Guidelines for Finland’s Policy on the Eastern Partners of the EU and on Central Asia

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Guidelines for Finland’s Policy on the Eastern Partners of the EU and on Central Asia

Finland attaches importance to the fact that the countries neighbouring the European Union should be open and democratic states with stable economic and social development. Finland seeks to contribute to the rapprochement of the countries of Eastern Europe and Central Asia to the European Union. It is our wish to foster the convergence of common values and goals with the countries in the region.



Relations with the countries in the region are guided by Finland’s national interests and the common policy of the European Union. Finland takes each state’s individual characteristics into account in its countryspecific policy guidelines.



The stability and development of the area, as well as the functionality of its governance, have an effect on Finland as a member state of the European Union. Finland’s cooperation with the countries in the region continues to expand in various sectors. The states in the region consider Finland a trustworthy, competent and successful country, whose experiences they can learn from. The positive public image of Finland supports bilateral cooperation and work in international fora.



Finland will continue to actively promote the following goals: 1. To enhance bilateral political and economic relations between Finland and the countries in the region. To strengthen Finland’s presence, visibility and influence in the area by means of development cooperation.

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2. To foster the stable development of these countries, including in the fields of democracy, human rights, the rule of law, and the civil society, as well as in the development of good governance and market economy conditions. 3. To prevent conflicts and to promote conflict resolution through peaceful means by way of international cooperation and by encouraging regional cooperation. 4. To actively participate in the strengthening of the cooperation of the European Union with the states in the region. Geography

The eleven states of the region are habitually divided into Eastern European and Central Asian countries. The total population of the region is approximately 137 million. Eastern European countries include Belarus, Moldova and Ukraine, as well as Armenia, Azerbaijan and Georgia, which are also referred to as the South Caucasian countries. The Central Asian countries are Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.



Of the states in the region, Belarus, Moldova and Ukraine are immediate neighbours of the EU, while five of the countries share a land border and three a sea border with Russia. Central Asia borders China in the east, and the region borders Turkey, Iran and Afghanistan in the south.



Country-specific differences are considerable in the area. Several states are important energy producers or transit countries, offering potential for trade and investments. The countries’ total economic potential is significant, although they vary greatly in wealth and prosperity.

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At this stage of their development, the states are in the process of reinforcing their societal structures and identities. This process, which began with the dissolution of the Soviet Union, is still on-going and in need of support.

Neighbours

The region is at the crossroads of European, Near Eastern and Asian cultural and religious influences. Many of the countries are still in the process of defining their geopolitical orientation. The sense of regional interdependency between states is generally rather weak.



In their foreign policy, the countries strive to find a nationally beneficial balance between the attentions of outside players. Historically, important players in the region have been Russia/the Soviet Union, Turkey, Iran and China. The EU and United States are new, external actors in the area.



Apart from Georgia, all the countries in the region are members of the Commonwealth of Independent States (CIS). The Collective Security Treaty Organisation (CSTO) also operates within the CIS framework, and is tasked with developing security cooperation between its member states. The organisation’s membership is comprised of Armenia, Belarus, Kazakhstan Russia and Tajikistan. Uzbekistan suspended its membership in the organisation in June 2012. Russia, China and the Central Asian states, with the exception of Turkmenistan, also belong to the Shanghai Cooperation Organisation, SCO.



The Customs Union between Russia, Belarus and Kazakhstan was the first step in deepening the economic integration of Eurasia. The final internal border controls within the Customs Union were eliminated in the summer of 2011. From the beginning of 2012, the Customs Union was replaced by a common economic space, which allows for the free movement of services, labour and capital in the region. The Eurasian Economic Commission, based on the EU model, was established

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to administer the common market. President Putin of Russia, among others, has envisioned extending the integration to the political level as soon as by 2015. The goal of this integration is a Eurasian union with a common currency and monetary and economic policy. The integration is open to all countries in the region.

