The European Union's expansion eastwards made Russia its biggest and most important neighbour. Russia's political and economic stability and Europe's most important source of its oil and gas supplies is EU's main concern. But Europe's main objective of building a strategic partnership with Russia on European values of democracy, human rights, and good governance as exhibited in Europe's Neighbourhood Policy as reflected in its Country Strategy Papers does not fare well with Pu tin's Russia. EU's Common Strategy of the European Union on Russia changes Putin's politics towards EU. Putin's emphasis on the Russian interpretation of European values is accompanied by strengthening the presidency and adapting its foreign policy priorities without, however, sidelining Europe too drastically. Russia's strategic foray into East Asia and the Middle East gives both the US and EU a sign that it together with China intend to change the power balance in East Asia and the Middle East. Its neo-realist approach to international politics will definitely adversely affect its partnership with EU.