Diplomatic relations between the Russian Soviet Federative Socialist Republic (RSFSR) and Poland were established on April 27, 1921. On August 3-4, 1921, the two countries exchanged heads of diplomatic missions.
Present-day bilateral ties hinge on the May 22, 1992 Treaty on Friendly and Good-Neighbourly Cooperation between the Russian Federation and the Republic of Poland.
After 2005, the intensity and level of political contacts were reduced considerably due to certain political concepts promoted by the then Polish leadership.
The incumbent Polish Government, formed in November 2007, prioritises the normalisation of Russian-Polish ties and voices readiness for open dialogue making it possible to address problems that have accumulated in bilateral relations. In 2008, both sides found mutually acceptable solutions to the main problems regarding agricultural produce deliveries.
The February 8, 2008 visit to Russia by Polish Prime Minister Donald Tusk, the meetings between Foreign Ministers of the two countries in Brussels, Moscow and Warsaw on December 7, 2007, January 20-21, 2008 and September 10-11, 2008, respectively, as well as the visit of Federation Council Speaker Sergei Mironov to Poland on June 8-10, 2008, had major importance for expanded political dialogue.
The sides reached a principled agreement on resetting the main bilateral cooperation mechanisms, namely, the Committee for Russian-Polish Cooperation Strategy Issues and the Russian-Polish Public Forum, which held its latest meeting in Warsaw in September 2008, and the Russian-Polish Group For Difficult Issues Resulting From the Complex History of Russian-Polish Relations, which met twice last year.
Expanding inter-regional cooperation promotes partnership between a number of Poland's voivodeships (provinces) and constituent entities of the Russian Federation as well as local government entities of both countries. . Cooperation councils between the Kaliningrad Region, St Petersburg and Poland's northeastern provinces, established under the relevant inter-governmental agreements, set the pace in this sphere.
The Russian-Polish Inter-Governmental Commission on Economic Cooperation, established under the November 2, 2004 Agreement on Economic Cooperation Between the Government of the Russian Federation and the Government of the Republic of Poland, is the main institutional form of bilateral trade and economic cooperation.
The Commission, which is co-chaired by Russian Minister of Transport Igor Levitin and Polish Minister of Infrastructure Cezary Grabarczyk, held its first meeting on March 31, 2006 in Moscow and its second meeting on March 10-11, 2009.
Just like in the previous five years, Russian-Polish trade ties continued to develop dynamically throughout 2008. According to Russia's Federal Customs Service, the 2008 bilateral trade turnover soared by 51.8% in 2008 to reach $27.221 billion, including exports: $20.192,9 (up 51.8%) and imports: $7.028,1 billion (up 51.8%). Consequently, the share of Poland in Russia's foreign trade turnover increased from 3.2% to 3.7% on the same period of the previous year.The share of Russia in Poland's foreign trade turnover increased from 6.6% to 7.9%.
On the whole, Russia remained Poland's second most important import partner after Germany and its sixth most important export partner. Russia rose from third to second place in terms of the total trade turnover, surging ahead of Italy and only falling behind Germany. Poland ranked ninth among Russia's main trade partners last year.
Russia primarily exports fuel and raw materials to Poland. Due to skyrocketing fuel and energy prices in 2008, this commodity's value increased from 89.3% to 91.1% last year. Notably, the share of crude oil and petroleum increased from 68.4% to 69.6%, while that of natural gas rose from 16.2% to 18.1%.
Exports of chemicals, primarily fertiliser, grew faster than those of other commodities (by 65.7%). Their share increased from 3.3% to 3.6%. At the same time, Russia exported fewer iron and steel products to Poland. The share of this commodity declined from 5% to 2.8% due to reduced aluminium, copper and semi-finished steel products deliveries.
In 2008, Russia continued to expand machinery and technical product exports to Poland, whose value totalled $158.2 billion. But the share of this commodity fell from 1% to 0.8% because their sales considerably lagged behind the overall export increment.
Poland primarily exports machinery and equipment to Russia. In 2008, their sales on the Russian market soared by 140% to reach 45.2% of total export volumes. Transport systems exports, including those of motor vehicles, cars and car parts, and tractors, posted the highest 300% increment. The share in Polish export of this branch alone topped 17%.
The machinery and equipment sector is followed by chemicals (20%). Poland primarily exports medications and cosmetics to Russia. This commodity is followed by foodstuffs (10.4%).
Despite positive bilateral trade development trends, the relevant indices began to plunge in late 2008 under the impact of the global financial and economic crisis. In November 2008, Russian exports to Poland declined by 20.1% on November 2007, while imports fell by another 0.2%. In December 2008, Russian exports and imports plunged by 30.2% and 6.1%, respectively.
Bilateral trade volumes declined even more in the first quarter of 2009. According to Russian statistical records, Russian deliveries to Poland have plunged by 63.1% ($1.766,1 billion) on January-March 2008. Imports from Poland declined by 40.1% ($874.3 million). Consequently, the Russian-Polish trade turnover fell by 57.7%, totalling $2.640,4 billion. Poland's share in the Russian foreign trade turnover fell from 3.8% in the 1st quarter of 2008 to 2.9% in the 1st quarter of 2009.
Accumulated Russian investment in Poland totals $1.85 billion. Russian energy giants Gazprom and LUKOIL are the two major investors operating inside the Polish economy. Gazprom is building the Yamal - Europe transit pipeline and owns a stake in pipeline operator EuroPolGas also involving the Polish Oil and Gas Company. LUKOIL operates on the Polish gas and petroleum market.
Accumulated Polish investment in Russia totals about $538.6 million, including $496.2 million worth of direct investment and $3.8 billion worth of portfolio investment. Other types of investment amount to $38.6 million.