MOSCOW, May 11 (RIA Novosti) - Russia will defend the interests of its banks at talks on the country's accession to the World Trade Organization, Foreign Minister Sergei Lavrov said Thursday.
The banking sector remains a ticklish question in negotiations between Russia and the United States on Russia's WTO accession, with the U.S. pressing for the sector to be opened up further to foreign banks.
Speaking after signing a cooperation agreement between the ministry and the Association of Russian Banks, Lavrov said: "We will defend Russian interests, in the banking sector and other sectors in talks with our partners, including talks on Russia's entry to the WTO."
The main area of dispute in the talks is U.S. demands that Russia allow foreign banks to open branches in the country. Russian legislation currently prohibits foreign banks from opening branches within the country, although they may set up subsidiaries, which unlike branches are held accountable to Russian law rather than the legislation of the country of the bank's origin.
Lavrov said his ministry had also signed agreements with the Russian Union of Industrialists and Entrepreneurs, the Trade and Industry Chamber, and various Russian companies. The agreements are aimed at facilitating exchange of information and mutual support.
Businesses have pressed for support from the ministry and Russian organizations abroad, he said.
"Encouragingly, Russia is strengthening its positions in the global economy," Lavrov said.
Despite hoping to finish negotiations with members of a 58-nation working party on its accession last year, Russia has still to sign bilateral agreements with Australia, Colombia, and the United States.
On world markets, in addition to Russia's natural advantages in the raw materials sector, the country is increasing its role in the manufacturing and service sectors and in banking, he said.
The strengthening of Russian banks to the level of international players will improve the country's economic security, and provide more favorable conditions for Russia's role in global economic relations, Lavrov said.
In his annual state of the nation address on Wednesday, Russian President Vladimir Putin said WTO accession talks should not be used as a bargaining chip for issues unrelated to the activity of the organization.
"We will hold [negotiations] only on conditions that fully take into account Russia's economic interests," Putin said. "It is obvious that our economy is more open than the economies of many member [countries] of this respected organization."