The South Caucasian and Central Asian countries have strategic importance for Turkey and Iran. China’s focus is mainly on its Central Asian neighbours. China’s engagement in the region is, above all, focused on securing its energy supply and strengthening its international position. The situation in Afghanistan has increased the United States and NATO presence in Central Asia.



For the EU, the significance of its Eastern Neighbourhood and Central Asia has increased to a notable degree. In recent years, the EU has paid increasing attention to the region and duly reinforced its foreign policy. This is demonstrated by the European Union’s Neighbourhood Policy, the Eastern Partnership policy included therein, and the EU’s Central Asia Strategy.

Problems and challenges

The Eastern European and the Central Asian countries face a number of internal challenges that reverberate beyond the region. These include problems relating to societal structures, such as corruption and deficiencies in the development of democracy, human rights, the rule of law and the rights of women and children. The educational and health systems of several countries are in a state of crisis. In most countries in the region, industrial production and the structure of industry have not developed sufficiently to be able to answer the challenges of the global economy, and the infrastructure is outdated.



The shortage of water and inadequate water management fuel conflicts both within and between the countries. Some of these problems are connected with the lack of proper border demarcation between the countries.

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Their geographical location has made many countries in the region into transit countries for trafficking in drugs, human beings and arms. The continued instability in Afghanistan provides a fertile breeding ground for the surge in drug trafficking via Central Asia. The Central Asian states form a significant transit route for drug trafficking to Russia. Drug trafficking goes hand in hand with organised crime, terrorism, corruption and Islamic radicalism. As a consequence of drug trafficking, HIV/Aids is spreading in the CIS region. Afghanistan produces approximately 90 per cent of the world’s opium.



The ending of the NATO operation in Afghanistan by the end of 2014 may increase uncertainty in the country’s neighbouring areas. The unpredictability of the situation in Afghanistan, Pakistan and the wider neighbourhood raises concerns over growing Islamic extremism. Radical political Islamism has gained a foothold in the region’s Islamic countries in recent years and its influence continues to grow in the region. The improvement of border security between Afghanistan and Tajikistan is of paramount importance.



Further tension in the immediate EU neighbourhood has been caused by protracted conflicts. Four such conflicts which can be traced back to the break-up of the Soviet Union are the Transdnistrian conflict in Moldova, the South Ossetian and Abkhazian conflicts in Georgia, and the Nagorno-Karabakh conflict between Armenia and Azerbaijan.



Basing on the principles expressed in relevant UN/UN Security Council resolutions and OSCE Final Documents and Declarations, in regard of conflict resolution, Finland, in line with the EU policy, supports the principles of sovereignty and territorial integrity, and does not recognise the independence of the so-called separatist regions.

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The conflict in South Ossetia escalated into a war between Russia and Georgia in August 2008, during Finland’s term as Chairman-in-Office of the OSCE. A Finnish ambassador will continue as a UN Special Representative in the Georgian conflict and the Geneva talks regarding it.



Finland is a member of the Minsk Group, the OSCEled process for the resolution of the Nagorno-Karabakh conflict. In the case of the Transdnistrian conflict, Finland supports the negotiation process under the auspices of the OSCE.

Financial crisis The global financial crisis has had inevitable repercussions on the economies in the region. Work-related emigration has increased due to the poor financial situation and growing unemployment in countries in the region. In particular, Russia is the target of these pressures. Remittances from migrants working abroad constitute a significant buffer for several of the countries’ economies.

Gas and oil revenue dependency is a structural problem shared by the energy producing countries. The high world market prices of oil, gas and minerals boosted export revenues in Azerbaijan, Kazakhstan, Uzbekistan and Turkmenistan before the onset of the global economic crisis. These countries are expected to have good prospects for a renewed economic upturn thanks to their rich natural resources. The prosperity from natural resource exports is unevenly distributed among their citizens, however. In stark contrast to the energy producers, there are also states which lack natural resources and whose inhabitants subsist, for the most part, on less than two dollars a day.

