The security environment for both NATO and Russia has changed significantly, especially since September 11, 2001. NATO and Russia face many similar challenges to their security, including transnational threats such as global terrorism and the proliferation of weapons of mass destruction. It is in their mutual interest to forge a new relationship, based on a genuine partnership that can help provide lasting security for all nations in Eurasia and can hasten Russia's integration into the family of democratic, market-oriented nations. Among other goals, this cooperation should help to build stable relations, confidence, and transparency; take fully into account the interests of all European states, including those in Central Europe; create new mechanisms for discussing and resolving inevitable differences; promote joint decision making in agreed areas on the basis of consensus; and pursue a practical agenda of common tasks, both in the European space and beyond. The NATO-Russia Founding Act of May 1997 and the NATO-Russia Permanent Joint Council (PJC) have, to an extent, been successful. But Russia has been disappointed at what it sees to be NATO's unwillingness sufficiently to coordinate with Russia and to take its interests into account prior to making decisions specially during the Kosovo conflict-to treat it as an equal. Meanwhile, NATO has questioned Russia's willingness fully to utilize the potential for cooperation inherent in the PJC and NATO's Partnership for Peace. It is clear that the potential for NATO-Russia relations is far from fulfilled and that the possibility for major misunderstanding remains significant.