Putin Says No Advantages For Russia From WTO
MOSCOW, Aug 25 2008 (Reuters) - Prime Minister Vladimir Putin said on Monday Russia sees no advantages to WTO membership and should freeze some commitments made during entry talks in a sign Moscow is pulling away from the West after its war in Georgia.
Putin, quoted by Russian news agencies during a government meeting, said Russia’s economy would incur a heavy burden in meeting World Trade Organisation membership requirements and that some of these demands were against the country’s interests.
“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,” Vladimir Osakovsky, an analyst at UniCredit, said.
“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.”
Russia, the world’s 10th largest economy, is by far the biggest country still outside the World Trade Organisation (WTO) and has been negotiating membership since 1995. It had previously been thought a deal could be reached by year-end.
The Kremlin has faced criticism in the West after a brief war over the Georgian breakaway province of South Ossetia, when Moscow launched a massive counter-attack to Tbilisi’s attempts to take the province by force.
Putin said Russia should withdraw from some of the agreements signed earlier on WTO accession, Interfax reported.
“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 which currently oppose the interests of the Russian Federation,” Putin said.
“We don’t feel or see any advantages from membership, if they exist at all. But we are carrying the burden,” Interfax quoted the prime minister as saying. “We need to make this clear to our partners.”
“Certain sectors of our economy, above all agriculture, are carrying a fairly heavy load,” RIA Novosti news agency quoted Putin as saying, referring to WTO accession.
CONFRONTATION
Analysts said Putin’s statement raised questions over the economic programme set out during the choreographed handover of the presidency to Dmitry Medvedev in May this year.
“It’s another reason for investors to question the government’s commitment to not just the reform agenda but the whole economic programme that was set out as part of the political transition,” Chris Weafer, chief strategist at Uralsib brokerage in Moscow, said.
“The main concern for investors from all these recent events is that the programme could be materially changing, i.e. perhaps less emphasis on the diversification and the openness.”
As tensions in the Caucasus region persist, several Western officials, including U.S. Commerce Secretary Carlos Gutierrez, have suggested Russia’s military operations in Georgia have put its WTO bid at risk.
Accession depends on Russia settling several outstanding issues, including export duties on timber, farm subsidies and the role of state-controlled enterprises such as gas producer Gazprom.
U.S. President George W. Bush has said the fighting was hurting Russia’s efforts to join modern global economic and security institutions.
In addition, on a bilateral level, WTO rules give member state Georgia some leverage over Russia’s candidacy. A candidate country must reach agreement with all 153 members, as well as agreeing separate deals with any member that seeks them.
Georgia objects to Russia’s support for the rebel regions of South Ossetia and Abkhazia, saying it cannot control customs on Russia’s borders with these regions.
As a result it is blocking formal talks on Russia’s accession while allowing informal negotiations to continue.
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Meanwhile per DEBKAfile this morning it looks like we are going to Poti. This should prove very interesting.
US aid warship will defy Russian control of Georgian port of Poti
DEBKAfile Special Report
August 26, 2008, 2:34 PM (GMT+02:00)
The US embassy in Tbilisi said Tuesday, Aug. 26, that two warships will deliver aid to Georgia Wednesday through the Black Sea port of Poti, the day after Russian forces announced they would search all incoming cargoes.
The first US aid warship docked at Batumi Saturday, to avoid friction with the Russian naval, infantry and armored forces which control Poti port.
The Black Sea confrontation between Russia and the US-led NATO forces predicted by DEBKAfile last week is building up inexorably to a climax.
In Moscow, DEBKAfile’s military sources report, Capt. Igor Dygalo, deputy commander of the Russian Navy, announced that the Moskva missile cruiser would carry out a naval exercise on the Black Sea.
The Russians are clearly marking out their control of the Black Sea in the face of the USS McFaul guided missile destroyer’s arrival with aid for Georgia. Our sources report that the McFaul carries 50 Tomahawk cruise missiles capable of striking land and sea targets.
Capt. Dygalo said the Moskva would practice its wire-guided weapons, communications and missile guidance systems. The exercise will no doubt interfere with the movements of NATO vessels, as clearly intended.
Russian Dep. chief of staff Gen. Anatoly Nogovitsyn spoke Monday, Aug. 25, of nine Western vessels in the Black Sea - 2 American, 4 Turkish and the rest Polish and Spanish. He said their presence was not a cause for concern.
However, DEBKAfile’s military sources report that a clash is becoming inevitable, whether among these hostile fleets or over Russian troops’ demand to search the cargoes of the two US warships when they dock at Poti Wednesday: the US Coast Guard cutter Dallas and the command and control USS Mount Whitney . The latter is equipped with facilities for commanding sea, land and air combat operations.
August 26th, 2008 at 5:41 amThis guy is like that one drunk dumbass at the party who challenges everyone to a fight. there are only 2 possible outcomes when that happens. people just laugh at him, or he gets his ass kicked.
August 26th, 2008 at 5:48 amIt’s looking like the “he gets his ass kicked option”.
US aid warship will defy Russian control of Georgian port of Poti
August 26th, 2008 at 5:56 amSorry about the double post thought the first one got eaten by the spambot
August 26th, 2008 at 5:58 amAZ Patriot (Merchant of Death)
good post. and that should be very interesting. will be a dumb move if Russian troops think they are going to get access to a US naval ship. they’ll be searching a tomahawk missile instead.
August 26th, 2008 at 6:16 amYep right up the asskie!
August 26th, 2008 at 6:24 amPutin’s playin the world like a 3 string banjo—–
workin for him so far!
August 26th, 2008 at 6:29 am