Brussels, 15/02/2008 (Agence Europe) - At a press conference on Friday 15 February, following meetings the previous day with several Russian government representatives, including Finance Minister Alexei Kudrin and his counterpart in Trade Elvira Nabiullina, EU Trade Commissioner Peter Mandelson said he was “convinced” that Russia “really wants to conclude negotiations and join the WTO in 2008”. “I give it my full support,” he added, underlining the “substantial benefits” for all its members of an economy “of the size and importance of Russia” joining the WTO. Speaking about the differentiated tariffs on the export of timber, the main obstacle to a bilateral agreement with the EU on access to the goods and services market which would open the way for Russian accession to the WTO (see EUROPE 9602), Mandelson said he saw a “basis to resolve this issue”, stated that further consultation would be needed on both sides in the coming three or four months. In general terms, he appeared satisfied with the will shown by Moscow, opining that Europeans and Russians were “now down to a handful of issues, a handful of bilateral matters that have got to be resolved”. Apart from differentiated timber export tariffs, rail duties and issues in the veterinary/plant health and intellectual property areas are still pending. Without naming any countries, Mandelson called on the other WTO member countries engaged in bilateral discussions with Moscow, as part of the Russian accession process, “not to introduce suddenly new demands at this stage the process”. “We've got to make sure that the requests being made to Russia are proportionate and reasonable,” he stressed. However, Georgia, which has to tie up a bilateral agreement with Moscow on market access, is blocking Russian accession. In the face of difficulties on customs issues, the political reasons for which are difficult to deny, an agreement with Tbilisi could take some time yet.
Mandelson also said that the arrival of a new team in power, led future Russian President Dimitri Medvedev would not change relations between the EU and Moscow. He said that he thought Medvedev had a sound understanding of the world economy, the role of liberalised trade and investment conditions, and the importance of market forces. “I think that he also has an opinion on the role of the state and the government on the management of Russia's natural resources and we have to understand and respect that,” he went on, before adding, “But economic nationalism, protectionism and too great a state role in the economy will not help the development and diversification of the Russian economy”. Mandelson reassured Moscow on the process of reform in the European internal energy market. “You know that we plan to reform and restructure the European energy system to make it more competitive. These changes do not threaten Russia or Gazprom,” he said, aiming his message at the Russian authorities, underlining the importance of energy cooperation between the EU and Moscow “based on principles of transparency and respect of mutual interests”. (E.H.)