The level of trust between the European Union and Russia has reached its lowest level since the collapse of communism, said EU Trade Commissioner Peter Mandelson in a speech prepared to be delivered on Friday. Mandelson, who has been a prominent figure in Russia’s bid to join the World Trade Organisation (WTO) and in a recent dispute over Moscow’s ban on Polish meat imports, suggested both sides to take a long-term view. The EU trade commissioner is expected to urge for creating new rules to govern the global energy trade during a conference to be held in Italy this week. Mandelson emphasized that EU-Russia relations could go very wrong as uncertainties over energy issues builds on both sides.
EU countries have long condemned Moscow for cutting off supplies of oil and gas during disputes with neighboring customers like Ukraine. They are anxious that Russia is using its extensive energy resources as a political weapon. In addition to it, EU leaders have also shown concerns about the mysterious murders of dissidents and journalists unsympathetic of the Kremlin and the allegedly recent high-handed behavior of police during anti-government demonstrations in Russia.
Mandelson while highlighting the fact that Russia and the EU suspected each other of double standards, including on the core issue of gas and oil supplies, said, ‘Effective engagement is surely as much about understanding how you will be perceived as choosing what to say. Unless we recognise our different perceptions of what has happened since the end of the Soviet Union we risk getting the EU-Russia relationship badly wrong’.
He further insisted that Russia should also be engaged into the international trading system to broaden its economy away from a reliance on lucrative oil and gas revenues. He also explained Russia’s WTO membership as something that would strengthen Russia’s economy, boost investment and trade and help depoliticize and de-escalate trade disputes with Europe.
Mandelson was also very critical over Europe’s policy towards Russia particularly in the past decade when incoherency in policy rose at alarming level. As a matter of fact, EU is increasingly suspicious of Moscow’s role as energy supplier for which EU is highly dependent on it. Mandelson while addressing this concern said that said the EU needed guarantees that Russia will not cut off oil and gas supplies, and both sides would benefit from rules for energy investments on both sides of the borders.
On the other hand, even Russia is also in persistent need of diversifying its economy to evade being trapped in an economy where central part is being played by the energy. Though following world’s political equation and economic need Russia is definitely used petro-power to strengthen its position.
