Russian-European economic relations: impact of the enlargement of the EU

Olga Garanina ()
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Olga Garanina: LEPII - Laboratoire d'Economie de la Production et de l'Intégration Internationale - UPMF - Université Pierre Mendès France - Grenoble 2 - CNRS - Centre National de la Recherche Scientifique

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Abstract: This paper presents an analysis of the economic aspects of Russian-European relations. Our objective is to study the current situation and the prospects for developing Russian -European relations in the context of the enlargement of the EU (European Union). The inequality of the economies of the EU and Russia explains the mismatches of the objectives and visions of mutual relations and the asymmetry of the trade and economic flows (1). The impact of the EU enlargement on the trade flows between Russia and the EU seems to be limited. In fact, the effects of trade diversion already took place in connection with the dissolution of the socialist states of Eastern Europe and of the URSS. Moreover, the average tariff in the EU is lower than in the acceding countries ; and tariffs on imports of hydrocarbons and raw materials (which constitute the principal component of Russian exports) are usually low. Nevertheless, Russia refused to automatically extend the preferential agreements concluded with the EU to its new member countries (2). If the effects of trade diversion seem rather insignificant, the enlargement of the EU will involve problems of a political-economic character related to the elaboration and enactment of external economic policy measures regarding zones of joint interest between Russia and the EU. It concerns, in particular, the new eastern neighbours of the EU (Ukraine, Belarus and Moldova) and the Kaliningrad region (3). As for the future of the Russian-European relations, the achievement of the Common European Economic Space project is complicated by the non-coherence of the deep economic integration with the adjustment of Russia to European norms and Russia's desire to conserve its political sovereignty (4).

Keywords: European Union; economic relations; trade relationship; enlargment of the European Union Russia; relations économiques; relations commerciales; échange commercial; Russie; Union Européenne (search for similar items in EconPapers)
Date: 2005
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Published in Westphal, K. A focus on EU-Russian relations : towards a close partnership on defined roads maps ?, 15, P. Lang, pp.71-83, 2005, Schriften zur internationalen Entwicklungs- und Umweltforschung

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00100293

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