Stereotypes influences on economic relations between the European Union countries and Russian Federation

Actuality of research

The EU is the main source of technology, know-how and investment for Russia. As regards foreign direct investment, companies from EU Member States are the major foreign investors in Russia. The EU has a vital interest in promoting prosperity in its largest neighbor. The European and Russian markets are fundamentally complementary: both the EU and Russia each have strengths that could be shared to mutual benefit. The EU is a knowledge-based economy that, simultaneously, needs to lift its long-term growth prospects; while Russiais a high-growth emerging economy necessitating a knowledge base able to exploit its

historic strengths in advanced science and technology. Trade and investment flows between the EU and Russia are already significant but they tend to be concentrated in sectors where barriers are low and regulatory systems are compatible. For their part EU companies wanting to invest in Russia have often been held back by legislative and bureaucratic obstacles, as well as by high tariffs, for example on imported components. Such barriers reduce our shared competitiveness. Negative influence of stereotypes on economic relations can form obstacle for economic collaboration. Apparently both Russia and the European Union will benefit from the increase of trade operations, investments and travel. Private capital cannot be locked by national borders, and money tends to go to the regions that provide more favorable conditions, including protection of capital investments, and where profits are reputed to be the highest. Russia's primary attention, therefore, ought to be attached to eliminating the obstacles obstructing the development of contacts and cooperation at any level — from reducing the duration of cargoes' and vehicles' customs clearing procedures to cutting the «red tape» in the relations between Russia and the European Union. So the EU and Russia are interested in definition and destroying of stereotypes for successful business relations.

Problem of research: Stereotypes influences on economic relations between the European Union countries and Russian Federation.

Objects of research: economic relations

Subject of research: The influence of stereotypes on economic relations.

The aim of research is to identify influence of stereotypes on economic relations between the European Union countries and Russian Federation.

Steps to be followed:

1.To identify stereotypes that influence economic relations between EU and Russia.

2.To find out consequences of influence of stereotypes on economic relations between EU and Russia.

3.To find out a possible solutions for the problem of negative influence of stereotypes.

4.To investigate results of the first attempts solving problem.

5.To make general conclusion.

Research methods: Theoretical analysis and synthesis information.

Main body.

Step 1.Stereotypes that influence on economic relations between the European Union countries and Russia.

In spite of powerful impulses encouraging the development of strategic partnership relations between Russia and the European Union their future relations are largely predetermined by the success Russia will achieve in its domestic system transformation, on the one hand, and by

the final results of the EU radical transformation, on the other. The uncertainty surrounding the process of future democratic and socio-economic transformations in Russia is viewed as the main hindrance in the relations between Russia and the European Union. Since the 1990s

Europe has experienced serious apprehensions about the prospects of the democratic reform in Russia. All those apprehensions have caused many other problems in the relations between Russia and the European Union: absence of any strategic goals in the EU-Russia relations which may create a risk of the growing gap between the unifying Europe and Russia.

The uncertainty with regard to the prospects of Russian democracy seems to have been induced by the following three factors. First, by the stereotypes juxtaposing Russian and European values as incompatible. Second, by the Soviet syndrome. Third, by the mistakes made by the Russian leaders in the past decade (the use of force for resolving Russia's internal political crisis in October 1993; the warfare in Chechnya; implementation of controlled democracy) which impelled Europe to question Russia's adherence to democratic principles. The EU countries, as well as Western countries as a whole, however, were not impartial observers and they often showed neglectful and cynical attitude toward Russia's vested interests. On the one hand, they flouted the premise that Russian democracy could only succeed under the conditions of favorable external environment instilled by them; on the other, they showed distrust to the future democratic transformations in Russia giving preference to stability rather than democracy in Russian society. The absence of any long-term concept of the relations between Russia and the European Union and the strategic objectives determining their current policies is viewed as the main obstacle preventing Russia and the European Union from working out the principles of effective policy with regard to one another. The last reasons are internal political development in Russia and fears of its Western partners concerning the direction in which