Tuesday

30th May 2023

Putin proposes Russia-EU union

Ahead of his two-day visit to Germany, Russian Prime Minister Vladimir Putin has projected a vision of a 'harmonious economic community stretching from Lisbon to Vladivostok' in reaction to the economic crisis. Chancellor Angela Merkel, however, said she will "pour some cold water" on the idea.

Writing in German daily Sueddeutsche Zeitung on Thursday (25 November), Mr Putin argued that more integration between Russia and the EU and even a "common contintental market" would allow them to overcome the effects of the crisis and prevent a new one from emerging.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

  • Angela Merkel is not enthusiastic about Mr Putin's proposal (Photo: kremlin.ru)

"We should be frank about it: The global economic crisis has revealed both Russia and the EU to be economically very vulnerable," Mr Putin wrote.

Russia is still too dependent on its oil and gas exports, he argued, while the EU has lost its competitive edge in the world through its de-industrialisation policy.

A "harmonious economic community stretching from Lisbon to Vladivostok" would imply strategic alliances in key industries, such as shipbuilding, car manufacturing, space exploration and the pharmaceutical industry.

"In my view, we need to address the question as to how we can trigger a new wave of industrialisation across the European continent," he wrote.

In the field of oil and gas, Russia's main exports to the EU, Mr Putin argued that the co-operation needs to be de-politicised and have European and Russian firms working together "from exploration and exploitation of energy resources all the way to the delivery to consumers."

"Politicisation" of Russia's energy exports has however so far been the trademark of Mr Putin's leadership, first as president and now as premier of his country. The former KGB officer famously wrote his PhD on how a state should make best use of its natural resources, although the paper was later on proved to have partly plagiarised US academics. He has been constantly criticised for sanctioning pro-democratic changes in countries such as Georgia and Ukraine with pricing disputes and even cut offs, while awarding more favourable regimes with lucrative gas deals.

In one such incident, back in January 2009, EU member states Bulgaria and Slovakia were left in the cold after Gazprom turned the tap off to Ukraine, then led by the "Orange Revolution" leader Viktor Yushchenko. A more Russia-friendly regime change in Kiev has since sealed a 20-year gas deal at favourable prices in return for an extension of Russia's naval presence in a Ukrainian port.

Speaking at a press conference in Berlin on Thursday, German Chancellor Angela Merkel said she had to "pour some cold water" on the ideas floated by Mr Putin.

"Of course we support the idea of a free trade zone between the EU and Russia but I have to pour a bit of cold water on it," she said.

"The steps that Russia has taken recently do not point in that direction," Ms Merkel added, in reference to plans championed by Mr Putin on withdrawing Russia's bid to join the World Trade Organisation and establish a customs union with Kazakhstan and Belarus instead.

The customs union came into force in July, but later on, Russian President Dmitry Medvedev said it is not really working and has re-energised the WTO bid.

On Wednesday in Brussels, for instance, Russian negotiators agreed to phase out its tarriffs on raw materials such as timber, thus allowing the EU to lift its objections to the WTO bid. The move followed a similar endorsement from Washington, in September this year.

PFAS 'forever chemicals' cost society €16 trillion a year

Researchers found that global societal costs of the so-called forever chemicals or PFAS amount to €16 trillion per year. Meanwhile, the bigger producers of these chemicals are also among the ones spending the most to lobby EU policies.

EU: national energy price-spike measures should end this year

"If energy prices increase again and support cannot be fully discontinued, targeted policies to support vulnerable households and companies — rather than wide and less effective support policies — will remain crucial," the commission said in its assessment.

Double rejection for EU flagship nature restoration plan

MEPs from the agriculture and fisheries committees have voted to reject the nature restoration proposal — a key proposal that aims to halt biodiversity loss and reverse the degradation of ecosystems in the bloc.

Putting a price on nature? Not a good idea, experts say

In a moment that could have been an act of polite rebellion, physicist and ecologist Vandana Shiva walked off stage during a speech about the need to 'put a price on nature' in the European Parliament this week.

EU: Wage-earners will 'bear brunt' of inflation in 2023

The European Commission raised its economic growth forecast but notes that inflation will continue to eat into household income while the contribution of corporate profits to price pressure is expected to remain high in 2023.

EU: national energy price-spike measures should end this year

"If energy prices increase again and support cannot be fully discontinued, targeted policies to support vulnerable households and companies — rather than wide and less effective support policies — will remain crucial," the commission said in its assessment.

Opinion

EU export credits insure decades of fossil-fuel in Mozambique

European governments are phasing out fossil fuels at home, but continuing their financial support for fossil mega-projects abroad. This is despite the EU agreeing last year to decarbonise export credits — insurance on risky non-EU projects provided with public money.

Latest News

  1. Germany unsure if Orbán fit to be 'EU president'
  2. EU Parliament chief given report on MEP abuse 30 weeks before sanction
  3. EU clashes over protection of workers exposed to asbestos
  4. EU to blacklist nine Russians over jailing of dissident
  5. Russia-Ukraine relations the Year After the war
  6. Why creating a new legal class of 'climate refugees' is a bad idea
  7. Equatorial Guinea: a 'tough nut' for the EU
  8. New EU ethics body and Moldova conference This WEEK

Stakeholders' Highlights

  1. International Sustainable Finance CentreJoin CEE Sustainable Finance Summit, 15 – 19 May 2023, high-level event for finance & business
  2. ICLEISeven actionable measures to make food procurement in Europe more sustainable
  3. World BankWorld Bank Report Highlights Role of Human Development for a Successful Green Transition in Europe
  4. Nordic Council of MinistersNordic summit to step up the fight against food loss and waste
  5. Nordic Council of MinistersThink-tank: Strengthen co-operation around tech giants’ influence in the Nordics
  6. EFBWWEFBWW calls for the EC to stop exploitation in subcontracting chains

Stakeholders' Highlights

  1. InformaConnecting Expert Industry-Leaders, Top Suppliers, and Inquiring Buyers all in one space - visit Battery Show Europe.
  2. EFBWWEFBWW and FIEC do not agree to any exemptions to mandatory prior notifications in construction
  3. Nordic Council of MinistersNordic and Baltic ways to prevent gender-based violence
  4. Nordic Council of MinistersCSW67: Economic gender equality now! Nordic ways to close the pension gap
  5. Nordic Council of MinistersCSW67: Pushing back the push-back - Nordic solutions to online gender-based violence
  6. Nordic Council of MinistersCSW67: The Nordics are ready to push for gender equality

Join EUobserver

Support quality EU news

Join us