The European Union and Russia are heading for a trade deal this month that would be a key stepping stone in Moscow's ambition of World Trade Organisation (WTO) entry, the European Commission said today.
It gave no details of the agreement, which would be ahead of a May 21st EU-Russia summit in Moscow.
The two sides have held tough talks, particularly about low gas prices for Russian firms which the EU sees as an effective subsidy for Russian industry.
"Substantial progress was achieved during the negotiating session on all issues across the board, including market access in goods and services and systemic issues like energy," the Commission said after trade talks in Paris.
Russia began its WTO entry process in 1993. It has accelerated under President Vladimir Putin and Moscow hopes to draw up final entry terms in late 2004.
It must first agree bilateral deals with top trade partners. As well as demands on gas prices, the EU has also wanted Russia to cut barriers to car and aeroplane imports as well as open its telecoms and financial services markets.
The WTO entry process involves other formal steps such as bringing its legislation into line with the trade body's rules.