Without doubt, the European Union, Russia's main trading partner, which is currently engaged in a dialogue with Russia over a "common economic space", would benefit enormously from the WTO-based attempts to harmonize Russia's semi-market economy with international standards, just as Russia is keen on more tangible results from the on-going energy dialogue with the EU, given the fact that EU's imports from Russia are mainly energy (67%). Although WTO negotiations do not cover the energy field, the mere issue of state subsidy of the agricultural sector's energy needs alone points at the need to link those negotiations with price regulatory mechanisms on the domestic market, impacting the large state-owned enterprises who often enjoy monopolistic rights.
Since WTO accession fosters greater economic transparency, it is hardly surprising that some of the biggest irritants to this issue have come from the state enterprises. Medvedev's hand may soon show in this area, by accelerating the privatization of various state sectors, such as telecommunications, by liberalizing the structure of private investments in those sectors. Indeed, Medvedev's top priority is to improve the country's investment climate, given the positive recent improvements in foreign direct investment, by promoting trade, providing better protection of property rights, infrastructure development, and improving the financial services.
1 comment:
The more transparency, the better!
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