"We're now down to, frankly, a handful of issues, a handful of bilateral matters that have got to be resolved," said EU Trade Commissioner Peter Mandelson after meeting with his Russian counterparts on 15 February.
The hefty duties imposed unilaterally by Russia on exports of raw timber – angering EU members Finland and Sweden, whose large pulp and paper industries depend on Russian wood – are now the main outstanding issue.
Mandelson said that a number of options on timber would be "carefully weighed" by member states before the next EU-Russia talks in roughly three to four weeks. "Russia in its turn must make sure that it is able to give a quick response. If that happens, we can do this, this year and it's certainly desirable and important to do so."
He also urged Russia to implement a hard-fought deal on the phase-out of overflight fees, which Moscow continues to charge European airlines wishing to fly over Siberia despite Brussels' insistence that they are in violation of international aviation rules (EurActiv 27/11/06).
A breakthrough on these issues would signal that the end to almost 15 years of negotiations is near, although Russia's WTO bid could still face a number of hurdles, notably now that Ukraine's accession to the organisation has been approved (EurActiv 18/01/08).
Ties between Moscow and Kiev are strained to say the least and, as a fully-fledged member, Ukraine would be entitled to use its status to make fresh trade demands on Moscow before approving its bid. Notably, it could demand a reduction in the price it pays for Russian natural gas or an increase in the transit tariffs it charges Russia to deliver gas to European consumers, according to analysts.
However, Mandelson stressed it was important to ensure that any new demands placed on Russia at this late stage in the process should be "proportionate and reasonable".
"Frankly, we want to see Russia in the WTO, it's the largest economy of its size and importance outside of the organisation. There are benefits, substantial benefits, both for Russia and its trading partners," he said.
According to Mandelson's spokesman, the EU would seek to conclude a full free trade pact with Russia once its accession is completed - similarily to what is being done with Ukraine. Indeed, free trade negotiations between the EU and Kiev were launched on 18 February 2008, just two weeks after the finalisation of the country's WTO accession process.
