to change some of the basics of global governance. Medvedev said he was working with Europeans on such ideas.

"Our positions often coincide, sometimes even in details," he said. "I am sure in Washington we will be speaking one language." (Editing by Richard Balmforth)
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Georgia's interior ministry troops accompanied by a Cobra light armoured vehicle patrol a road near South Ossetia's de facto border some 100 km (62 miles) north-west of Tbilisi, December 28, 2008. ...



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