Russia's tendency to view the EU's engagement with former Soviet republics as self-interested encroachment, and Europe's advice to Moscow on democracy and the rule of law may be counter-productive, Mandelson told a conference on Friday in Bologna, Italy.

Overall, according to the former minister in British Prime Minister Tony Blair's government, the current relationship between Europe and Russia involves a "level of misunderstanding or even mistrust we have not seen since the end of the Cold War.

"Neither thinks they enjoy the respect and goodwill from the other they are entitled to expect," he said.

Missile shield stressing relations

Europe and Russia find themselves at odds, among other things, over US plans for parts of a missile defense system to be based in Poland and the Czech Republic and on the future status of the Serbian province of Kosovo.

"Unless we comprehend our different perceptions of the landscape left behind by the last century, we risk getting the EU-Russia relationship badly wrong," said Mandelson.

In his view, Russia tends to see the EU's relations with former Soviet-bloc states "not as the concern of a friendly partner, but the encroachment of a self-interested neighbor."

On Monday, the diplomatic wrangling took a new turn when the German presidency of the European Union voiced concern over a Russian crackdown on opposition demonstrations over the weekend and urged Moscow to respect democratic freedoms.

Energy, trade disputes continue

Last week the EU's energy commissioner again advocated diversifying the bloc's supplies of natural gas to reduce dependence on Russian giant Gazprom.

On top of that, a lingering Russian embargo on Polish foodstuffs has delayed the start of a new wide-ranging partnership agreement.

Mandelson warned that trade issues between the EU and Russia should not become heavily politicized.

"Both believe the other is using the energy weapon as an instrument of politics," he said. "Neither thinks they enjoy the respect from the other they are entitled to expect."

Little progress expected at summit

Ahead of an EU-Russia summit next month, he believes that the discussions on democratic values may not accomplish much.

"Effective engagement is surely as much about understanding how you will be perceived as choosing what to say," he argues in an advance copy of the speech distributed in Brussels.

On Saturday in Cyprus, there will be a key meeting between EU Health Commissioner Markos Kyprianou and Russian Agriculture Minister Alexei Gordeyev to discuss the embargo on Polish meat and other farm products.

It is hoped those talks will make some progress ahead of a visit to Luxembourg on Monday by Russian Foreign Minister Sergei Lavrov on the sidelines of a meeting of his EU counterparts where all the contentious issues are expected to be addressed.