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