WTO

In order to facilitate economic cooperation, Finland encourages EU’s Eastern Partners and Central Asian states to seek membership in the WTO. Armenia, Geor-

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gia, Kyrgyzstan, Moldova and Ukraine are already members. Finland also encourages the countries to engage in mutual economic and regional cooperation.

The obligations relating to Russia’s accession to the WTO also apply to Kazakhstan and Belarus, since they are in a customs union with Russia. The accession negotiations of Kazakhstan were restarted in the spring of 2012, and they are currently in the final stages.

European Union The European Union provides the central framework and channel of influence for Finland’s foreign policy. The Union’s role in supporting the stability and development of the region must be strengthened. The EU’s relations with its Eastern Partners and the Central Asian states should encourage them to continue political, economic and social reforms.

Eastern Partnership



The challenge facing the EU is one of developing a neighbourhood policy when the Union is not ready to commit to further expansion. European neighbourhood policy has been updated as a result of the Arab Spring that began in Tunisia in 2010. The objective is to focus EU support based on the progress made by individual countries. Countries that have committed to reforms are encouraged according to the more-for-more principle, receiving increased political and financial support from the EU. The EU has separate neighbourhood policies for its southern and eastern neighbours. The European Union’s southern neighbours belong to the Union for the Mediterranean. EU’s Eastern Partnership comprises six countries, which are Armenia, Azerbaijan, Georgia, Moldova, Ukraine and Belarus. The Eastern Partnership was launched at the Prague Summit of the EU and its Eastern European Partners in May 2009. The purpose of Eastern Partnership is to

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support social reform in the Eastern Partners and thereby their rapprochement to the EU. The conformity of national legislation with EU legislation is paramount.

Finland stresses that Eastern Partnership should - encourage Partners to continue on the path of reform, seek to establish common values and strengthen the rule of law, democracy and civil society. - encourage Partners to continue contractual negotiations with the EU and implement the reforms required by the agreements. - maintain the free trade areas as a central part of association agreements. (In the agreement with Azerbaijan, once the country has gained membership in the WTO). - facilitate the free movement of people. In particular, we support the improvement of the freedom of movement and studying opportunities of researchers and students of Partner States in the area of the EU. - strive for visa freedom as a realistic objective once the preconditions are met. - seek to concretise and strengthen the more for more principle so that the EU will support countries that promote reforms and democracy more than it previously has.



Association Agreements play a key role in the convergence of the EU with its Eastern Partners. The text of Ukraine’s Association Agreement has been finalised, and negotiations are underway with Armenia, Azerbaijan, Georgia and Moldova. With the exception of Azerbaijan, the agreements contain sections on free trade areas. The commencement of negotiations with Belarus depends on the country’s human rights situation. While the Association Agreements are being negotiated, the relations of the EU with its Eastern Partners are based on existing Partnership and Cooperation Agreements (PCA).

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Visa facilitation agreements are in force between the EU and Ukraine, Moldova and Georgia, and such agreements are being negotiated with Armenia and Azerbaijan. Ukraine, Moldova and Georgia, as well as Kyrgyzstan, have unilaterally granted visa freedom to citizens of the EU.



Finland supports the facilitation of the free movement of people between the countries in the region and the EU in accordance with principles agreed on in the EU. The implementation of visa facilitation and readmission agreements can lead to a visa dialogue, and eventually to possible visa freedom. Promoting freedom of movement supports the development of democracy in the countries in the region.



European neighbourhood policy is financed by the ENPI (European Neighbourhood and Partnership Instrument), which will become the ENI (European Neighbourhood Instrument) in 2014. It is Finland’s objective to ensure an adequate portion of funding for the EU’s eastern neighbours.

The Central Asia Strategy of the EU

The EU’s relations with Central Asia have been enhanced in recent years. The EU has opened full-fledged delegations in Kazakhstan Kyrgyzstan, Tajikistan and Uzbekistan and is planning on establishing one in Turkmenistan.



