EUROPEAN TRADE commissioner Catherine Ashton has asked Russian president Dmitry Medvedev to put Russia back on a path toward World Trade Organisation (WTO) membership.
Ms Ashton made the call at an EU-Russia industrialist round table ahead of today's EU-Russia summit in Nice, which will tackle economic, trade, security and foreign-policy issues.
"WTO membership may not be an immediate cure-all for Russia's economic challenges. But staying outside the WTO makes it much harder to trade or invest in Russia with complete confidence," said Ms Ashton, who noted that enthusiasm for WTO membership seems to have faded over Russian fears that it would slow growth in certain industrial sectors.
Russia has been in negotiations about joining the WTO since 1995. But its entry has been delayed, due in part to EU complaints over plans by Moscow to increase export duties on timber exports to Europe and the fees its charges European airlines to overfly Siberia.
Yesterday Mr Medvedev told the EU and Russian business leaders that Barack Obama's election as US president created a "very good" chance to build "good co-operative relations" between Washington and Moscow. Russia could develop good "neighbourly and partnership-based relations with the US" quite different from those of Soviet times, in spite of recent "deteriorations" in the relationship. Mr Medvedev said he would meet Mr Obama very soon.
The Russian president also outlined Moscow's proposals for global financial market reforms, which he plans to present to the G20 summit in Washington at the weekend. His eight-point plan included proposals for streamlining international market regulation; universally acceptable accounting standards; improvements in risk management; reforming barriers to trade and the free movement of capital; and an "an early warning system" for financial crises.
EU officials are hopeful today's summit will help persuade Russia to pursue WTO membership to create a more stable business relationship with the union. They have been encouraged by a decision this week in Moscow to delay the increase in timber export duties and by signs of a wider rapprochement following the divisive summer war in Georgia.
The EU has also played its part in relieving tensions by deciding on Monday to restart talks on a comprehensive partnership deal with Russia after a delay of almost two years. A new partnership agreement would replace an existing accord signed in 1997, which does not provide a strong enough framework for energy, political and commercial matters.
French president Nicolas Sarkozy and Mr Medvedev are expected to agree a new date for the resumption of partnership talks today. However, Russia's ambassador to the EU, Vladimir Chizhov, warned journalists this week there would be no quick agreement. "You can imagine that we're in for a really strenuous and time-consuming exercise," he said, noting that it took almost two years for EU states to agree on a mandate for the talks.
Mr Medvedev is also expected to raise his proposal for the EU and Russia to agree a new pan-European security treaty. The pact would rule out the use of force to resolve conflicts, set new arms-control limits, and propose co-operation against terrorism.
- (additional reporting: Financial Times/Reuters)