The EU and Russia agreed at the St. Petersburg Summit in May 2003 to create in the long-term a ‘Common Economic Space’. A road map agreed in 2005 sets out objectives and areas for cooperation for the short and medium-term. Fourteen dialogues between the EU and Russia covering most economic sectors have so far been established. They include a number of regulatory dialogues which aim at promoting the gradual approximation of legislation. Three meetings of the EU-Russia Permanent Partnership Councils at ministerial level have been held on environment, transport and energy in 2006. This framework is complemented by sectoral agreements between both sides.

Energy

Energy is a very important element in the EU-Russia relationship. This relationship can be best characterised as mutual interdependence of supply, demand, investment and know-how.

Russia is the world’s largest producer and exporter of natural gas and, together with Saudi Arabia, also the largest producer and exporter of oil. Russia possesses more than 20% of the world’s known gas reserves and 5% of proven oil reserves. The share of the energy and metals sector in the Russian economy is around 20% while it employs only 2% of the total labour force.

There is a strong mutual interest in a closer energy partnership between the EU and Russia – one that offers security and predictability for both sides. The energy that the EU buys from Russia contributes very significantly to Russia's current economic growth and the improved living conditions of its population. In turn, the stable flow of reasonably priced energy remains an important motor for Europe's economic growth. Ultimately, our citizens and businesses alike need to be provided with safe, reasonably priced energy.

Read more about EU-Russia energy relations at: http://ec.europa.eu/energy/russia/overview/index_en.htm.