The European Union adopted a Strategy for a New Partnership with the Central Asian states in 2007, the first comprehensive opening towards Central Asia by the EU. The Strategy forms the political foundation for the EU’s activities in the region and is based on the shared interests between the EU and the Central Asian states.



The Central Asia Strategy is mainly realised through the implementation of sectoral projects coordinated by the Commission. Some member states have taken a leading

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role in coordinating certain sectors of activity. Based on the Strategy, the EU conducts an annual human rights dialogue with all five Central Asian countries.

In the spring of 2012, the EU evaluated the results achieved by the Central Asia Strategy. The evaluation came to the conclusion that the Strategy’s focus remains topical. In the future, the activities of the EU will in particular be targeted at questions of security and the promotion of regional cooperation. The situation in Afghanistan remains a shared challenge. Other areas of focus include questions of energy, the environment and water, human rights, the development of the rule of law and the promotion of education.



The contractual relations between the EU and the Central Asian states are based on Partnership and Cooperation Agreements (PCA), with the exception of Turkmenistan, whose PCA is still awaiting ratification by the European Parliament. The EU is currently negotiating the updating of Kazakhstan’s PCA to an enhanced PCA.

Common Foreign and Security Policy

Due to the protracted conflicts and the war in Georgia in 2008, crisis management plays an important role in the activities of the EU in the region. The European Union Monitoring Mission (EUMM) in Georgia deploys a total staff of 370 civilians, around 20 of whom are Finnish experts. The European Union Border Assistance Mission (EUBAM), supporting border control between Moldova and Ukraine, launched in 2006 and Finnish experts have participated in the operation continuously since its inception. Finland takes an active part in current joint EU operations underway in the region, and is prepared to respond in the event of any new requirements.



Finland takes part in arms control-related projects, which support training related to arms export control, the destruction of surplus weapons and the countries’

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preparedness to prevent the smuggling of nuclear and radio-active materials. As far as conventional weapons are concerned, particular attention is paid to the creation of international arms trade rules and the prevention of the proliferation of illicit small arms and light weapons. Democracy and Shortcomings pertaining to human rights and democratic development are common to the region, alhuman rights though there are marked differences between the individual countries. The development of democracy in the region has been uneven. Civil society is weak and subject to constant pressures, while the work of the independent media, civic organisations and political opposition is often restricted due to limitations on the freedom of speech and freedom of association. Despite international contractual obligations and reporting duties, the equality of citizens before the law and the realisation of human rights varies both between and inside countries. The rights of women, children, the disabled and minorities are often lacking. The death penalty is still practised in some of the countries.

In the promotion of democracy and human rights, Finland works mainly through the European Union, The Organization for Security and Cooperation in Europe (OSCE) and Council of Europe, in which the Eastern European and South Caucasian countries, with the exception of Belarus, are members. Kyrgyzstan and Kazakhstan are members of the Venice Commission under the Council of Europe.



The EU should pay sustained attention to human rights issues in the region and promote the ratification of the Protocol to the Convention for the Protection of Human Rights regarding the abolition of the death penalty and the Protocol concerning the Reform of the European Court of Human rights by all the countries which are members of the Council of Europe. The part-

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nership between the Union and the countries in the region should be based on an open exchange of views, with human rights dialogue being an integral part of deepening the relations.

The strengthening of the rule of law, civil society and human rights is the objective of Finland’s activities in the region. Finland’s actions are guided by the premises and development policy guidelines of the Government Report to Parliament on Finland’s Human Rights Policy. Finland encourages the countries in the region to ratify and implement the Acts of the Council of Europe pertaining to human rights, democracy and the rule of law.



