Energy and Kosovo tension sets tone for EU-Russia summit

BRUSSELS - Several contentious issues will dominate an EU–Russia meeting in the Portuguese city of Mafra on Friday (26 October), including energy and Kosovo's future status, while an overdue new partnership agreement between the two sides looks likely to remain unresolved.

One of the main topics discussed during the meeting will be energy. The EU imports 25 percent of its oil and gas from Russia - a fact that has become a source of tension between the two sides as Moscow has in the past signalled it will use its energy power for political gains.

For its part, Brussels has rankled Moscow by including a protectionist clause – thought to be specifically aimed at Russian monopoly Gazprom – in its recently-published liberalisation plans for the energy sector.

The plan, unveiled last month, contains a clause that obliges foreign firms to separate their production and transmission activities – so-called unbundling – before they can obtain a significant stake in European energy companies.

Earlier this week, Russian ambassador Vladimir Chizhov said this was "hardly compatible with the principles of an open market."

Friday's meeting will be the first face-to-face meeting between European Commission president Jose Manuel Barroso and Russian president Vladimir Putin since the EU executive presented its proposal.

An "early warning system" aiming to avoid future energy supply crises will also be discussed.

The thorny Kosovo issue

The summit's international agenda will also be charged. Both sides have differing views on several questions, including the necessity to impose sanctions on Iran over its atomic programme and the future status of Kosovo.

With a 10 December deadline fast approaching, the Kosovo issue will be high on the agenda.

Russia is a loyal supporter of Serbia and is firmly opposed to a unilaterally proclaimed Kosovar independence which it says would violate Serbia's territorial integrity. It is also against the December deadline.

This date "is not a deadline", but simply "a benchmark", Mr Chizhov reiterated on Tuesday, with Russia keen to play up the fact that Europe itself remains very divided on what it would do in the face of unilaterally-declared Kosovo independence.

Meanwhile, the meeting comes as the EU itself recognises that it has to adopt a more realistic approach to Russia, particularly since a wave of pro-Russia leaders – including the former leaders of Germany, France and Italy – have left the political stage.

The Financial Times on Thursday reported on leaked EU documents that stated that its giant neighbour is "likely to be marked by an assertive foreign policy, tougher internal policies and heightened rhetoric".

There is expected to be little movement on agreeing a partnership agreement between the two sides, blocked by Poland since late 2005 because of a separate bilateral dispute between Warsaw and Moscow over meat.

The current agreement - the Partnership and Cooperation Agreement (PCA) - runs out at the end of this year. While the new Polish government is expected to usher in less frosty relations with Russia, it is probably too soon after the weekend elections for this to have a tangible political effect.

Ambassador Chizhov said he was "realistic" concerning the outcome of the meeting and expects neither "a historical breakthrough", nor a new partnership agreement to be launched.

Human rights

Human rights in Russia continue to be a source of concern to the EU. In the run-up to the summit, EU external relations commissioner Benita Ferrero-Waldner spoke about "the limitations on press freedom, attacks on journalists, pressure on NGOs and the situation in the North Caucasus."

Consequently, the upcoming elections in Russia are seen as "a critical period" and "an important test" for the country.

The EU is hoping that both the parliamentarian – in December - and the presidential elections in March 2008, will go smoothly. It has encouraged the country to invite observers from the Organisation for Security and Cooperation in Europe (OSCE) to make sure the elections are free and democratic.

Other issues set to be discussed in Mafra will include the lifting of fees for European companies flying over Siberia and Russia's bid to join the World Trade Organisation.

This will be the 20th EU-Russia summit and it will mark the 10th anniversary of the entry into force of the current PCA. Once it expires in December, it will be automatically renewed until the parties agree on a new document.

The summit will also be the last one during Mr Putin's term as president of the Russian federation.