This second situation report is primarily aimed at the Nordic Council, which has long been engaged in work involving the Northern Dimension. The report will also serve as information for the EU Commission and (last, but not least) as a source of information and inspiration for the Nordic Council of Ministers’ individual Councils of Ministers and Committees of Senior Officials. The Nordic Council of Ministers participates actively in the implementation of the EU’s second Northern Dimension Action Plan 2004-2006. The Council of Ministers welcomes the EU Commission’s initiative aimed at involving regional organisations in the work. Much progress has been made since the Council of Ministers submitted a written report on the preparation of the second action plan, both in terms of tangible projects and initiatives and regarding organisation and types of co-operation. Concomitantly with the Council of Ministers striving to contribute more to the EU’s work in Northern Europe, the Council of Ministers’ activities in the Baltic States and Russia are also being evaluated this year. The co-operation with Estonia, Latvia and Lithuania is being expanded on the basis of the new relations that will be established with these countries as a result of their EU membership. The Council of Minister’s current co-operation with North-West Russia has also been expanded. The report has been prepared in the Secretariat for the Nordic Council of Ministers.