Eu – Russia Relations

sea-coast 3-4 The European Union and Russia have a strong deal transactionhip. Bilateral trade and investing fundss continue to grow rapidly. Since 1997 the Partnership and Cooperation Agreement has been the material of the EU-Russia relations, regulating the political and economicrelations between the EU and Russia. cardinal of the main objectives of this agreement is the promotion of trade and investment as good as the instruction of harmonious economic relations between the EU and Russia. EU imports from Russia are, however, to a very large extent not subject field to any restrictions.The recent WTO accession of Russia bequeath prevent Russia from adopting unilateral responsibility hikes as has been the case in the past. The new EU-Russia Agreement currently chthonian negotiation should provide a comprehensive framework for bilateral relations with stable, predictable and balanced rules for bilateral trade and investment relations. It will focalization on improving the regulatory environment by building upon the WTO rules and alter bilateral trade relations. The EU was a strong supporter of Russias WTO membership since the start of the process to the actual accession on 22 wondrous 2012.Russias WTO membership will gives a major(ip) boost to further development of the economic relationship between the EU and Russia. Slide 5 Russia is the triplet trading first mate of the EU and the EU the first trading partner of Russia. Trade between the two economies showed steep growth rates until mid-2008 when the apparent movement was interrupted by the economic crisis and unilateral measures adopted by Russia that stirred EU-Russia trade. Since 2010 mutual trade has resumed its growth reaching record levels in 2011. EU exports to Russia are dominate by cars, medicines, car parts, teleph adepts and parts and tractors.EU imports from Russia are dominated by raw materials, in particular, oil (crude and refined) and ball up. For these products, as we ll as for other important raw materials, Russia has committed to freeze or conquer its export duties. The EU is the near important investor in the Russia. It is estimated that up to 75% of Foreign Direct Investment stocks in Russia come from EU piece States. Slide 6 Directions 1) Energy sector 2) compassionate resources 3) FDI 4) Technologies Slide 7-8 Russia and the EU still disagree primarily over the issues surrounding the talent sector.Russia is the most important supplier to the EU not only in gas and oil, but also of coal and uranium. Its oil and gas exports account for more or less two thirds of overall export earnings and revenues from this sector, and this contributes to over forty percent of the federal budget income. On the other hand, the EU is a major buyer of energy products what makes the EU over-dependent on Russian oil and gas, which undermines the EUs political confidence. This anxiety is a result of Russias efforts to pulmonary tuberculosis this insecurity not only for economic objectives, but also for political purposes what give a rise to concern about future supply.The energy partnership within theEU-Russia Energy Dialogue aims at improving the investment opportunities in the energy sector to ensure continued energy production, to vouch and expand transportation infrastructure as well as to stiffen the environmental impact. Other important objectives are to encourage the opening up of energy markets, to facilitate the market penetration of more environmentally golden 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 gaudy labour force could provide Europe with an important boost to its battle as a complex worldwide economy emerges. Russia offers access to a skilled and well-educated human resource pool, letting companies recruit where they work. Russia has one of the most highly skilled workforces in the world, backed by an ed ucational system with a solid global reputation and producing professionals who take up leading 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 Unique Geographic Position proficiently Advanced Economy Attractive Taxation System Extensive organization Support Stable Social and Political SystemRussia has a relatively gloomy package of the EUs nub external FDI, at 4%,but this is actually portentously more than Chinas. Despite that, the EU is by far the largest investor in the Russian economy. On the other hand, it seems that a significant part of the FI inflows, and also of the recent increase, may be Russian jac ket crown repatriated from abroad. Services have received between 50% and 60% of the total FI. Among the other sectors, natural resources and manufacturing attract roughly 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 most 2/3 of the total. EU MS seem to be among the largest investors in virtually allthe sectors of the Russian economy. In other wrong, Russia performance is not as bad as one might expect, which is not to say that on that point are not areas for improvement. There are, and one such one is the levelheaded framework .European Union accounts for 4/5ofthe accumulated direct investment inRussia, and the amount ofcapital investment inabsolute terms has grown significantly over the past few years European busi-ness community rated Russia third, while neit her Asian nor North American investors include iteven inthe top dozen According tothe calculations done bythe impart ofWorld Economy and International Relations, the burgeoning Russian trans-national companies, despite their global inter-ests, have nevertheless concentrated 2/5oftheir long-term conflicting assets inthe EU According tothe new long-term forecast ofthe Institute ofWorld Economy and International Relations, the share oftheEU-27inthe worldsGDP (calculated bythe par index ofthe purchasing power ofcurrencies) will godown from 21%in2005to 16%in2020. This nitty-gritty that Russiasmore forward-looking markets will benot its traditional European partners but China and other large developing countries. Slide 14 Strong Russian scientific knowledge provides excellent opportunities for RD partnerships with Russian research institutes and universities.While Russia possesses some of the largest oil and gas reserves in the world, some of them have become harder to recover. This is a great hazard to introduce innovative technologies to develop new gas and oilfields. Additionally, critical technological areas are eligible for government co-financing on a competitive founding to facilitate research and development of innovative capabilities and leading technologies in * Aerospace * gentle wind * Shipbuilding * Automotive * Machinery * Metallurgy * Construction * Chemistry and pharmaceuticals * Nuclear physics * And galore(postnominal) more. Interesting fact Russia leads the world in the number of annual spacecraft launches.