Finland monitors the human rights situation in the region and contributes to the human rights dialogue concerning the EU’s Eastern Partners and Central Asia within the EU context, within international organisations, as well as bilaterally. Development cooperation projects funded by Finland, in the shape of Wider Europe Initiatives (WEI) and ’FLC projects’, implemented with funds for local cooperation, constitute a major component of this work in all the eleven countries.

International organisations

International organisations play a significant role in the management of the processes of social change, of which they have decades of experience. The most important organisations are the United Nations and its specialised institutions, the OSCE and international development finance institutions, with which Finland has joint projects in the region within the framework of the Wider Europe Initiative. The purpose of the activities is to encourage greater commitment on the part of the respective countries to the international system and the honouring of pledges made to international organisations Effective multilateral cooperation is a central pillar of Finland’s foreign and security policy. Finland considers it important to develop synergies and coordination among international actors in order to avoid the needless duplication of tasks. 14



The United Nations is a key organisation through which Finland carries out its multilateral cooperation. Finland is firmly committed to the UN system, supports its goals, and emphasises the interdependence of security, development and human rights that are a hallmark of its work. The Universal Periodic Review carried out under the auspices of the UN Human Rights Council has become a vital part of human rights dialogue.



The OSCE is the most far-reaching regional security organisation in the world, with 56 participating states. The organisation’s area of operations extends from North America to Central Asia. The organisation plays a key role in conflict prevention and early warning, as well as in conflict resolution and post-conflict rehabilitation. The organisation is well known and its work is appreciated in the region.



The focus of the OSCE’s activities is on its field offices, situated in the Balkans, Eastern Europe and Central Asia. After the stabilisation of the situation in the Balkans, the focus of the OSCE’s activities has shifted east.

Bilateral relations



Finland aims to intensify political dialogue with Eastern European and Central Asian countries. The increasingly active bilateral relations of the last decade have laid a good foundation for this. The network of contacts created during Finland’s term as Chairmanin-Office of the OSCE in 2008 has been maintained and strengthened. There are regular bilateral consultations at the level of senior officials. The number of Finnish diplomatic representations in the region is modest. Finland has embassies in Ukraine and Kazakhstan. The Ambassador of Finland to Kazakhstan is also accredited to Kyrgyzstan. In Belarus, Finland has a liaison officer operating under the

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Finnish Embassy in Lithuania. The Finnish Embassy in Bucharest, Romania, manages relations with Moldova. Two roving ambassadors, based in Helsinki, are responsible for the rest of the countries in the region. One is accredited to Armenia, Azerbaijan and Georgia, and the other to Tajikistan, Turkmenistan and Uzbekistan. Development of trade

Finland pays particular attention to the development of economic relations, especially with Ukraine, Kazakhstan and Belarus, since Finnish companies are primarily interested in these countries. The objective is to improve the opportunities of Finnish companies to operate in the region. The exports and internationalisation of Finnish companies are supported in cooperation with Finpro. Finnish diplomatic missions “open doors”, establish contacts and disseminate information about both the potential and pitfalls of doing business in the region.



Export and trade promotion visits to the region are conducted at the ministerial and senior official level. Finnish government authorities will intervene to mitigate problems encountered by businesses and remove trade barriers whenever possible. Finnpartnership is a business partnership programme of the Ministry for Foreign Affairs that provides advice to Finnish companies and funds the planning, development and implementation phases of new business initiatives abroad. Regular meetings of the Joint Commissions for Trade and Economic Cooperation are convened with Ukraine and Kazakhstan, or between their cochairs. Economic and trade consultations are also held with the other countries in the region.

Development cooperation

Finland is strengthening the scope and comprehensiveness of its development cooperation in Eastern Europe and Central Asia within the framework of the Wider Europe Initiative launched in 2009. Finland’s bilateral

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Framework Programme for Development Policy, focused on Eastern Europe and Central Asia was launched in stages in 2009–2011. The initiative is based on the Government Programme of 2007, which emphasises crisis prevention, support for peace processes and environmental cooperation, as well as support for the private sector and trade. The Programme in its current form will conclude at the end of 2013.

