Foreign ministers of the 15-nation European Union (EU) will discuss the organization's relations with Russia and the Balkans at their first General Affairs Council meeting under Portugal's presidency on Monday in Brussels.

Security and defense as well as institutional reform issues are expected to be priorities at this meeting.

EU sources said some decisions are expected on Russia and the Balkans. On Russia, the Council of EU ministers will have to take a very delicate decision on how to balance the spirit of the Helsinki Summit last December on Chechnya-related sanctions and the longer-term interests of building relations with Russia.

On the Balkans, decisions to be taken include setting up new links with Croatia, defining a desirable path towards a Stability and Association Agreement with Albania, and giving the European Commission a mandate to negotiate with the former Yugoslav Republic of Macedonia, according to the sources.

Analysts said the ministers must decide how far, in the new, post-Yeltsin context, it makes sense to damage long-term EU interests by stifling its relations with Russia at the start of what could be a new era.

Portugal, who takes over the six-month rotating EU presidency this January, made it clear in the run-up to this meeting that the EU has "to take note of the democratic conduct of the recent Duma elections and of the smooth, constitutional transition of power after the resignation of President Yeltsin," and that the EU wants to do everything it can to boost the chances of a free and fair campaign for the Russian presidential elections scheduled for March 26.

Observers believe the EU General Affairs Council is likely to underline the importance it attaches to Russia as a major partner of the EU. (Xinhua)