This article analyzes the link between culture and diplomacy between Russia and the European Union, and shows the importance of cultural relations. It examines the common space of science, education and culture introduced at the 2003 EU-Russia Summit in St. Petersburg and the application of the principles of this concept that were established at the 2005 EU-Russia Summit in Moscow. It then considers EU-Russia collaboration on humanitarian action and the challenges that both parties face in this sphere. It also explains the formation of EU domestic and foreign cultural policy, and the role of European institutions and states in cultural affairs and diplomacy, as well as key elements and mechanisms of contemporary Russian foreign cultural policy. In addition, the article focuses on the European side of post-Soviet EU-Russia cultural relations. This cultural collaboration is defined as a competitive neighbourhood. EU and Russian interests collide: while Europeans try to promote their values, norms and standards within the framework of the European Neighbourhood Policy, Russia seeks to culturally influence and engage in this region for geostrategic and historical reasons. Finally, the article assesses the prospects for the EU-Russia cultural relations and emphasizes the role of ideology in improving such relations.