MOSCOW, June 2 (RIA Novosti) - Russia's foreign minister said Friday that the United States was making excessive demands with regard to the ex-communist country's financial system during its talks to join the world's largest trade body.
Russia has consistently said that its financial sector is still too weak to withstand direct competition on its own market from branches of foreign banks and other financial institutions, whereas the U.S. has been seeking permission for its banks to open branches in the country during Russia's negotiations to join the World Trade Organization.
And Sergei Lavrov reiterated that Russia would maintain its position and said foreign financial institutions were happy with the current arrangement under which subsidiaries are held accountable to Russian law rather than the legislation of the country of the bank's or the company's origin, unlike branches.
"We have often drawn attention to the fact that the financial organizations in the U.S.A. and other Western countries that are already working on the Russian market are satisfied with the current state of affairs and the proposals that Russia has made as part of preparations to join the WTO," Lavrov said.
The minister suggested he was unclear about why the U.S. institutions seemed happy, but Washington's negotiators were not. "This is a strange situation," he said.
The minister added that Washington was well aware of Moscow position at the talks, which requires "a responsible approach to the future of Russia's economy and industry."
Russia has signed bilateral protocols with 56 members out of the 58-member Working Party on its accession to the WTO. It is also yet to complete talks with Australia.
