Week in Review: European Union

Russia and the European Union failed to agree on visa-free travel for the Kaliningrad enclave when the EU expands eastward, an issue President Vladimir Putin said was a basic post-Soviet right. Putin was blunt in his opening address, criticizing the EU for a stand which he said risked leaving Kaliningrad isolated if its Baltic neighbours Poland and Lithuania join the bloc as expected in 2004 - enclosing it within EU territory. Russia has suggested visa-free transit aboard sealed trains, raising the notion of an extra-territorial corridor which has unacceptable historical parallels for both Lithuania and Poland.

Polish dairy industry representatives said they could benefit from European Union (EU) membership but that first they need the government's help. The dairies fear they will be unable to take advantage of EU modernization aid because they lack the required cofinancing and want the government to extend bank loan guarantees to them, as banks are unwilling to do so due to the poor condition of the sector.