Russia in WTO: business forms infrastructure

By August 1, the Ministry of Economic Development should present its suggestions on the optimization of ministries and departments in the context of Russia's accession to the World Trade Organization. Economic experts discuss relations of Russian business and WTO.

Alexei Likhachyov, the deputy minister of economic development of Russia

The project of a federal law signed by president on ratification of our duties within WTO is published. Along with it all decisions of the Eurasian Economic Commissions on customs tariff regulations. Geneva and the General Secretariat of WTO are informed on complete fulfillment of Russia’s duties and the whole procedure connected with membership of Russia in WTO. In a month all this theoretical part on accession of Russia to the world club will become reality which demands new approaches. The government has thought through this serious stage. Along with special plans on adaptation of Russian economy, plans suggested by business and PMs, there is a great work on structural corrections of executive bodies and our foreign offices. By August 1 the Ministry of Economic Development will present proposals on serious correction of work not only in our ministry, but also in our basic departments, the Ministry of Industry and Commerce, the Ministry of Agriculture, our services aimed at implementation of state control. The office in WTO in Geneva will be opened. A certain correction will gain our trade offices in major capitals, leaders of WTO.

… We have no obligations on decrease of export taxes for gas, oil, and oil products. It means Russia is able to use absolutely all instruments of export regulation which it has. Along with an import tariffs we proposed an export tariff to the government. Here will be no decreases. Russia has also no systemic obligations on activity of our state companies working in the sphere of oil and gas infrastructure. We do not predict changes in organization of the oil and gas market, both internal and export. At the same time, there is an obligation that state companies should be sekf0financing and don’t finance indirectly other branches or segment markets.

Vladimir Salamatov, general director of the International Trade Center

On September 24 we plan to hold a big forum of international trade integration within the 43rd General Assembly if international trade centers which will take place in Russia in Moscow for the first time. The issues of international trade development in the context of our membership in WTO will be discussed there. The next day we plan to sign prepared treaties with leading consulting companies for encouragement of international business. After a big series of arrangements, we want to hold the international conference “Russia in the World Trade Organization” in April.

Georgy Kalamanov, deputy minister of industry and commerce of Russia

In September our industry will begin to live within WTO conditions. We have prepared the plan of actions. It includes the legal base which should be adopted in the nearest future for our industry would enter WTO smoothly and gain minimal problems from the accession.

Risks which worried us at the initial stage – for example, decrease of import tariffs – are balanced by the fact that our current subsidiaries remain. They are included in the special group rather than the forbidden group of WTO. Now we have only one subsidiary which is forbidden. But I think soon we will find a way which will help us to develop Russian industry and export of Russian products abroad.

One of the main elements is an opportunity to use instruments and mechanisms of WTO. We still cannot use protection instruments in a full-scale. The main element of work will be special protection investigations which could be initiated against production of other countries. I’m sure that measures functioning on Russian productions could be reconsidered, including the court of WTO. In general we see no global and systemic problems and risks. There are separate issues. We should study, live, and work within WTO conditions.

… As for oil and gas branch, in the sphere of equipment and infrastructure we have been implementing programs on production of new machinery together with major companies for many years. We support the segment by various means. I’m sure this support will remain. The point is that today many protection measures function: damping and special protection measures of import production. We predict that not accession to WTO might influence development and consumption of equipment, but implementation of major projects in this sphere. If Russia has major projects and we have major projects abroad, I’m sure consumption of oil and gas production will stay at a high level.

Sergey Katyrin, president of Chamber of Commerce of Russia

The Chamber of Commerce deals with the problem of accession to WTO from the very beginning of negotiations. I mean relations between business and WTO. At the moment we try to organize a channel of stable connection with Russian business which would enable us to analyze all issues and problems that might appear in the business sphere. We would process the information here in Moscow together with our colleagues from ministries, departments, together with lawyers. From this flow of information we would select the most significant problems. Some of these problems can be explained to representatives of business. Others should be presented as problems to the government and correlated departments, even to the presidential administration and President, from the point of view of reaction at the problems which appear in various segments of Russian business.

Answering VK’s question on how accession to WTO can influence relations with the Caucasus, Sergey Katyrin said: “I think just like in the rest of Russia. Does the Caucasus differ from whole Russia? I think enterprises of the Caucasus will work just like enterprises of Russia, they will have equal conditions. We will provide them with information. In the North-Caucasus Federal District the system of chambers of commerce is working. The chambers have good information systems, they will consult business with our help. Therefore, they will be in the same conditions.

As for security, the North Caucasus has places where risks are greater. Businessmen might react at them adequately, that it is more risky to have business there. As for other issues, I don’t see reasons for separation of the Caucasus from the rest of Russia.”

Katyrin refused to answer the question on Georgia’s decision changing on Russian membership in WTO: “I think all decisions have been made. What for should we discuss it? All decisions are made, at all levels. On August 23 we will be full-scaled members, notwithstanding statements of certain forces. It will hardly influence further developments.”