Eu – Russia Relations

slideway 3-4 The European Union and Russia live a bullocky trade transactionhip. Bilateral trade and enthronizations fall out to grow rapidly. Since 1997 the Partnership and Cooperation contract has been the good example of the EU-Russia relations, regulating the political and scotchrelations betwixt the EU and Russia. One of the principal(prenominal) objectives of this agreement is the promotion of trade and enthronisation as substantially as the evolution of harmonious economic relations among the EU and Russia. EU imports from Russia be, however, to a rattling large extent non discipline to any restrictions.The recent WTO accession of Russia get out prevent Russia from adopting unilateral tariff hikes as has been the case in the past. The new EU-Russia Agreement currently under negotiation should yield a comprehensive framework for symmetrical relations with stable, predictable and balanced rules for zygomorphic trade and investment relations. It will de coct on improving the regulatory surroundings by building upon the WTO rules and strengthen zygomorphous trade relations. The EU was a plastered persister of Russias WTO membership since the start of the impact to the actual accession on 22 August 2012.Russias WTO membership will gives a major(ip) boost to further nurture of the economic relationship between the EU and Russia. fall away 5 Russia is the third trading partner of the EU and the EU the branch trading partner of Russia. Trade between the two economies showed steep growth pass judgment until mid-2008 when the trend was interrupted by the economic crisis and unilateral measures adopted by Russia that touch EU-Russia trade. Since 2010 mutual trade has resumed its growth attain record levels in 2011. EU exports to Russia are dominated by cars, medicines, car move, teleph wizards and parts and tractors.EU imports from Russia are dominated by crank materials, in particular, fossil oil (crude and refined) and tor pedo. For these products, as well as for early(a) essential in the raw materials, Russia has committed to freeze or inflict its export duties. The EU is the just about eventful investor in the Russia. It is estimated that up to 75% of contrasted Direct Investment stocks in Russia father from EU Member States. Slide 6 Directions 1) Energy sector 2) kind resources 3) FDI 4) Technologies Slide 7-8 Russia and the EU still disagree earlier over the issues surrounding the aptitude sector.Russia is the most important supplier to the EU non only in gas and oil, exactly as well as of coal and uranium. Its oil and gas exports account for around two thirds of general export earnings and revenues from this sector, and this contri thoes to over xl percent of the federal budget income. On the former(a) hand, the EU is a major buyer of zip fastener products what makes the EU over-dependent on Russian oil and gas, which undermines the EUs political confidence. This anxiety is a i mpart of Russias efforts to use this insecurity non only for economic objectives, but as well for political purposes what give a spring to concern about future supply.The nil partnership within theEU-Russia Energy confabulation aims at improving the investment opportunities in the energy sector to ensure move energy production, to secure and expand deportee infrastructure as well as to reduce the environmental impact. Other important objectives are to encourage the opening up of energy markets, to still the market brainwave of to a majusculeer extent environmentally friendly technologies and energy resources, and to promote energy efficiency and energy savings on the way to a low-carbon economy.Slide 9 A well-educated but cheap labour force could cater Europe with an important boost to its fighting as a complex globular economy emerges. Russia offers access to a accomplished and well-educated human resource pool, let companies recruit where they work. Russia has one o f the most highly skilled workforces in the piece, backed by an educational system with a consentient global reputation and producing professionals who take up leaders positions in areas such as natural and pplied sciences, programming, R&D, engineering, etc. (7thin the world with 75 million workers, 99. 4% literacy rate, 41 Russian Nobel laureates) The government has begun implementing a program aimed at finding tomorrows leaders and providing priority support to them. Slide 10-11-12 Why? 2. One of the LargestConsumer Markets 3. World-Renowned Human Capital Vast Natural Resources peculiar Geographic Position Technologically advanced Economy Attractive Taxation ashes Extensive Government Support unchangeable Social and Political SystemRussia has a comparatively small treat of the EUs good external FDI, at 4%,but this is actually significantly more than chinawares. Despite that, the EU is by off the beaten track(predicate) the largest investor in the Russian economy. On th e other hand, it seems that a significant part of the FI inflows, and also of the recent increase, may be Russian capital repatriated from abroad. Services halt certain between 50% and 60% of the total FI. Among the other sectors, natural resources and manufacturing attract nearly comparable amounts of FI (and close to their weights in Russias GDP).But the share of the energy sector is larger in FDI (i. e. , without Portfolio and Other Investments). The share of the energy sector in the FDI inflows in the period 1Q-3Q 2007 seems to have been nearly 2/3 of the total. EU MS seem to be among the largest investors in virtually allthe sectors of the Russian economy. In other terms, Russia performance is non as injurious as one might expect, which is non to say that there are not areas for improvement. There are, and one such one is the legal framework .European Union accounts for 4/5ofthe accumulated direct investment inRussia, and the amount ofcapital investment inabsolute terms h as freehanded significantly over the past fewer years European busi-ness community rated Russia third, dapple neither Asian nor North American investors included iteven inthe bloom dozen According tothe calculations done bythe Institute ofWorld Economy and planetary Relations, the burgeoning Russian trans-national companies, despite their global inter-ests, have nevertheless concentrated 2/5oftheir long-term foreign assets inthe EU According tothe new long-term anticipate ofthe Institute ofWorld Economy and internationalist Relations, the share oftheEU-27inthe worldsGDP (calculated bythe par baron ofthe purchasing power ofcurrencies) will godown from 21%in2005to 16%in2020. This means that Russiasmore forward-looking markets will benot its traditional European partners but mainland China and other large machinateing countries. Slide 14 Strong Russian scientific knowledge provides excellent opportunities for RD partnerships with Russian research institutes and universities.Wh ile Russia possesses round of the largest oil and gas reserves in the world, some of them have become harder to recover. This is a great opportunity to introduce innovative technologies to develop new gas and oilfields. Additionally, critical technical areas are eligible for government co-financing on a competitive basis to facilitate research and development of innovative capabilities and leading technologies in * Aerospace * Aviation * Shipbuilding * self-propelling * Machinery * Metallurgy * Construction * Chemistry and pharmaceuticals * Nuclear physics * And many more. Interesting fact Russia leads the world in the number of annual spacecraft launches.