76.The European Council underlines the Union's determination to bring the negotiations on a comprehensive trade, development and cooperation agreement with South Africa to a successful conclusion no later than the autumn of 1998.The European Union should respond in a similar spirit in good time for the next negotiating round to the proposals by South Africa in its recent revised trade offer.

77.The European Council looks forward to the important first meeting at Foreign Minister level in Vienna on 3/4 November of the EU and Members of the Southern African Development Conference.

RUSSIA

78.The European Council welcomes the substantial progress of economic reform in Russia, which has been recognised by its recent decision to stop classifying Russia as a non-market economy on anti-dumping.It welcomes Russia's new programme of fiscal, monetary and structural policy measures, in particular measures to strengthen the tax administration.Implementation of these steps and other growth-promoting reforms are the most crucial actions Russia can take to build confidence.The European Council continues to back the active engagement of the IMF and the World Bank in support of Russian reforms.It notes that the Member States are ready to consider additional conditional support from these institutions as necessary and appropriate.

79.Recalling its conclusion at Luxembourg, the European Council notes the relevance of the Finnish proposal for a Northern Dimension in the policies of the Union and the Commission's intention to submit a report for consideration at its next meeting in Vienna.It reiterates the commitment of the EU to help Russian efforts to tackle the problem of spent nuclear fuel and nuclear waste in North-West Russia and notes that such work might be taken forward under the proposed Northern Dimension .

KOSOVO

80.The European Council agreed the Declaration in Annex II.

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