Putin: No advantages for Russia from WTO

Prime Minister Vladimir Putin says Russia sees no advantages to World Trade Organization (WTO) membership. Putin also said his country should freeze some commitments made during entry talks in a sign Moscow is pulling away from the West after its conflict with Georgia. Putin: No advantages for Russia from WTO Quoted by Russian news agencies during a government meeting, Putin said Russia's economy would incur a heavy burden in meeting WTO membership requirements and that some of these demands were against the country's interests. "We propose continuing negotiations within the framework of the working group on WTO accession, but informing our partners of the need to exit some agreements that currently oppose the interests of the Russian Federation," he said. "We don't feel or see any advantages from membership, if they exist at all. But we are carrying the burden," he said. Agriculture was particularly affected, Putin added. Russia, the world's 10th-largest economy, is by far the biggest country still outside the WTO and has been negotiating membership since 1995. It had previously been thought a deal could be reached by year-end, but First Deputy Prime Minister Igor Shuvalov said there was no prospect of joining within the coming year and suggested political motives were delaying accession talks, Interfax said. The Kremlin has faced strong Western criticism for crushing Georgia's attempt earlier this month to take back by force the rebel province of South Ossetia and continuing to exert pressure on key oil, gas and trade transit routes in its former vassal. "Judging by the rhetoric of the last few days, it seems things are moving toward a sharp confrontation between Russia and practically the whole of the rest of the world," says Vladimir Osakovsky, an analyst at UniCredit. "That has every chance of spilling out into real action from both sides. Perhaps the halting of the WTO accession process could be the first real step, a real consequence of the war." U.S. President George W. Bush has said the war with Georgia was hurting Russia's efforts to join modern global economic and security institutions, and his Commerce Secretary Carlos Gutierrez suggested Russia's WTO bid was now at risk. Accession depends on Russia settling outstanding issues such as export duties on timber, farm subsidies, and the role of state-controlled enterprises such as natural-gas producer Gazprom. Candidate countries must also reach agreement with all 153 members, handing WTO member Georgia leverage over Russia's candidacy. Tbilisi objects to Russian support for Georgia's rebel South Ossetia and Abkhazia regions, saying it cannot control customs on their borders with Russia. It is blocking formal negotiations on Russian accession while allowing informal talks to continue. PM Putin chairs a cabinet meeting in Moscow on Monday (Beta)

Putin: No advantages for Russia from WTO

Quoted by Russian news agencies during a government meeting, Putin said Russia's economy would incur a heavy burden in meeting WTO membership requirements and that some of these demands were against the country's interests.

"We propose continuing negotiations within the framework of the working group on WTO accession, but informing our partners of the need to exit some agreements that currently oppose the interests of the Russian Federation," he said.

"We don't feel or see any advantages from membership, if they exist at all. But we are carrying the burden," he said. Agriculture was particularly affected, Putin added.

Russia, the world's 10th-largest economy, is by far the biggest country still outside the WTO and has been negotiating membership since 1995.

It had previously been thought a deal could be reached by year-end, but First Deputy Prime Minister Igor Shuvalov said there was no prospect of joining within the coming year and suggested political motives were delaying accession talks, Interfax said.

The Kremlin has faced strong Western criticism for crushing Georgia's attempt earlier this month to take back by force the rebel province of South Ossetia and continuing to exert pressure on key oil, gas and trade transit routes in its former vassal.

"Judging by the rhetoric of the last few days, it seems things are moving toward a sharp confrontation between Russia and practically the whole of the rest of the world," says Vladimir Osakovsky, an analyst at UniCredit.

"That has every chance of spilling out into real action from both sides. Perhaps the halting of the WTO accession process could be the first real step, a real consequence of the war."

U.S. President George W. Bush has said the war with Georgia was hurting Russia's efforts to join modern global economic and security institutions, and his Commerce Secretary Carlos Gutierrez suggested Russia's WTO bid was now at risk.

Accession depends on Russia settling outstanding issues such as export duties on timber, farm subsidies, and the role of state-controlled enterprises such as natural-gas producer Gazprom.

Candidate countries must also reach agreement with all 153 members, handing WTO member Georgia leverage over Russia's candidacy.

Tbilisi objects to Russian support for Georgia's rebel South Ossetia and Abkhazia regions, saying it cannot control customs on their borders with Russia. It is blocking formal negotiations on Russian accession while allowing informal talks to continue.