Putin’s progress to WTO

Europe has given the green light to Russia’s bid to become a member of the World Trade Organisation, defusing a spat over energy prices.

The agreement will be a welcome shot in the arm for EU-Russia relations after the deal was agreed at a summit in Moscow last weekend.

Energy prices were the biggest stumbling bloc, but Russia has given guarantees it will virtually double the prices it provides to domestic firms by 2010 to ensure that EU companies are not unfairly penalized.

With 25 per cent of EU energy coming form Russia, a deal on disparate prices for domestic gas and export gas was key to getting a deal.

Romano Prodi, president of the European Commission said: "Today the EU and Russia cement further their trade and economic relations.”

“This deal brings Russia a step closer to the international trade family, the World Trade Organisation, where it belongs."

Russian president Vladimir Putin was upbeat, claiming Europe had something to gain as well from the increased ties.

“We think our partnership could give the European continent far greater weight in world politics, in the economy, trade, and in deciding global security issues,” he said.

Alongside the “trade-related energy issues”, disputes were defused surrounding tariffs on aircraft and cars, scrap metal, financial services, telecommunications and news agencies.

In more detail, the agreement means Russia’s average tariff level will not exceed 7.6% for industrial goods, 11% for fishery products and for 13% for agricultural goods.

There will be further tariff rate quotas for fresh and frozen meat and poultry worth around €600 million annually.

The green light from Brussels will not mean immediate WTO entry for Moscow, however.
Russia must first sign agreements with Japan, China and the US.

Washington has been particularly vociferous of late, criticising Russia for breaching privacy and copyright laws which are leading to a billion annual loss for US firms.

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