Support The Moscow Times!

EU Says Russia Trade Tensions Rising, May Go to WTO

BRUSSELS — Time is running out for Russia to settle trade disputes with the European Union on everything from pigs to cars, the EU trade chief said on Wednesday, threatening to take Moscow to the World Trade Organization now that Russia is a member of the body.

The European Union says Russia, one of its biggest trade partners, unfairly levies fees on imported vehicles, unreasonably bans EU exports of live animals and makes it costly for the bloc to export hundreds of products, especially wood.

EU Trade Commissioner Karel De Gucht said he saw little willingness in Moscow to overcome EU complaints, setting up a potentially tense EU-Russia summit in Brussels on Dec. 21, which President Vladimir Putin is expected to attend.

"The European Union will not wait forever to reach agreement. And the clock is ticking," De Gucht said in a speech prepared for delivery in Brussels on Wednesday.

"We are most certainly prepared to use all the legal avenues at our disposal, and since Russia's accession, that includes dispute settlement at the WTO," he added.

Russia joined the WTO this year after a 19-year wait, and Putin has said the country would use its membership to develop worldwide trade links.

But he said in November that the country's $1.9 trillion economy could suffer from WTO entry due to the increase in imports that would result.

Russia's team at the WTO is not fully up and running, something that may be delaying an EU decision to launch a case at the global body.

Ending its trade disputes with Russia would help the European Union, which is hoping exports will revive its economy. Russia already buys 10 percent of EU farm exports.

The European Union — a market of 500 million relatively wealthy consumers — is Russia's biggest trading partner and a big buyer of Russian energy.

The total bilateral trading relationship is worth 340 billion euros ($445 billion) a year in goods and services, according to the European Commission.

But the two sides regularly argue about energy supplies, market access and human rights, among other issues.

The commission opened an investigation in September into allegations that Gazprom was abusing its dominant position in central and eastern Europe in gas markets.

For its part, Russia may contest EU energy rules at the WTO, in what would be its first formal trade dispute at the global body.

Related articles:

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more