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LuxembourgOctober 21, 2002Excellencies,Ladies and Gentlemen,I would like to thank the Danish Presidency for this kind invitation to take part in the Conference on Northern Dimension and also would like to welcome the document before us prepared by the Presidency and the European Commission. Let me make few remarks on the draft document itself. It is good to see the notion that the new Action Plan of the Northern Dimension should be prepared by the middle of the next year anchored in the Guidelines for a new Action Plan.The Guidelines pave the way for the Action Plan and the latter should be designed in a manner to facilitate development in the region. This is our strong feeling that the main objectives of the Feira Action Plan - intensified co-operation with Russia and smooth integration of the future members into the EU - should be maintained in the future Northern Dimension policies.For the future success of the Northern Dimension, the European Commission should define precisely relations with and a role for partner organisations and institutions for the implementation of the Action Plan. Taking into consideration special partnership between the EU and the CBSS, such natural partners as the Council of the Baltic Sea States and other sub-regional organisations should be involved on a permanent basis in preparations and realisation of the Action Plan.The European Commission should elaborate basic principles of financing of the NDAP activities. Definition of the EU financial role could help to avoid financial difficulties for the implementation in the future. It is also an opportunity to discuss about a separate budget line for the Northern Dimension policies in the future budget of the EU. An active participation of the European Commission has resulted in the establishment of the Northern Dimension Environmental Partnership Support Fund. Using experience and interest of the European Commission and following this example, attraction of funds for such money consuming sectors as energy, information technologies and communication, transport and many others could become much easier task. It is very important, that the interoperability of the EU funds is highlighted in the Guidelines as a question of priority. Separately, I should mention areas to which Lithuania pays a particular attention. A further creation of the integrated Baltic Sea energy and natural gas markets connected with the European energy market will provide a solid basis for the efficient production, distribution and use of energy in the Northern Dimension area. The meeting in Vilnius of the Ministers of Energy of the Baltic Sea States will provide a good opportunity to discuss in essence main priorities of this sector in the Baltic Sea region and could serve as a significant input for a new Action Plan.The connection of the Baltic Sea regional infrastructure with the Trans-European network could be achievable by a full realisation of Pan-European Network Corridors I, II and IX. The actions to be taken in transport sector should be properly reflected in the future Action Plan. The development of transport sector should be combined with the ongoing efforts to speed up border crossing time and achieve two hours objective settled by the Ministers of Economy of the Baltic Sea States in the Bergen and Moscow action plans. Kaliningrad region of the Russian Federation must be able to take advantage of the opportunities created by the EU enlargement. Questions of the development of the Kaliningrad oblast should find a proper place in a new Action Plan. Particular attention should be paid to infrastructure projects, which involve Kaliningrad oblast. Connection of the Kaliningrad region railroads and roads with the pan-European transport network could decrease significantly tensions related with the transit to and from this Russian enclave surrounded by the enlarged EU. I would like to add few word on an issue, which is a hotspot for the recent EU – Russia relations, namely, the Kaliningrad transit problem. Maintaining good relations with Russia and with the Kaliningrad oblast of the Russian Federation in particular, Lithuania is prepared to seek a compromise acceptable for all sides. Provided, that Lithuania would get a fixed date for the access to the Schengen system and to the removal of the EU internal border control for Lithuania as early as possible. Of course, under the condition that Lithuania fulfils necessary commitments.Taking into account that the problem of Kaliningrad and transit to this region has been created not by Lithuania, we expect a common solution of this important issue, which would respect the sovereignty of Lithuania and could reflect a common vision of a future Europe.According to our opinion, transit problems should not overshadow even a more important task – the development of contacts with the Kaliningrad oblast. This would facilitate an economic and social progress of the region. Secured energy supplies to Kaliningrad and connection of this region with the European electricity market could be mentioned in the Action Plan as a proper actions to ensure development of the Kaliningrad oblast of the Russian Federation. The project pipelines for cross-border co-operation prepared by the neighbouring states, as it is in case of the Lithuanian – Russian cross-border co-operation on Kaliningrad inspired by the Nida initiatives, could help significantly to create and implement strategies for regional co-operation at a local level. It could be mentioned as a tool for implementation of the cross-border co-operation sector of a new Action Plan. I would like to conclude by confirming that the prepared Guidelines are a good cornerstone for the building of a new Action Plan and the Northern Dimension policies could serve as a model for closer neighbourly co-operation with the Union’s future new neighbours. Thank you for your attention.