French President Nicolas Sarkozy speaks at a press conference of the EU-Russian summit in Nice, southern France, Nov. 14, 2008. [Xinhua]

Both sides now say they hope to see the negotiations to resume in the near future. The new agreement will succeed the existing Partnership and Cooperation Agreement.

The EU and Russia agreed that both Russia and the United States should refrain from deploying missiles or missile defense systems in Europe at least before mid-2009 when a pan-European security framework is discussed between Russia, the United States and the EU.

French President Nicolas Sarkozy said he has proposed a summit of the Organization for Security and Cooperation in Europe (EU) in June or July of 2009 to discuss a pan-European security framework.

"Between now and then, please no more talk about the deployment of missiles or anti-missile protection systems," Sarkozy told reporters at the EU-Russia summit.

Russian President Dmitri Medvedev agreed. "I agree that before a global agreement is signed on ensuring European security, we should all refrain from unilateral steps that affect security (in Europe)," Medvedev said.

Sarkozy said he told Medvedev how concerned the EU was about the Russian president's recent statement that Moscow would deploy short- and medium-range missile in Russia's Baltic enclave of Kaliningrad in response to a U.S. plan to deploy a missile defense system in Poland and the Czech Republic. Kaliningrad borders Poland and Lithuania.

Medvedev is promoting his proposals on a new security architecture for Europe. The OSCE summit will be an opportunity for Euroatlantic discussions on it as the OSCE groups EU countries, Russia, as well as the United States and Canada.

Sarkozy said a NATO summit in April 2009 will be an opportunity for the EU to exchange views with the United States on this issue.

Russian President Dmitry Medvedev (L), French President Nicolas Sarkozy (C) and European Commission President Jose Manuel Barroso attend a press conference of the EU-Russian summit in Nice, southern France, Nov. 14, 2008. The EU and Russia held the summit in Nice on Nov. 14. [Zhang Yuwei/Xinhua]

On trade issues, Russia agreed to postpone export duties on certain forest products, said European Commission President Jose Manuel Barroso. He did not give details.

The EU and Russia face many trade disputes with restrictions on wood exports the most pressing one. High tariffs on Russian wood exports mean that wood-related production in some EU member states no longer makes economic sense, said an EU trade official prior to the summit. Foreseen increase in tariffs on Jan. 1, 2009 would have made the situation worse, said the official, who asked not to be named.

Other trade issues include Russia's demand for payments for Siberian overflight rights, its barriers on some agricultural products and delays in customs reforms. The EU had accused Russia of lacking the political will to address trade disputes.

The leaders rushed to Washington for a Group of 20 summit on the current global financial crisis. Both the EU and Russia said they hold similar views on this issue and are ready to push for reform of the international financial system.

(Xinhua News Agency November 15, 2008)