This book explains how the internal dynamics of transition have influenced the relationship between Russia and the EU. Taking an holistic approach, the authors present a balanced analysis exploring EU, Russian and US perspectives on the Russian-EU relationship and examine a range of political, economic, business and security issues including the Northern dimension of Russian-EU relations, the Chechen situation, Russian domestic economic policy, trade, the business environment, energy and EU technical assistance. They also address such questions as: Will bilateral relations be achieved with a Western or Russian model? Who is the main driver of Russian-EU relations? Is Russia converging with the EU in terms of business, culture, legal environment and systems? Does the Russian-EU link provide a new model for EU external relations?