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Anasztázia KEREKE: International Economic Relationships <strong>of</strong> the Soviet Union … 479<br />

III. EU and Russian Federation<br />

Nowadays the European Union and the Russian Federation have a strong trade<br />

relationship, and the bilateral trade and investments continue to grow rapidly. Russia is<br />

Europe’s largest neighbour and one <strong>of</strong> its main partners. In the past decades, the<br />

relationship between Europe and Russia evolved from one <strong>of</strong> reciprocal hostility during<br />

the Cold War to a partnership. Each side is working towards strengthening the<br />

partnership, even though their relations have not met each partner’s expectations and<br />

Russia’s recent evolution is transforming them. Each has become a priority partner for the<br />

other and their relations are well developed and well-structured today. In addition to the<br />

well-developed bilateral relations with some <strong>of</strong> the European Union (EU) Member States,<br />

Russia has developed strong relations with the EU as a whole. (Mathieu, 2008)<br />

III.1. Relationships between EU Member States and Russia<br />

A key determinant in the development <strong>of</strong> the relations between the EU and Russia will<br />

be the position <strong>of</strong> some <strong>of</strong> new EU Member States, especially Poland and Lithuania,<br />

which have been quite critical towards Russia and the EU-Russia cooperation. It was<br />

clearly illustrated by their blocking <strong>of</strong> the talks on the replacement <strong>of</strong> the initial PCA. The<br />

Russian leadership has adopted a more confident posture on the international scene and<br />

openly criticized the West and Europe, for instance on NATO’s expansion or on the<br />

establishment <strong>of</strong> US missile defense infrastructure in Europe.<br />

Russia has emerged as the most divisive issue in the European Union since Donald<br />

Rumsfeld split the European club into ‘new’ and ‘old’ member states. We can identify<br />

five distinct policy approaches to Russia shared by old and new members alike:<br />

‘Trojan Horses’ (Cyprus and Greece) who <strong>of</strong>ten defend Russian interests in the EU<br />

system, and are willing to veto common EU positions;<br />

‘Strategic Partners’ (France, Germany, Italy and Spain) who enjoy a ‘special<br />

relationship’ with Russia which occasionally undermines common EU policies;<br />

‘Friendly Pragmatists’ (Austria, Belgium, Bulgaria, Finland, Hungary, Luxembourg,<br />

Malta, Portugal, Slovakia and Slovenia) who maintain a close relationship with Russia<br />

and tend to put their business interests above political goals;<br />

‘Frosty Pragmatists’ (Czech Republic, Denmark, Estonia, Ireland, Latvia, the<br />

Netherlands, Romania, Sweden and the United Kingdom) who also focus on business<br />

interests but are less afraid than others to speak out against Russian behaviour on human<br />

rights or other issues; and ‘New Cold Warriors’ (Lithuania and Poland) who have an<br />

overtly hostile relationship with Moscow and are willing to use the veto to block EU<br />

negotiations with Russia.<br />

Broadly speaking, the EU is split between two approaches – and each <strong>of</strong> the five groups<br />

tends towards one <strong>of</strong> the main policy paradigms. At one end <strong>of</strong> the spectrum are those<br />

who view Russia as a potential partner that can be drawn into the EU’s orbit through a<br />

process <strong>of</strong> ‘creeping integration.’ They favour involving Russia in as many institutions as<br />

possible and encouraging Russian investment in the EU’s energy sector, even if Russia<br />

sometimes breaks the rules. At the other end are member states who see and treat Russia<br />

as a threat. (Leonard–Popescu, 2007)

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