E.U. tests the waters in Russia

By Batuk Gathani

BRUSSELS, MAY 30. The European perception of the one-day Euro- Russian summit in Moscow held on Monday is that at best, it was a major public relations exercise by both the sides.

The meeting between the Russian President, Mr. Vladimir Putin, and the E.U. President, Mr. Romano Prodi, was the European Commission's first official encounter with the new Kremlin establishment. The scene of Mr. Prodi and senior officials of the Commission exhibiting bonhomie with leaders like Mr. Mikhail Gorbachev, former President of the Soviet Union, and the former Russian Premier, Mr. Primakov, said a great deal about E.U.'s warm relations with Moscow. This bond is cemented with greater quest on both sides to develop more intimate trade and investment ties.

The European officials are more than pleased with the outcome of the Moscow summit where both the sides pushed for better economic cooperation. Although the summit concluded without any official communique or firm agreements, the European officials stated that the prime aim of the E.U. was to establish personal rapport Mr. Putin. Russia has also embarked on a major public relations exercise with the E.U. and the U.S., as the summit comes ahead of an informal visit by the U.S. President, Mr. Bill Clinton, to Moscow this weekend.

The message from Moscow is that Russia is essentially a European power, despite its Asian heritage and geographical presence in Central Asia. This was aptly summed up by Mr. Putin who said: ``Russia was, is, and will remain a European country because of its location, its culture and its quest for economic integration.''

The Europeans generally, and Germans particularly, are fascinated by Russia's huge natural and human resources with the promise of a vast trade and investment potential. Among the 15 E.U. countries, Germany has the largest trade volume and investment programme in Russia, to the extent that the French, British and Italian industrialists are envious of the ``German proximity'' to Russia. Germans have argued that they have been investing heavily in Russia ever since that country opened up a decade and half ago.

E.U. officials have found Mr. Putin to be consistent and reliable and as one of them put it: ``There is an atmosphere of solidarity compared to the chaos of the Yeltsin era.'' All this obviously portends well for trade and investment prospects.

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Section  : International
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