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Moscow mayor issues warning over relations with West

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Moscow's mayor warned Friday that Russia would have to brace itself for more tension with the West and that joining the World Trade Organization too early could be ruinous for the Russian economy.
MOSCOW, September 1 (RIA Novosti) - Moscow's mayor warned Friday that Russia would have to brace itself for more tension with the West and that joining the World Trade Organization too early could be ruinous for the Russian economy.

Russia has experienced several political spats recently with Western countries, above all the United States. The latest arose this week when Senator Richard Lugar branded Russia, along with Iran and Venezuela, "adversarial regimes" using energy supplies as a political instrument, a charge that Vice President Dick Cheney had leveled in May.

Speaking to students at the start of the new academic year, Yury Luzhkov said: "We must be prepared for further complications in relations with the West. Western countries' attitudes to us have changed drastically because Russia is regaining power."

Russia has improved its financial standing considerably in recent years thanks to high prices for energy resources, its main exports. But its plans to expand presence on European energy markets were met with caution over dependence and reliability apprehensions, especially when the country was criticized for "blackmailing" Ukraine after it briefly cut off gas supplies to the former Soviet neighbor in a price dispute in early January.

Russia has defended its right to raise gas prices for former Soviet states to a free market level and has accused the West of double standards and bias, particularly with regard to former Soviet countries such as Ukraine and Georgia.

Luzhkov, who will turn 70 later this month and has been running Moscow since 1992, said negative perceptions of Russia had been deliberately formed in the West and claimed this was part of the Western system of beliefs.

Tourism pride

One such preconception seems to be the portrayal of Moscow in Western tour guides, the mayor suggested, continuing a theme picked up by city officials as part of an initiative to improve the city's overseas image.

In early August, officials said the popular Lonely Planet guide portrayed an out of date picture of the capital, which took a hit to its reputation in the early 1990s, when gangsters often seemed to be the dominant force in the much of the country after the Soviet Union's collapse.

Luzhkov chose to play up a tourist boom, saying "3.5 million foreign tourists have visited the city this year and left it in high spirits."

But he did acknowledge problems with Sheremetyevo Airport, Moscow's traditionally darkened main international air terminal, which even lacks a railroad connection, unlike rival Domodedovo in southern Moscow.

"It would be even better, if Sheremetyevo worked better," he said.

In what apparently was another clash of different beliefs, the mayor said the city and the country at large had been pressured to cave in on a ban imposed on a gay pride parade in late May. Religious figures had been particularly vocal in their condemnation of the proposed march, which might have mirrored similar events in Berlin and other European capitals.

An unsanctioned demonstration took place anyway May 27, resulting in violent clashes between sexual minorities and their opponents - representatives of a number of political parties, religious and radical movements - and the detention of some 120 people from both sides, most of whom were later released.

The ban and the break-up of the parade sparked criticism in the West and were discussed at a Council of Europe session that highlighted the importance of freedom of assembly and urged Moscow to honor its commitments.

WTO criticism

And with Russia's bid to join the WTO stalled over differences with the United States, Luzhkov thanked Washington for the delay in talks because it would help the country prepare better for membership.

Moscow wanted to sign an accession protocol with Washington at the country's debut summit of the Group of Eight nations in July, but the deadline was moved back to October over differences on meat supplies.

"Joining the WTO is a good idea, but only when a country can survive competition with other states," Luzhkov said.

The mayor, a former chemist, also highlighted financial and other problems facing Russia's research community, which has been almost totally neglected by the state, and the sluggish development of the economy too reliant on high oil prices.

The economics ministry is currently forming venture funds in an effort to increase investment in the high-tech sector, revitalize the country's industrial base and diversify the economy away from commodity exports.

However, some experts fear the idea of venture funds, extensively used in developed countries, might not work in Russia, where businesses are heavily focused on raw materials production and exports.

The mayor also urged state support for struggling agriculture citing major subsidies to farmers in the U.S. and Europe.

"Unfortunately, I cannot say that I have changed my position on the matter," Luzhkov said, adding that Russia still needed to make great efforts to improve the economy before joining the WTO.

But Luzhkov said Russia should not isolate itself from the world.

"Russia's membership in the WTO could be helpful, we must be proactive members and players in the global economic system," he said.

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