ABSTRACT
External economic relations are at the top of Russia's economic policy agenda. The Russo-European summit in May 2002 was as important landmark in this process, as both parties used this venue to state their intention to establish a Common European Economic Space (CEES). However, the confirmation of Russia's European identity is only a starting point for this movement, rather than its final destination. The concept of the CEES has so far been formulated in a very general manner, and a lot of work—both intellectual and political—is needed to give it real content. Prospects for creating a free trade zone between the EU and Russia were first addressed in the Partnership and Cooperation Agreement (PCA) that was signed in Corfu in June 1994 and came into effect in December 1997. Formulating and implementing a catching-up development strategy under the conditions of the post-industrial world should be a fundamental goal of Russia's economic policy, and should be reflected in relations with the EU.
