EU opts to freeze relations with Russia

EU foreign ministers yesterday agreed to freeze relations with Russia over Chechnya, suspending €90 million in its TACIS aid programme, redirecting some of it to humanitarian relief.

Ministers also agreed not to grant any new trade preferences to Russia. They are currently worth €120 million a year, with €60 million more in the pipeline now suspended. Unspent foodaid cash worth €30 million will also not be forthcoming, and the EU has postponed the signing of a scientific agreement.

The moves, largely signalled at the Helsinki summit, will be seen by the Russians as little more than a slap on the wrist. They reflect a strategic dilemma for the EU which depends on Russian goodwill in the Balkans and is vulnerable to trade retaliation. Much of the continuing €40 million aid is directed at building democratic institutions. There are also concerns that economically isolating Russia is counterproductive.

Acknowledging the difficulties, diplomats spoke of the need for a smooth transition for the new post-Yeltsin regime of the acting President, Mr Vladimir Putin.

Speaking in the debate, the Minister for Foreign Affairs, Mr Andrews, called for the maintenance of diplomatic pressure on Russia but warned that it should be "proportional".

Earlier, in the public debate on the Portuguese Presidency's programme, ministers proposed the rapid implementation of agreed measures to strengthen the EU's military capability.

Portugal has called a meeting of EU defence ministers for late next month to advance work on the year-old project to create a mobile, rapid-reaction force for military intervention.

Its Foreign Minister, Mr Jaime Gama, said yesterday he expected provisional security and military committees to be set up in March. However, he conceded it would take much longer to build the permanent interface with NATO which both organisations agreed was imperative.

The EU's foreign and security policy chief, Mr Javier Solana, said he hoped to announce some elements of a rapid-reaction force by the time of the February meeting, which may coincide with the first EU-NATO command post exercise, Crisex 2000.