An important step towards establishing a more open and integrated market between the EU and Russia, known as the Common Economic Space (CES), was taken today. European Commission Vice President, Günter Verheugen, and the Russian Minister of Industry and Energy, Viktor Khristenko, signed documents which establish two permanent frameworks for dialogue between the European Commission and the Russian authorities.

The aim is to improve the administrative, regulatory and investment environment for businesses operating in Russia by closer co-operation, exchange of information and by working towards the harmonisation of technical legislation and standards relating to industrial products. Working groups will cover a number of industrial sectors, including textiles, automobiles, chemicals and pharmaceuticals.

European Commission vice president Günter Verheugen, responsible for enterprise and industry policy, said: I am pleased that we have been able to sign these terms of reference today. I am confident that the two dialogues will not just be talking shops, but will be practical mechanisms for eliminating barriers to trade and investment, thereby enhancing the competitiveness of both the EU and Russian economies.”

The two dialogues, already announced by Mr Verheugen in October, are key elements of the roadmap to create a Common Economic Space.

The regulatory dialogue will promote the harmonisation of technical regulations on industrial products. Across many industry sectors, the differences between EU and Russian standards and technical regulations are a trade barrier. The aim is not just to talk but to work towards regulatory convergence.

The dialogue on industrial and enterprise policy aims to improve the administrative, regulatory and investment environment for companies operating in Russia. Support and advice from both EU and Russian industry in the projects will be vital to their success.

The first meetings under the dialogues are planned for early 2006.

The Roadmap on the Common Economic Space was adopted at the EU-Russia Summit in Moscow on 10 May 2005. It aims to establish an open and integrated market between the EU and Russia by increasing opportunities for economic operators, promoting trade and investment and strengthening co-operation in several fields.

Mr Viktor Khristenko, Minister of Industry and Energy of the Russian Federation, was visiting the European Commission in Brussels as part of a delegation from the Russian government, led by Prime Minister Fradkov.