EU overweegt sancties tegen Rusland als er geen akkoord komt over uitbreiding (en)

EUOBSERVER / BRUSSELS - The EU is poised to threaten Russia with sanctions if it does not extend a bilateral agreement to cover the EU's new members.

Foreign Ministers meeting early next week will warn Moscow that it faces "countermeasures" if it does not extend the agreement to cover the EU's new members, many of which were formerly under Soviet control, say diplomatic sources.

Russia has so far refused to extend the Partnership and Co-operation Agreement (PCA), which forms the legal basis of bilateral relations between Moscow and Brussels, demanding compensation for trade-related losses it says it will suffer.

Russia last month submitted a list of 14 areas where it will lose out, because of EU expansion, claiming 150 million euro a year will be lost.

Most of the EU's partners such as Japan and the US are eligible for compensation under World Trade Organisation rules. However Russia is not a WTO member.

Brussels continues to stress that the extension of the PCA is a formality and is no longer willing to wait for Russia to agree to sign.

Hardball

"If Russia does not ratify the PCA then we will be forced to use countermeasures", one diplomat told the EUobserver.

"No formal list [of countermeasures] has yet been drawn up", said another source adding that the EU still hopes that Russia will agree to extend the agreement, before the two sides come to blows.

But with some EU members uneasy at the prospect of threatening the EU's new neighbour, officials will again meet to discuss the matter tomorrow (18 February).

However one source said that no change was expected, with many member states mindful of Russia exploiting any differences that may exist between member states.

However, the EU is likely to be reluctant to carry out the threat in practice.

The EU has also been battling with Russia over ratification of the Kyoto protocol while Moscow continues to press for WTO membership.

Foreign Ministers from the 15 member states and 10 countries which will become members on 1 May are set to meet in Brussels next Monday for their monthly meeting.