The relationship between the European Union and Russia is key to the future of our continent. During the Swedish EU Presidency we wish to develop a positive interdependence, which supports the political objective of furthering this relationship by improving conditions for trade and investment.

We strongly believe there is a close connection between trade and investment, between stability and security, and growth and prosperity. Few things are more effective in bringing people together and securing stability than economic integration. The potential for trade in our region is a potential for growth, employment and prosperity. As Trade Ministers representing the EU Presidency and Russia our aim is to see this potential fully utilised.

We are convinced that the conditions for expanding trade and economic relations are more favourable today than ever before. We have a solid and good basis to start from - the EU today accounts for 40 percent of Russia's total exports and Russia is a major supplier of energy, especially natural gas. Important systemic changes have taken place in Russia over the past 10 years. We see growth and expansion again in the Russian economy - a window of opportunity that can be used to follow through on reforms to ensure sustained growth. These efforts need to be supported in every way.

Russia now has a government with a clear commitment to a program of structural reform. There is a growing recognition in Russia that Russia's full integration into the world economy is in its own interest. In the European Union this is very much welcomed. An economically strong and vibrant Russia is of general European interest.

Clearly, the forthcoming enlargement of the European Union is a significant factor in EU-Russia relations. The EU stands ready to pursue a dialogue with Russia on the consequences of the enlargement. Enlargement makes it all the more important that Russia adapts to EU rules and standards. The EU stands ready to support Russian measures in this respect.

Kaliningrad represents a particular challenge in view of the enlargement. A unique situation will develop which calls for pragmatic solutions to new circumstances in areas such as trade and border passages.

Russia's accession to the World Trade Organization will constitute an important step towards Russia's integration into the world economy. Membership in the WTO will ensure that Russia is accorded equal treatment with all other WTO-members. Russia cannot stay aside the WTO.

The European Union strongly supports Russia's efforts to meet the requirements of WTO membership. Sweden, Russia and the European Commission will jointly organise a high-level political Round Table on "Russia, the International Economy and the World Trade Organization" on March 30 in Moscow to support this process.

The Round Table will give an opportunity to analyse the benefits of being a member of the WTO, the related commitments as well as the process leading up to Russia's accession to the WTO. Invited and confirmed participants include Russian Government Ministers, Members of the Duma, Heads of Government Agencies and Heads of Business Associations, Banks and Companies.

WTO accession is crucial to stimulate a competitive environment. But it is not only a matter of classic market access. It is also about being part of a system of open trade, governed by stable, predictable and transparent rules. This is exactly what is needed to stimulate and diversify trade.

Membership in the WTO entails the introduction and strengthening of market economy principles which proved so successful in the post-war period. Russia's accession to the WTO involves incorporating stable and predictable "rules of the game" into Russian legislation. The introduction of such rules will not only make Russia more attractive for foreign investors, but also create a more predictable and clear economic and legislative environment for foreign and domestic business.

Partnership and co-operation are key words to describe how we hope that economic relations between Russia and the European Union will develop. To make our partnership a real success we need to increase our knowledge about, and our understanding of each other's motives and intentions. For this, we need to deepen our dialogue.

We need to meet with each other more often, through exchanges at all levels.

We need to study each other's languages, history and culture. We need to weave a fine web of contacts, covering capitals, regions and local communities. We have excellent examples in North-West Europe of the benefits of such close co-opera-tion between neighbours, both around the Baltic Sea and in the Barents region.

We recognise that the realization of a strong, long-term, economic partnership between the European Union and Russia very much depends on policies and developments in Russia over the next decade. But we are confident that through joint efforts we have every possibility to make this vision come true.

Mr. Pagrotsky is Sweden's minister for trade, and Mr. Gref is minister of economic development and trade of the Russian Federation.