Interview with Ms. Elena Danilova, Director of the Department for Foreign Economic Relations, Russian Ministry for Economic Development and Trade, on the eve of the Russia/EU summit was obtained by Natalia Byrkina, Novosti RIA correspondent.

- Elena Vladimirovna, what issues will be under consideration at Russia/EU summit and what documents are to be adopted?

- The key issue to be considered at the summit is approval of ‘roadmaps’ on four common fields. MEDT is responsible for the pan-European economic space. We have drafted a so-called roadmap that is submitted to the summit for consideration. We hope this document will be approved, and then we will get down working on the shaping of this space.

- What is a roadmap?

- A roadmap is an action plan of systemic work that covers different lines of bilateral cooperation with the European Union, including in industry, agriculture, aerospace exploration, transport, telecommunications and innovations as well as in customs business.

- Does the document determine the top-priority dimensions of such harmonization?

- The roadmap contains a series of aspects with respect to which harmonization of applicable rules and procedures is proposed. This concerns not only the trade treatment but also economic cooperation in broad terms. These include governmental purchases, competitive policy, investment support and administrative regulation, cooperation in power industry, aerospace industry, agriculture, car-making, textile, mining and metallurgical and chemical industries, non-tariff measures, customs regulation, pipeline and port infrastructure construction, intellectual property protection, combating counterfeited drugs and pirate audio and video disks.

The roadmap envisages convergence of laws and procedures related to foreign economic operations, for instance, standardization of industrial products, technical regulation, procedures for product compliance assessment. These matters are essential for economic operators because they touch upon their day-to-day operations. We need to start harmonization of regulation and such technical standards that will enable us to export our products with least costs.

For instance, to ensure that Russian certificates are recognized in Europe. An illustrative example is B-200 aircraft used for fire-extinguishing.

This is one of our most interesting models. To sell it on the European market it should be certified under European standards. Now we are confronted with this problem. The same concerns home appliances and industrial equipment. There are certain requirements as concerns noise and other environmental impact in Europe. And Russian products must meet these requirements in order to enter the European market. The gist of it is for our manufacturers to make products that meet European standards from the very start, rather than to bring it to the required quality level later. Not only Russia is interested in it.

This is a mutual process. Europe is also interested in receiving products purchased from us without delays.
A large section is devoted to inter-regional and near-border cooperation, financial and insurance services. Yet the financial system is a circulatory system that supplies the entire economy. Without a stable bank system, other enterprises cannot efficiently develop. Here we need to elaborate a prudential supervision system that would ensure transparency of trans-border flows and would unify criteria for banks’ financial stability so that Russian banks operate in equal conditions with their foreign counterparts.

- What will happen after adoption of the roadmap?

- For all of the above dimensions, we would create working groups that will deal with development of specific implementation plans with specific deadlines. Perhaps, in the future the parties will have to sign special documents – memos and industrial agreements.

- Within which periods of time a common economic space may be established?

- We envisaged two-three years for roadmap implementation. But, as with any business plan, the roadmap will be adjusted namely ‘on the move’. New subjects are likely to appear. Where technical coordination is required, this process may take more time.

Different ministries and departments will deal with implementation of this plan. The business community will also be engaged. Now we are upgrading to a new level of relations with the European Union. The partnership and cooperation agreement signed with EU earlier was an advanced document.

Firstly, it is based on WTO rules and standards and, secondly, contains a contractual and legal framework that enables to develop cooperation. Now we are going over to systemic work and will focus our efforts on convergence of fundamental legal standards that determine economic activity, such as ownership, contract execution, fair competition, taxation stability and transparency, inter-corporate standards, and transparency of corporate business.

- European Union is our principal trade partner. It accounts for 50% of Russian foreign trade. Is expansion and diversification of Russian export to Europe the final objective of the roadmap?

- Trade is good if it is well-balanced. So export expansion is not the end in itself. Our objective is to improve competitive standing of the Russian economy, economic well-being of individuals and businessmen and, finally, success of the country. The same objective is set by the European Union.

Export is but a tool in getting at this objective, which enables to secure a footing on other nations’ markets. We need not only export but also import, if it concerns upgrading of production facilities and purchase for this purpose of later and unique foreign equipment. As for diversification, one should understand that we will never abandon export of commodities if the entire Mendeleev’s table is available in subsoil in this country... This is the revenue portion of the budget.

- Does implementation of the roadmap also mean that the common economic space will be established and that Russia will smoothly jointly join the European Union?