Thursday, October 15, 2009

EU calls on Russia to explain trade plans

European Voice: EU calls on Russia to explain trade plans

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To me, this is not very surprising. Russia does not want to be bound by the restrictions that would come with full membership in the WTO. Negotiations have been ongoing for more than a decade, but membership in the WTO would hamper the Kremlin's ability to use its domestic subsidies for domestic political purposes.

Old habits die hard. How necessary these subsidies are may be questionable, but clearly the government thinks they are needed as a lever to maintain power and control within the country.