Brussels, 20/04/2007 (Agence Europe) - Confidence in bilateral relations between the Union and Russia has not been this low since the collapse of the Soviet bloc, said Peter Mandelson speaking at a conference in Bologna, Italy, on Friday. “The EU-Russia relationship contains a level of misunderstanding or even mistrust we have not seen since the end of the Cold War”, the trade commissioner said, going on to warn: “Unless we comprehend our different perceptions of what has happened since the end of the Soviet Union we risk getting the EU-Russia relationship badly wrong”. In his view, Russia often interprets Europe's engagement in the former Soviet Union “not as the concern of a friendly partner, but the encroachment of a self-interested neighbour”. Mr Mandelson also spoke of discussion engaged with Moscow on the theme of democracy which, in his view, is not conclusive at this stage. “On the key issues - pluralism, rule of law, freedom of speech, economic freedoms - I am sure that EU policies are correct and that we should say so”, stressed the commissioner. Furthermore, Mr Mandelson, who was highly critical of Russia's president, Vladimir Putin, for having placed large areas of the Russian economy under state control, called on the Kremlin not to increase the weight of the state in the Russian economy as foreign investors fear. Finally, he called on Moscow to implement reforms leading to an “independent and transparent” rule of law, without which Russia would, as he sees it, be “trapped in the false strength of a petro-state”. (eh)