Russian companies should not ignore the basic questions and specific demands of the foreign press, for it plays a key role in the formation of a reputation of Russian business in other countries. One of the possible solution for the problem of negative influence of stereotypes is strengthening international credibility or establishment economic contacts.The formation of four common spaces can solve the this problem. St. Petersburg initiative, which provides for creating four common spaces - a common economic space; a common space of freedom, security and justice; a space of cooperation in the field of external security; and a space of research and education, including cultural aspects. Support for democratic transformations and gradual extension of Europe's stability and prosperity zone were laid in the foundation of the EU enlargement process. This inevitable process will involve a major reform aimed at factual abolition of national borders. The EU domestic market concomitantly envisages more pronounced external borders, unparticular, the Schengen Treaty. This process, however, is bound to have a bearing on Russia which lies outside the perimeter of the EU enlargement even though the EU has taken several steps in that direction (the program «Northern Dimension» is the only European regional program in which Russia is a full-fledged participant).
The European Union emphasizes that the legal norms regulating the process of integration of the Central and Eastern European countries into the EU common market should not obstruct the ongoing reorganization of economic relations between Russia and the Central and Eastern
European countries nor inflict any damage on Russian economy. Russia's general anxiety due to the enlargement of the European Union is predicated by the fact that this process can further augment the gap between the EU and the Central and Eastern European countries, on the one hand, and between Russia and the European Union, on the other.
The idea of the four common spaces, and mainly the common economic space, is extremely important in this respect. But the common economic space cannot be created without the development of a free trade zone, at least in a distant future, as a fundamental prerequisite for dynamic economic interaction. Thus Russia will be able to enhance their economic status on the world stage show consistency and development of the Russian economy.
Moreover Russia accession to the WTO will help solve many problems.
Cooperation in this area aims at further integration of Russia into the world economy and at preparation for Russia’s accession to the World Trade Organization (WTO). The EU recognizes the fundamental role that WTO membership plays in integrating Russia into the world economy and in anchoring and consolidating Russia’s economic reforms.
Advantages stemming from Russia’s accession to the WTO will be reciprocal. It will provide more stability and predictability, better terms of access, increased legal security for
EU investments in Russia. Russian exporters will have guaranteed channels of exports to all EU markets and to other WTO members.
The other view shared by various people both in the EU and in Russia purports that in view of widening and deepening of the European integration and with consideration of the new threats and challenges to European security the relations between Russia and the EU should be brought
to a higher new level of cooperation which the 1997 Partnership and Cooperation Agreement cannot provide. Such new level of cooperation could be attained through an Agreement on Establishing a Special Association between the Russian Federation and the European Union. This goal fully meets long-term interests of both Europe and Russia. On the one hand, such an Agreement on Association perse does not imply Russia's aspiration to join the EU as its member. On the other hand, such an agreement would provide solid legal basis for the relations evolving between the EU and Russia. It would contribute to the convergence of Russian and EU political, economic and legal systems; enhance sustainable development of their economies; promote further development of democracy in Russia, and ensure closer cooperation of its parties in all directions including security measures. The «special association» implies that the EU agreement with Russia draws a distinct line between this and other agreements on association with consideration of Russia's importance and status, its role in the termination of the «cold war,» as well as its input in the anti terrorist coalition. Undoubtedly, an Agreement on Association perse won't resolve all problems in the EU-Russia relations but together with some other measures and programs such an agreement would bridge the existing gap between the unifying Europe and Russia, which is likely to lead to the emergence of a new dividing line on the European continent. The success of future partnership between Russia and the European Union will depend on the impact which the processes of widening and deepening of European integration, first and foremost, its institutional transformations in the enlarged European Union will have on its viability and its efficiency as Europe's primary international institution.
Step 4.Results of first attempts solving problem.
Finally a major difficulty in creating a corporate image in the West is a serious lack of people representing Russian companies in the public sphere. The frequency of Russian companies and their directors being mentioned in prominent foreign press testifies to the serious scarcity of “individuals” in the public sphere. More recently the formation of an objective economic premise to improve the image of Russian companies has begun. This is tied to the increasing number of foreign investors in Russia and the growing presence of Russian business and assets in Europe.During this process businesses not only need to deepen mutual trust and establish stable connections but Russian companies must also more actively and openly work with foreign mass media. There needs to be newsworthy public figures, capable of eliciting an informal interest from Western audiences.
The reputation of Russian businessmen is improving and this is connected with the growing number of companies known to Western audiences, the “acclimatization” of foreign audiences to the stream of news about Russian companies and the favorable indices of Russian economics. Investors are ready to invest money in the development of Russia. The Russian stock market last year grew 80% and, in the opinion of investors, overcame risks. This fact is, for many, more important than the image of business and the country in which it is unfolding. But Russia's business structure and businessmen remain, all the same, on the edge of ambiguity.
The Partnership and Co-operation Agreement (PCA),economic relations between the EU and Russia. It was signed in 1994 and entered into force on 1st December 1997. Under the terms of the PCA, Russia receives Most- Favored -Nation (MFN) status, whereby no quantitative limitations are applied except on exports of certain steel products (which represent only 4% of bilateral trade). On 27 April, Russia agreed to extend the PCA to the ten new EU Member States from 1 May 2004. The basis of the PCA is the shared principles and objectives of the two partners: “the promotion of international peace and security, support for democratic norms and
for political and economic freedoms.” It covers an extensive range of policy areas from trade and financial cooperation through science and technology and education to the cooperation on the prevention of illegal activities. While the PCA created a framework for political dialogue, the most important aspect for Russia was that it created a way to gain access to the EU market.
The Partnership and Co-operation Agreement established a complex institutional structure for regular consultations.
In the economic realm the significance of the PCA was that it declared Russia to be a “transit economy” which was a step beyond its earlier status of state trading economy. In this realm the long term aim is to eventually establish a free trade area between Russia and the EU.13 Pointing in this direction, it did away with most of the quantitative restrictions for Russian goods, with the exception of steel, textiles and nuclear material.
This is also part of the rationale behind the Common Economic Space, which should contribute to anchor Russia in the European and to fully benefit from the recent EU enlargement. At the EU-Russia Summit of May 2001, the EU and Russia launched discussions on the establishment of a Common Economic Space. The main objective of this initiative, which covers essentially all trade and economic issues, is the elimination of trade barriers between the EU and Russia mostly through regulatory convergence. Indeed, regulatory convergence would allow economic agents to operate subject to common rules in a number of fields throughout the enlarged EU and Russia which represent a market of around 600 Million consumers.
The EU-Russia Summit on 21 May 2004 has discussed the next steps to develop the four Spaces launched at the EU-Russia Summit in St. Petersburg in May 2003, and notably the need to agree on an action plan on the Common Economic Space in the coming months.