Russia's WTO accession could be put off indefinitely - MP

MOSCOW, April 11 (RIA Novosti) - Russia will only join the World Trade Organization on terms it considers favorable, a senior member of the lower house of parliament said Tuesday.

"I believe that the process of Russia's accession to the WTO should be only favorable," State Duma speaker Boris Gryzlov said. "If [accession] conditions do not suit our country, than it [accession] will be delayed for a long period."

Under WTO regulations, Russia must sign bilateral accession agreements with all members of the 58-nation WTO Working Party set up to negotiate its accession. Negotiations are still ongoing with the United States, Colombia, and Australia.

The main issue stalling Russia's accession to the WTO is American demands that Russia allow foreign banks to open branches in the country. Russian legislation currently prohibits foreign banks from opening branches in the country, although they may set up subsidiaries.

Alexander Shokhin, the head of the Russian Union of Industrialists and Entrepreneurs, said Tuesday at a conference on foreign banks that Russia would make no concessions on the issue.

"We will not be joining the WTO at any cost," he said.

A subsidiary is a separate legal entity under Russian law, and must abide by the regulations of the Central Bank, which exercises oversight functions and can impose sanctions in the event of violations. Branches are less subject to Central Bank control, as they are divisions of the parent company and subject to its regulations and the laws of its country of origin

Shokhin said the bank branches problem was political and had no economic grounds, and that many banks with 100% foreign stake operated in Russia without any limitations. He added that Russia could make concessions over other issues in areas like intellectual property protection, and agriculture.

Speaker Gryzlov, who also heads the majority United Russia party, said Tuesday the party had planned to hold a session Monday to discuss Russia's accession to the WTO with Economic Development and Trade Minister German Gref, but that Gref had sent a letter asking to postpone his participation until fall.

Party members held the session without Gref, Gryzlov said.

"The proposals we are faced with should certainly be only those Russia needs," Gryzlov said. "We must not join [the WTO] on unfavorable conditions. This is the opinion of United Russia party members."

On Monday U.S. Senator Richard Burr said in Moscow that Russia could join the WTO if it settled problems over protection of intellectual property rights, insurance policies and agricultural machinery.