Russia formally became a member of the World Trade
Organization (WTO) on Wednesday, as an agreement signed last year
came into effect.
Negotiations between Russia and the WTO lasting 18 years ended
with an accession agreement signed in December. Russia had long been
the last major economy not to have joined the group.
The Pacific state of Vanuatu also joined the organization, raising
its total membership to 157th, WTO said.
Russia will deregulate prices for most goods after a two to three
year interim period, and five to seven years for more sensitive
goods, according to Russian media reports.
Key Kremlin concessions for the agreement include reduced support
to Russia's farm equipment, shipbuilding and aviation construction
industries.
As a result of the WTO agreement, blanket public assistance to
those sectors will stop and be replaced by state support to selected
individual producers.
Net Russian state support to agriculture reportedly will fall from
a projected 9 billion dollars in 2012-2013 to 4.4 billion in 2018.
WTO membership will also allow Russia to sell metals in the
European Union without quotas, and to as much as triple export quotas
for pine and spruce in 2013.
Export duties on natural and petroleum gas and gaseous
hydrocarbons, by far Russia's most valuable export to the European
Union, will remain unchanged.
In a statement out of Brussels, the EU described Russia's
membership of the WTO as "a major step for Russia's further
integration into the world economy."
"It will facilitate investment and trade, help to accelerate the
modernisation of the Russian economy and offer plenty of business
opportunities for both Russian and European companies. I trust that
Russia will meet the international trading rules and standards to
which it has committed," EU Trade Commissioner Karel De Gucht said.
The EU is Russia's largest trading partner, with 108.4 billion
euros (135 billion dollars) worth of EU exports to Russia in 2011.
The EU mainly imports oil and gas from Russia.
Domestic critics of Russia's WTO accession argue that reduced
state support and increased foreign competition will harm the
country's agricultural, mechanical engineering and light industrial
sectors.
Closer integration with the European and Asian economies, first
and foremost to sell more energy products, has long been a top
Kremlin priority.
