Russia says WTO group asked to admit it by year-end

The head of a group negotiating Russia's accession to the World Trade Organisation has instructed its members to try to finish the process by the end of 2011, a Russian source close to the talks told Reuters.

Negotiators are now expected to accelerate to iron out remaining differences such as improving investment conditions for foreign car makers and curbing state support for agriculture, meat imports, and veterinary controls.

Last week the Group of Eight - the United States, Japan, Germany, France, Italy, Canada and Russia - renewed a pledge to wrap up Russia accession talks this year.

A WTO working group which is preparing a report that serves as the foundation of Russia's membership met to discuss this on Tuesday. Speaking after the meeting, the source said the group had been instructed to comply with G8 recommendations.

"Chairman of the group Stefan Johannesson has guided the members to achieve the goal formulated in the declarations made at the G8 summit in Deauville and APEC trade officials meeting in Big Sky," the source said.

These declarations envisage ensuring Russia's membership from this year. Russia has been in talks to join the global trading body for 18 years.

"We have been at the end-game stage during the last months but practice shows that even the end-game stage can last for long if negotiators want it for various reasons," said the source.

"Now the goal has been set and we will throw all the available resources towards achieving this goal."

The source said that Georgia, a group member which has opposed Russia's accession since a brief 2008 war with its former Soviet overlord, did not publicly object to the guidance. "Georgia did not say it was against it," the source said.

Group members are required to reach agreement on all remaining issues by the end of July, the source said.

Under WTO rules, otherwise it would be too late to complete preparations in time for a ministerial conference in December - effectively Russia's last opportunity for accession this year, the source added.

The European Union is opposed to Russia's new rules for its auto assembly which require foreign firms to create capacity to produce up to 350,000 cars a year locally as well as components in exchange for import duty breaks, the source said.

Brussels says the rules do not comply with WTO requirements and could result in job losses in the EU.

"We are not at the stage of making decisions. Maybe we will get to this stage tomorrow. At the moment we are considering each other's arguments," the source said.

The Economy Ministry's autos chief, Dmitry Levchenkov, said earlier four foreign carmakers and their partners had now agreed to invest USD 5 billion under the new rules.