The goal of the Programme is to support security, stability and prosperity in the partner countries in the region. There are five themes, carried out while taking into account the circumstances and needs of each partner country. The themes are security, trade and development, information society development, cooperation relating to energy and the environment, and social sustainability.



The projects are implemented in cooperation with UN organisations, the OSCE or international development finance institutions. In addition, the instrument for interinstitutional development cooperation (ICI) and funds for local cooperation (FLC) will be used in the projects.



An evaluation of the Wider Europe Initiative in 2012 will facilitate planning of future cooperation programming. The next stage of the WEI will take into account the Development Policy Programme issued by the Finnish Government in 2012, as well as the results of the evaluation of the current Programme. It will be launched in 2014.



Finland’s bilateral activities are in line with the European Union’s Eastern Partnership and Central Asia Strategy.

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Policy guidelines Finland pursues the goals specified in these policy guidelines as a member state of the European Union, bilaterally and via international organisations.

Bilateral relations • Finland intensifies political dialogue with the countries in the region. The exchange of visits will be increased. An important goal is the conduct of regular consultations between the foreign ministries of Finland and the respective countries. • Finland emphasises the importance of the rule of law, civil society, and democracy development as a part of all bilateral activities, including project activities. • It is Finland’s goal to develop trade and economic relations with all countries in the region. Finnish companies are particularly interested in Kazakhstan, Ukraine and Belarus. • Finland will conduct trade and export promotion visits to the countries in the region and actively offer promotion services to Finnish businesses. • Finland will continue development cooperation in the area during the next Wider Europe Initiative development cooperation programme, covering the years 2014–2017. • Finland will continue to reinforce its positive image in the region’s countries through development, the exchange of visits and other activities. • Finland will continue the campaign promoting its candidacy for a non-permanent seat on the UN Security Council in the region. • Finland will strive to appoint honorary consuls in the region’s countries when possible.

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• Finland will examine the level of its representation in the countries where Finland has no diplomatic mission (primarily the South Caucasus and Moldova).

Finland and the European Union • Finland advocates the strengthening of EU policy in the region and takes an active part in the European Union’s Eastern Partnership and the implementation of the Central Asia Strategy. For Finland, the encouragement of further political, economic and social reforms, and the reinforcement of the Union’s instruments in support of these goals are of central importance. • Finland considers the advancement of the EU’s contractual relations with all the countries in the region important. Finland supports negotiations for Association Agreements and the related free trade areas. • Finland considers visa freedom for Eastern Partners an objective, provided that the countries fulfil the required prerequisites. We support the visa road maps of Moldova and Ukraine, and the initiation of a corresponding programme with Georgia. We are in favour of concluding visa facilitation agreements with Armenia and Azerbaijan. • Finland takes an active part in Eastern Partnership programmes and submits project proposals. • Finland supports the WTO membership aspirations of the countries in the region. • Finland promotes conducting an ongoing human rights dialogue as an important aspect of cooperation.

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International organisations • Finland encourages the countries in the region to embark on political, economic and social reforms by supporting the work of international organizations toward these goals. • Finland supports the strengthening of the role and visibility of the international organisations that operate in the region, with a stronger linkage between security, development and human rights as a universal goal. The promotion of a greater commitment to the international system and the honouring of pledges made to international organisations by the respective countries is vital. • Finland strengthens its development cooperation through the Wider Europe Initiative in cooperation with international organisations and financial institutions. • Finland aims to increase the number of Finnish experts serving in international organisations in the region. • Finland supports project activities that enhance the implementation of international conventions on human rights and works towards the ratification of the Protocol to the European Convention on Human Rights, Concerning the Abolition of the Death Penalty in All Circumstances and the Protocol on the Reform of the European Court of Human Rights by all the countries that are member states of the Council of Europe. Helsinki, 1 August 2012

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