Select Committee on Foreign Affairs Minutes of Evidence


APPENDIX 3

Memorandum submitted by Embassy of the Republic of Lithuania

  Lithuania's integration into the European and Trans-Atlantic institutions, as well as the maintenance of friendly relations with neighbouring countries, Russia among them, are the foreign policy priorities of our state.

  We base our relations with Russia on the universally recognized norms and principles of international law and the Lithuanian-Russian Treaty on the Basis for Relations between the States, signed on 29 July 1991 and entered into force on 4 May 1992. The development of bilateral co-operation is ensured by implementation of the provisions and goals of this document, including the sovereign right of each state to independently choose means of ensuring its security and defence in ways they find acceptable, as well as through the collective security arrangements. The parties of the Treaty confirmed the continuity of Lithuanian statehood, declared by the parliament of the Republic of Lithuania on 11 March 1990, and pledged to refrain from the use of force and the treat of the use of force in their mutual relations, to respect sovereignty, territorial integrity and inviolability of their borders in accordance with the principles of the OSCE.

  In relations with the Russian Federation we emphasize the importance of adherence to the principles enshrined in the instruments of the OSCE, including commitments to observe in political practice the principle that every state has the inherent right to be free to choose or change its security arrangements, including treaties of alliance as they evolve.

  Lithuania has no border problems with Russia, nor does it have problem in relation to its Russian ethnic population. Lithuania has signed a border treaty with Russia on 24 October 1997. It granted the right to obtain Lithuanian citizenship for all the inhabitants that resided in Lithuania up until the declaration of the restoration of independence. Lithuanian citizens of Russian origin, representing approximately 8 per cent of the population in Lithuania, enjoy full social, cultural and linguistic autonomy guaranteed by the Lithuanian laws and according to the international standards.

  Agreement on trade and economic relations, which established Most Favoured Nation status for both states, as well as agreements on avoidance of double taxation and on promotion and protection of investment, which were signed during the recent visit of Lithuanian Prime Minister to Moscow on 29 June 1999, create necessary foundation for economic co-operation.

  Turnover of Lithuania's foreign trade with Russia for January-June 1999 amounted 563 million USD. Lithuania's export to Russia amounted 100 million USD or 6.7 per cent of Lithuania's total export (4th place). Import from Russia amounted 463 million USD or 19.6 per cent of Lithuania's total import (1st place). Chief exports from Lithuania to the Russian Federation in this period looked as it follows: 17.2 per cent—machinery, mechanical appliances and electrical equipment, 12.7 per cent—prepared foodstuffs, 12.6 per cent—live animals, 12.1 per cent—vehicles, aircraft, vessels and associated transport equipment. The main articles of import from Russia to Lithuania in January-June 1999: 57.5 per cent—mineral products (crude oil, natural gas, etc.), 21.3 per cent—base metals and articles of base metals, 1.9 per cent—plastics, rubber and articles thereof, 1.4 per cent—machinery, mechanical appliances and electrical equipment.

  Confronted with the fall in demand and depreciation of the Russian currency, Lithuania's export to the Russian Federation from mid-1998 to mid-1999 decreased significantly and was reoriented to the European Union market.

  According to the 1 April 1999 statistics the foreign direct investment in Lithuania by the Russian Federation amounted to 22 million USD or 1.23 per cent of total FDI in Lithuania.

  Lithuania's relations with Kaliningrad region of the Russian Federation hold a distinct place in the bilateral relationship as well as in Lithuania's overall policy of encouraging regional co-operation. The border between Lithuania and Kaliningrad region is Lithuania's only common border with Russia. Lithuania is linked with Kaliningrad through geographic proximity, mutual economic interests, a long-standing Lithuanian cultural heritage in the region and numerous human contacts.

  Agreement between Lithuania and Russia on the co-operation in economic, social and cultural development of the Kaliningrad region entered into force in June 1992. A new agreement on the co-operation between the regions of Lithuania and Kaliningrad region was signed on 29 June 1999.

