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Image header Agence Europe
Europe Daily Bulletin No. 11445
Contents Publication in full By article 29 / 42
EXTERNAL ACTION / (ae) russia

Germany advocates economic rapprochement with EU

Brussels, 03/12/2015 (Agence Europe) - On the eve of the entry into force of the free trade agreement between the EU and Ukraine, which could poison the commercial tensions that already exist with Russia, Germany is seeking to convince the Commission to strike a deal with Russia, in an effort to prevent these relations deteriorating further.

To this end, the German Foreign Minister, Frank-Walter Steinmeier, is proposing that the EU should reach a deal with Russia on a joint statement containing initiatives on investments in the Russian economy and concessions in the energy field, in view of creating a more integrated economic area between the Pacific and Atlantic oceans, explained the Financial Times on Tuesday 1 December.

This proposal was formulated in a message sent by Steinmeier to the Commissioner for Trade, Cecilia Malmström, in November and seeks to “Create space and move towards Russia” and according to him, enjoys the support of the German Chancellor, Angela Merkel.

In this letter, Steinmeier explains “By the content of this declaration we could respond to Russia's wishes and begin a closer exchange of views on energy and investment protection issues, even if the (EU-Ukraine trade deal) does not directly touch on them”.

The other component mentioned by the German Foreign Minister would be to “raise the prospect of a start to cooperation between the EU and the Eurasian Economic Union, in combination with a peaceful solution in eastern Ukraine”.

Despite a common language confirming the entry into force of the free trade agreement between the EU and Ukraine on 1 January 2016 and the simultaneous continuation of three sided talks through the different bodies of cooperation, the EU, Russia and Ukraine did not manage to reach a satisfactory compromise during one of the endless trilateral ministerial meetings on Tuesday 1 December. Russia believes that the compromise does not sufficiently take into account their concerns related to the implementation of this agreement (see EUROPE 11444).

The three parties agreed to pursue their consultations at both expert and ministerial levels. A trilateral expert level meeting is expected to take place next week.

Russia applies a preferential trade regime with Ukraine but has threatened to abandon it and to extend the embargo imposed on the EU to Ukraine in respect of certain food products if its concerns are not taken into account in a legally binding document, which would require the reopening of the EU/Ukraine free trade agreement, which the EU rejects.

Trilateral consultations on the EU Ukraine free trade agreement form part of the Minsk peace agreement of 12 February on the conflict between Ukraine and pro-Russian rebels in the east of the country. (Original version in French by Emmanuel Hagry)

Contents

ECONOMY - FINANCE - BUSINESS
SECTORAL POLICIES
EXTERNAL ACTION
COURT OF JUSTICE OF THE EU
INSTITUTIONAL
NEWS BRIEFS