EU threatens to halt Russia’s WTO entry bid

The European Union should abandon its support for Russia’s early accession to the World Trade Organization (WTO) unless Moscow meets key EU demands, according to a confidential EU strategy document.

The advice, jointly agreed by the European Commission, the secretariat of the Council of Ministers and the German presidency, says that Russian President Vladimir Putin should be warned at the EU-Russia summit scheduled for 18 May that support for Russia’s WTO membership cannot be taken for granted if trade disagreements persist.

Russian Trade Minister German Gref has said that Russia aims to join the WTO by the end of this year.

But the strategy document says that "bilateral problems" and Russia’s disregard for implementation of existing commitments will be "major impediments" to the country joining the WTO.

It says leaders should "make clear that the EU is ready to support an early conclusion of Russia’s WTO accession, but not at any price".

The EU strategy document, discussed by ambassadors from the member states on 25 April, represents a dramatic toughening of the Union’s position towards Russia.

Conflicts between the EU and Russia over a range of issues including not just trade, but also human rights and energy, have also prompted calls to cancel the summit.

Since November Poland has been blocking talks on a new political and economic agreement because of a Russian ban on imports of Polish meat.

Lithuania is now seeking EU support to urge Russia to resume oil supplies which were cut last summer and has hinted that if the matter is not resolved it too may block the start of talks.

This week a row between Estonia and Russia over the Estonian government’s decision to remove a Soviet-era war memorial from the centre of Tallinn spiralled out of control. Russian nationalists rioted in Tallinn and Moscow, the Estonian government’s websites were shut down by cyber-attacks, and the Estonian embassy in Moscow was surrounded.

Andrus Ansip, the prime minister of Estonia, told his parliament yesterday (2 May): "We have turned to the European Union and we ask them to take immediate action. Attacking one member state means an attack against the entire European Union."

Germany, in its capacity as president of the Council of Ministers, has asked for a meeting with Russian officials to deliver a formal diplomatic complaint.

European commissioners discussed relations with Russia yesterday and afterwards the Commission issued a statement calling on the Russian authorities to meet obligations to protect foreign delegations. Siim Kallas, Estonia’s commissioner, said afterwards that the Commission had fully supported the principle of solidarity with the Baltic state.

The row threatens to overshadow the EU-Russia summit and attempts to improve trade relations.

In 2004, the EU was one of the first trading partners to conclude a bilateral accord on Russia’s WTO membership, in the hope of tying Russia in to multilateral trading rules. The EU also began a €3 million project to prepare Russia’s legal system for WTO membership.

So far Russia has completed bilateral deals with 50-plus WTO members but is still negotiating deals with Vietnam, Cambodia, Guatemala and Georgia. Under WTO rules Russia has to complete bilateral deals with any interested members before it can begin a final multilateral round of membership talks.

EU member states are angry that Russia has abandoned promises made in the 2004 agreement to reduce export tariffs and to phase out dual pricing for international and domestic rail cargo.

The European Union should abandon its support for Russia’s early accession to the World Trade Organization (WTO) unless Moscow meets key EU demands, according to a confidential EU strategy document.