One of the main problems in relations between Russia and the European Union (EU) is the absence of strategic goals. Russia, having played a critical role in ending the Cold War, has neither found its place in the strategy of EU expansion nor in that of NATO. In 2007, the active Partnership and Cooperation Agreement (PCA) between Russia and the EU - which both sides agree has become outdated and is no longer able to meet today's challenges - is due to expire. The form that any new legal, contractual basis for relations between Russia and the EU may take will have implications not only for stability within Europe, but also for Russia's democratic future.

Russia is now in the final negotiation phase regarding its accession to the World Trade Organization (WTO). Discussions have been held over the past fourteen years and have contributed indisputably to the transformation of the Russian economy and the modernization of its legislature. If there are still unanswered questions at the start of 2007, the unbalanced nature of the negotiations runs the risk of Russia having to make further concessions to its partners in order to speed up the agreement's conclusion. In the longer term, the main challenge faced by Russian authorities is to ensure that documents that are already in force are transposed.

In 1996, the Russian Federation joined the Council of Europe both in spite of and owing to its democratic failings. Accession was, in fact, seen as a step toward democratic conversion. Ten years an, as the Council is presided by Russia for the first time, an initial appraisal can be made using the following questions as guideline: to what extend has the Council of Europe influenced Russia, and to what extend has Russia - taking into account observed regressions - modified the current nature of the Council?

Energy security and gas supply have become issues of central concern for the European Union as reserves in the North Sea are dwindling. Russia is offering to replace the North Sea supplies in the future, but the EU should be aware that Moscow will not be able to fully meet Europe's demand in the future. Russia will remain a significant supplier, but the EU needs to look for other possible sources of gas supply in Northern Africa, in the Caspian Sea region, in the Barents Sea, and in the Persian Gulf. Diversification is the best strategy for enhancing European energy security.