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RUSSIA HAS NOT JOINED WTO YET, BUT RECEIVED ENTRANCE TICKET

MOSCOW, June 9 (RIA Novosti) - The Russian Ministry of Economic Development and Trade (MEDT) hopes to round off the negotiations with all trade partners within the framework of the accession to the WTO, said Russia's 'main negotiator' Maxim Medvedkov, director of the MEDT Trade Negotiations Department, addressing the Russian parliament's lower chamber on Wednesday.

"By the end of the year the talks on access to the <Russian> market will have been finished with most of the countries, perhaps, with all of them", said Mr.Medvedkov.

At the same time, he pointed out that there would be a certain time gap between completion of the talks and Russia's entrance to the WTO.

According to him, the work group report on system issues (compliance of the Russian legislation and law practice with the WTO standards) is to be coordinated.

"I believe, it has nothing to do with the swift negotiations process, and it will take several months to complete this work", noted Mr. Medvedkov.

Addressing the current talks he said that now Russia was backed by the states covering over 70% of Russia's foreign trade.

Mr. Medvedkov reminded that Russia had signed tariff talks protocols with 12 countries; another protocol on services had been signed with one state; protocols with five more countries were being prepared for signing.

"In terms of quantity the goal is within our reach, though a lot of reefs still remain", he said.

Commenting on completion of the EU talks, Mr. Medvedkov called their outcome "an entrance ticket to the WTO". This is Russia's major commercial partner, the MEDT official pointed out. "For us it is a landmark to keep in mind for the final phase of the talks", he added.

Mr. Medvedkov said that the Russian legislation had practically been adjusted to the WTO standards. According to him, three or four technical amendments remain to be introduced to the alcohol production and sale laws as well as to the intellectual property laws.

In Mr. Medvedkov's opinion, the entrance to the WTO will not entail commodity and service prices growth on Russia's internal market. He called "groundless" the citizens' concerns that Russia's accession to the WTO would lead to increased commodity prices with salaries being the same.

Mr. Medvedkov believes that Russia's entrance to the WTO will, on the contrary, most likely result in lower prices. "The energy prices, which in many ways determine the commodity prices, will remain the same on Russia's internal market. We will also keep the export duties on the same level", said Mr. Medvedkov explaining his surprising conclusion.

He pointed out that, according to experts' assessment, under the most negative scenario of Russia's accession to the WTO, the Russian economy losses would amount to 0.5% of the annual GDP growth.

The official also said that no branch of the national economy would experience fundamental problems following Russia's entrance to the World Trade Organization.

Russia's entrance to the WTO does not impede the CIS integration process either. "There are no such impediments", said Mr. Medvedkov.

"All the WTO members agree that Russia will be able to continue the existing and conclude new preferential agreements with the CIS members and other states", explained Mr.Medvedkov.

He said that in one week time Kazakhstan's capital Astana would host a meeting of the Euro-Asian Economic Cooperation partners (along with Russia this regional economic organization includes Belorussia and three Central Asian countries - Kazakhstan, Tajikistan and Kirghizia). In particular, during this meeting, the positions will be coordinated with Kazakhstan, which is also negotiating to join the WTO.

After joining the WTO Russia will maintain the export duties for energy and ferrous and non-ferrous scrap.

Mr. Medvedkov reminded that according to the applicable standards "the WTO did not admit states with export dities". But Russia has come to the agreement with the main trade partners, including the EU, to maintain the energy export taxes, which give 90% of the state's overall revenues from export duties. Besides, export dities for ferrous and non-ferrous scrap will be retained in order to back the competitiveness of the Russian industry that uses the scrap. Although gradual liberalization will be conducted in this field.

The rest of applicable export duties will be abolished following Russia's entrance to the WTO. An exception could be made for the goods necessary for Russia's light industry, noted Mr. Medvedkov.