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Europe Daily Bulletin No. 7641
THE DAY IN POLITICS / (eu) eu/gac/russia

Council decides Tacis 2000 must be refocused on democratic objectives and calls on Commission to prepare retaliatory trade measures

Brussels, 25/01/2000 (Agence Europe) - After a lengthy discussion, the General Affairs Council on Monday reached an agreement to take "additional measures" against Russia, in conformity with the guidelines set out by the European Council in Helsinki. During the final press conference, Mr Gama announced that the Fifteen had thus called on the Commission to redirect the Tacis 2000 programme so that it might finance projects of a kind that would directly promote democratic values, and devote the unused funds for humanitarian assistance. The Council also invited the Commission not to go too far, for now, in its reflection on the possibility of extending the generalised preferences that Russia enjoys, and expressed its concern about the failure, by Moscow, to comply with the commitments made within the framework of the Partnership and Cooperation Agreement or sector-specific agreements. "There will be retaliatory measures further to the tax duties that Russia imposes on scrap exports", announced Mr Gama. He went on to specify that the EU was no less "open to political dialogue" with the Russian authorities. We give below the Council Conclusions:

"The Council discussed the situation in Russia. It welcomed the democratic conduct of the recent Duma elections and the smooth, constitutional transition of power after the resignation of President Yeltsin. It looks forward to a free and fair campaign leading up to the Presidential election on 26 March. The Council underlines Russia's importance as a major partner of the EU. The EU would like to continue to build and develop this long-term strategic partnership with a view to enhancing security and stability in Europe and beyond. To this end, it is ready to continue its political dialogue with Russia in order to address questions of mutual interest, including issues of disagreement and concern such as the conflict in Chechnya. The Council stresses that a long-term strategic partnership between the EU and Russia can only be developed successfully if it is based on common values and shared objectives, in particular respect for human rights, the rule of law and freedom of information and the media. To this end, it calls on the new political leadership in Russia to act to ensure that Russia lives up to the standards expected from all members of the community of free and democratic nations.

The Council reiterates the EU's deep concern about the continuing violence in Chechnya and repeats its condemnation of the indiscriminate use of force by the Russian authorities, which has led to a worsening of the humanitarian situation. The military campaign will only further antagonise the civilian population in Chechnya and make a long-term political solution increasingly difficult.

The Council does not question the right of Russia to preserve its territorial integrity. It emphasises its great responsibility at the same time to handle the crisis in full respect of its obligations under international humanitarian law. It took note of acting President/PM Putin's assurance that he will fully inform the EU about the Russian position on current developments and its compliance with international norms and standards. The European Union will continue to press for de-escalation of the violence leading up to a rapid cease-fire and a solution to the crisis through political dialogue. It will continue to give its full support to the efforts of the CiO of the OSCE and in the Council of Europe to the same end. The Council calls on the Russian Government to continue to engage in discussions with international humanitarian operators, including EU NGOs, with a view to identifying and removing obstacles to the speedy and efficient delivery of international relief to IDPs. It expresses the EU's willingness as a major donor to participate in such discussions.

In light of the above, the Council welcomes the action taken to follow up the declaration of the Helsinki European Council, notably the revision of the Presidency's work plan for the implementation of the Common Strategy of the EU, the suspension of the signature of the Scientific and Technological Agreement and the Commission's decision not to carry over 30 Meuros of unspent funds of food aid from 1999 to the 2000 budget. In addition, the Council invited the Commission to re-focus the Tacis 2000 programme to core areas directly promoting democratic values, and to transfer uncommitted balances to humanitarian assistance, and promoting networking in the civil society, as well as to suspend consideration of the possible extension of additional GSP preferences for Russia. The Council invited the Member States to align themselves with the above measures, which the Council will keep under review in the light of developments. The Council also expressed its concern about the increasing number of trade disputes originating from infringements by Russia of the PCA as well as sectoral agreements. These agreements should be strictly implemented. It noted the Commission's intention to bring forward counter measures against the Russian tax on exports of ferrous scrap. It invited the Commission to press ahead with similar action in other areas of EU concern. At the same time, the Council underlines that the EU remains open to consultations with Russia and hopes that it will take the necessary measures to comply with the provisions of its agreements with the EU".

Speaking to a journalist who raised questions concerning the conformity of the solution whereby the Council "welcomed the democratic unfolding of legislative elections" with the Conclusions of the Helsinki Summit, Jaime Gama replied it was necessary to "read the Conclusions as a whole, the beginning but also the end". "I consider that the decisions taken faithfully implement the spirit and the letter of the European Council Conclusions", Commissioner Chris Patten affirmed for his part. While Mr Gama felt that one could "expect that the associated countries of Central and Eastern Europe associate themselves" with the Conclusions, Mr Patten gave the following details concerning: Tacis 2000: its allocation is some EUR 130 million and re-targeting concerns more or less EUR 40 million. The difference will remain available for Tacis if there is an evolution in Russia's attitude, or will serve humanitarian aims (the Commissioner observed in this respect that the minimum security conditions still do not exist for carrying aid to Chechnya); scrap iron: Mr Patten said the matter would be discussed in coming days. He explained that changes in customs duties would result, according to the Union, from violation by Russia of its commitments. He went on to explain that he could not yet quantify a decision of principle which has not yet been taken. (Member States must come to an agreement with us, he said); extension of the generalised system of preferences: while this covers about EUR 120 million, the "Russians are calling for another 60 million". This is the last amount concerned by the Council's request.

Contents

THE DAY IN POLITICS
GENERAL NEWS
ECONOMIC INTERPENETRATION
SUPPLEMENT