European leaders yesterday dangled a wide-ranging trade liberalisation deal before Vladimir Putin yesterday in a fresh attempt to persuade Russia's president to free up its energy market.

José-Manuel Barroso, European Commission president, wants to use every lever at his disposal to win western access to Russia's energy sector when the two sides open talks on a new partnership pact next year.

"We propose to move towards a free trade agreement to be completed once Russia accedes to the World Trade Organisation," Mr Barroso said.

Mr Barroso's aides say he wants to negotiate a "comprehensive and legally binding" new partnership agreement with Russia on trade liberalisation, energy, terrorism and illegal migration. At the heart of Mr Barroso's grand bargain is a simple equation: Europe will offer Russia better access to its internal market if Moscow agrees to help ease the EU's growing fears about energy security.

Russia is the EU's third biggest trading partner, with goods and services worth €163.13 billion a year passing between them.

Mr Barroso was given a frosty reception in Moscow by Mr Putin this year when he urged Russia to give western companies a greater role in developing energy reserves and pressed Gazprom to open its pipelines to rival suppliers.

The current EU-Russia partnership and co-operation agreement expires at the end of 2006, but is likely to be extended while the two sides try to agree a new accord. - (Financial Times service)