Abstract
Russia seeks closer economic ties with EU, and EU is enlarged with 10 new members. Against this background, what future Russia-EU economic relationship is realistic? The paper analyses the enlargement's effect on trade between Russia, “old” and “new” Europe's, changes in tariffs and non-tariff barriers, and institutional issues. The reasons why EU and Russia cannot co-operate closer are political (very difficult), economic (probably less difficult), and legal (very difficult on harmonization and dynamics). Political because of different, e.g. geopolitical objectives (mentioned at the end), economic (as reflected in the NTB-section, e.g.) and legal (the impossibility of an CEES).