Russia hopes EU talks will provide support for WTO bid

Tariff agreement paves way for trade support but there are differences over foreign policy and lifting of visas.

Russia’s bid to join the World Trade Organization (WTO) will be given a boost during a summit with the EU next week. 

Last week (24 November), Russia advanced its WTO bid by agreeing to phase out export tariffs on timber and other raw materials. The move has made it possible for the EU to support Russia’s WTO application, and the two sides are expected to finalise their accord at next week’s summit.

Russia is the largest economic power that is not a member of the WTO, and hopes to join next year, according to Igor Shuvalov, first deputy prime minister in charge of trade.

The EU has long wanted Russia to join the trade body as it believes this would improve bilateral business links. But accession will require further Russian concessions on agricultural trade, technical regulations, and investment rules in the automotive sector.

Neighbourhood concerns

President Dmitry Medvedev will lead the Russian delegation at the summit in Brussels, alongside Sergei Lavrov, the foreign minister, and Elvira Nabiullina, the minister for trade and economic development. They will meet Herman Van Rompuy, president of the European Council, José Manuel Barroso, president of the European Commission, and other top officials.

But there are significant differences in agenda. The EU has offered Russia co-operation on crisis management and broader foreign policy issues but wants to see progress on ‘frozen conflicts’ in Russia’s neighbourhood, above all in Transdniester, a Russia-backed breakaway region of Moldova.

Russia wants a future partnership agreement with the EU to have a technocratic focus, while the EU wants a Russian commitment to reform governance and the judicial system.

Russia also wants the EU to lift visa requirements for Russian citizens. But while the EU is prepared to discuss technical aspects, an official warned that a visa-free regime was unlikely in the near future.

Vladimir Chizhov, Russia’s ambassador to the EU, said that the technical requirements for lifting EU visa requirements could be met “in a matter of months”.

“The final countdown depends on political will, and there is no lack of political will on the Russian side,” he said.