Russia needs to modernize its economy and shun protectionism to gain access to Western investment, the European Union said Tuesday. Members of a European Union investment and technology firm have been in Moscow this week doing analysis to see what Russia needs to do to lower its dependence on natural resources. EU officials warned that Moscow needs to adhere to basic trade laws for a partnership of modernization.
Russian government intervention in the economy—large swathes of which it owns or controls—is common and, critics say, sometimes heavy handed. In particular, prices have been artificially supported in the vulnerable agriculture sector in recent years, with U.S. producers among the hardest hit as poultry quotas have been cut to protect Russian farmers.
Meanwhile, another issue from the analysis is the heavy visa requirements to enter Russia. Europeans reciprocate the same toll against Russians. The analysis showed that lowering visa requirements would boost trade. Russian President Dmitry Medvedev said that Russia is "prepared to lift visas as early as tomorrow" if the EU agrees to do the same, and assured that this would pose no security threat to Europe.
In addition, Russia is the only G-20 nation not in the World Trade Organization. President Medvedev urged the other members, especially the U.S. to ascend Russia as one of its members. "Everyone including our American counterparts should make up their minds. A WTO membership is not a carrot that we're being offered for good behavior, it is necessary step for Russia to become an full-fledged member of the global economy."
The marriage between these two giants will not happen over night. Opening up Russia to free trade and all the ideas of capitalism will be a long road. Russia is a huge supplier of natural gas to Europe and the Europeans want to see the country more free to do business with, but the government of Russia will be a big hurdle.
Russian government intervention in the economy—large swathes of which it owns or controls—is common and, critics say, sometimes heavy handed. In particular, prices have been artificially supported in the vulnerable agriculture sector in recent years, with U.S. producers among the hardest hit as poultry quotas have been cut to protect Russian farmers.
Meanwhile, another issue from the analysis is the heavy visa requirements to enter Russia. Europeans reciprocate the same toll against Russians. The analysis showed that lowering visa requirements would boost trade. Russian President Dmitry Medvedev said that Russia is "prepared to lift visas as early as tomorrow" if the EU agrees to do the same, and assured that this would pose no security threat to Europe.
In addition, Russia is the only G-20 nation not in the World Trade Organization. President Medvedev urged the other members, especially the U.S. to ascend Russia as one of its members. "Everyone including our American counterparts should make up their minds. A WTO membership is not a carrot that we're being offered for good behavior, it is necessary step for Russia to become an full-fledged member of the global economy."
The marriage between these two giants will not happen over night. Opening up Russia to free trade and all the ideas of capitalism will be a long road. Russia is a huge supplier of natural gas to Europe and the Europeans want to see the country more free to do business with, but the government of Russia will be a big hurdle.
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