What happened?
On 25 June, the Conclusions adopted by the European Council meeting during 24-25 June, on Russia observed: "The European Council expects the Russian leadership to demonstrate a more constructive engagement and political commitment and stop actions against the EU and its Member States, as well as against third countries." It also asked "Russia to fully assume its responsibility in ensuring the full implementation of the Minsk agreements as the key condition for any substantial change in the EU's stance." However, it also observed: "The European Council reiterates the European Union's openness to a selective engagement with Russia in areas of EU interest."

On 25 June 2021, German Chancellor Angela Merkel, after the meeting with the rest of the European Union leaders, referring to a possible European summit with Russia said: "It was a very comprehensive discussion and not an easy one…There was no agreement today on an immediate leaders' meeting." 

What is the background?
First, the EU-Russia relations since the Minsk agreements in 2014. Ever since Russia annexed Crimea in 2014, there have been tensions between the EU and Moscow. The Minsk agreements signed in 2015 on Ukraine has become one of the basis for the EU's Russia approach. Since 1997, the EU and Russia have been holding regular summits, but they came to an end in 2014. Ever since, the EU has repeatedly been emphasising on "five guiding principles" that include the following: "full implementation of the Minsk agreements; closer ties with Russia's former Soviet neighbours; strengthening EU resilience to Russian threats; selective engagement with Russia on certain issues such as counter-terrorism; and support for people-to-people contacts." Sanctions on Russia remained one of the primary EU strategies. However, the sanctions strategy of the EU have not yielded much results to what Europe wanted Russia to do. Instead, sanctions only reduced Europe's leverage.

Second, the idea of selective engagement with Russia. Irrespective of what the EU wants, there were selective engagements of European countries, for example, Germany with Russia over the gas pipelines. Despite objections from most of Europe, Germany has pushed its Nord Stream II plans with Russia. Merkel also had a meeting with Putin in 2020. Now, Germany, along with France, is floating the idea of engaging with Russia. According to President Macron, Europe needs dialogue to defend its interests and is necessary for the stability of the European continent. There seems to be an understanding to discuss with Russia on issues relating to climate, health, JCPOA, Syria and Libya. 

Third, the fallout of the recent US-Russia summit in Geneva. As a part of his Europe tour, US President Biden had an exclusive summit with Putin in Geneva. Though there were no major breakthroughs in the Geneva summit, it has established a process. Perhaps, France and Germany are looking at the larger picture vis-à-vis Russia.

Fourth, the opposition to Europe-Russia engagement, especially from the Baltic states. While Germany and France are floating the idea of an engagement, the Baltic states – Latvia, Lithuania and Estonia are apprehensive, given the immediate geography with Russia and the long history.

What does it mean?
While the Baltic States are opposed to the idea of a direct dialogue with Russia, the idea of talking directly with Kremlin is finding roots in Europe. While there is likely to be an initial opposition, the debate is likely to expand and reach a common minimum programme within Europe.