  In 1993 the Consulate of the Republic of Lithuania was established in Kaliningrad. From 1996 regular meetings of the working group for co-operation between the regions of Lithuania and Kaliningrad region take place in the framework of the Lithuanian-Russian intergovernmental trade commission.

  Reiterating Lithuania's interest in continuing active political dialogue with Russia and developing mutually beneficial practical co-operation in the field of economy, social, cultural, educational, environmental and justice affairs, Lithuania presented to the Russian party concrete suggestions as to further development of Lithuanian-Russian relations, including:

    —  development of interparliamentary relations;

    —  promoting contacts between non-governmental organisations, support for arrangement of "round tables", seminars and conferences on Lithuanian-Russian relations, regional, European, and global issues.

    —  more intensive co-operation between the regions of Lithuania and Kaliningrad region of the Russian Federation, including:

the cross-border co-operation and developing regional relations through the activities of Euroregions "Baltica", "Nemunas" and "Saule"

preparation of co-ordinated proposals for PHARE and TACIS cross-border co-operation programmes;

    —  implementation of concrete projects on environmental protection, such as:

inclusion of the Kuronian Spit in the UNESCO World Heritage list;

cleaning and deepening of the riverbed in the delta of state frontier river Nemunas, lowering the level of pollution of effluent waters, and organising a system to monitor the condition of surface waters and exchange of information;

co-operation in addressing the natural disasters and industrial accidents;

co-operation in the "The Baltic Sea Agenda 21" programme, directing efforts to develop ecologically balanced region around the Baltic Sea in the fields of energy, industry, agriculture, wood processing, transport, fishery and tourism;

    —  co-ordination of actions aimed at combating organised crime and improving border control.

  During Lithuania's chairmanship of the Council of Baltic Sea States (CBSS), where the United Kingdom enjoys from April 1999 the status of observer, Lithuania devoted significant attention to the development of co-operation with Russia's Northwest and Kaliningrad regions, in particular the latter. The priority action list included the following areas of attention:

    —  regional economic cooperation, especially in the fields of investment, and growth of small and medium-sized enterprises, as well as establishing of business information center;

    —  transport and energy infrastructure development focusing on sustainable energy supply, integration of energy markets and networking in the Baltic region, namely:

joint efforts in implementing projects of the middle section of the trans-European corridor IX B, D;

building additional natural gas pipeline to Kaliningrad region through the Lithuanian territory;

implementation of the shuttle-train project for transportation of commodities by the Mukran (Germany)-Klaipeda (Lithuania)-Moscow (Russia) route, accomplishment of Baltic Energy Ring project;

    —  co-operation in the sphere of education, including:

Eurofaculty activities in Kaliningrad region;

student exchange programme between Vilnius and Kaliningrad universities;

public administration teaching programme for Kaliningrad region;

    —  regional cooperation in the area of home and justice affairs and civic security, especially emphasising efforts aimed at:

co-operation between the border patrol institutions;

improving infrustructure of the border-crossing posts;

creating a network of agreements on readmission between the countries in the region;

combating illegal migration, organised crime, drug trafficking and smuggling.

  Welcoming the recent decision by the European Union to adopt the Northern Dimension Initiative, which aims to increase co-operation between the enlarging EU and Russia, Lithuania invited all the members of the CBSS to give a special effort to the development potential for practical action and encouraged them to further the Northern Dimension Initiative of the European Union, especially in the areas, where EU and CBSS activities are complimentary: investment and trade, transport and energy, environmental protection, education, health care, fighting organised crime and border control, cross-border co-operation. In this respect, Lithuania prepared list of the projects, based on above-mentioned examples, which could become joint Lithuanian-Russian proposals for the Northern Dimension Action Plan and contribute to the closer cooperation between the European Union and the Russian Federation defined in the EU Common Strategy on Russia.

Embassy of the Republic of Lithuania

September 1999


 
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