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FOREIGN BANKS WILL BE UNABLE TO OPEN THEIR AFFILIATES IN RUSSIA AFTER IT JOINS WTO

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MOSCOW, April 18 (RIA Novosti) - Foreign banks will not be able to open affiliates in Russia, after the latter is admitted to the World Trade Organization, Maxim Medvedkov, Director of the Commercial Negotiations Department at the Russian Ministry of Economic Development and Trade, said live on the Mayak radio station. Heading a delegation on joining the WTO, he is currently in talks with trade partners in Geneva.

Medvedkov noted that trade partners call on Russia to allow foreign banks to open their affiliates on its territory.

However, the Russian party's position on the matter remains unchanged, the official stressed. "Foreign banks can found subsidiaries with 100% foreign capital, but not affiliates in Russia. And our position on the matter is rigid," Medvedkov remarked.

In particular, the US is seeking to open its affiliates in Russia. Another round of talks with the US is scheduled for May, the official said.

The funding of agriculture and the aviation industry is also among controversial issues. Russia's monopoly on alcohol production and sale has not been settled either, Medvedkov pointed out.

On joining the WTO Russia will not raise tariffs on fuels to world prices, Medvedkov noted.

Prominent on the agenda of the talks was the issue of gas prices on the Russian domestic market. Medvedkov reminded those present that Russia assumed obligations not to put domestic gas prices lower than the cost price.

Gazprom has operated at a profit even on the domestic market for about a year," he underlined.

The official also note that Russia has virtually finished negotiating on its joining the WTO with Turkey and Iceland. Russia will have negotiated on joining the WTO with 31 trade partners after it finishes the talks, Medvedkov said.

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