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Brussels: Russia should not be punished for its military action in Georgia with moves to slow its bid to join the World Trade Organisation (WTO), European Trade Commissioner Peter Mandelson said.
In contrast to comments by some US officials, including Commerce Secretary Carlos Gutierrez, that Russia's 15-year-old membership bid is at risk after last month's conflict in Georgia, Mandelson said it would be wrong to ostracise Moscow.
"I don't think it is in anyone's interests to keep Russia out of the WTO for a day longer than is avoidable," the EU's trade chief told Reuters in an interview late on Thursday.
"We have got to look at this with a longer-term perspective. Russia is clearly having difficulties reconciling itself to its post-Soviet borders, but no great power downsizes easily."
US Democratic presidential candidate Barack Obama has called for a review of Russia's WTO bid.
Russia is the biggest economy still outside the world trade body, a situation that not only weakens Russia but represents a lost opportunity for European and other countries seeking new exports and investments, Mandelson said.
To join the WTO, Russia needs to meet the concerns of existing members such as the EU and United States about areas of its economy they say would be incompatible with its membership.
Brussels wants Russia to scale back fast-rising duties it levies on timber exports which are hurting pulp and paper producers in Scandinavian members of the EU.
Trade barriers
Although the oil and gas exports on which Russia's economy relies typically face low trade barriers, membership would attract foreign investment into the country and potentially help bring Moscow closer to the West.
Russian exporters of steel and other goods would also benefit from lower import tariffs in key markets.
But hopes for an accession deal this year have faded after the Georgia conflict strained ties with the West.
Amid international condemnation of his country's tactics, Russian Prime Minister Vladimir Putin said last week that Moscow saw no advantages to WTO membership and should freeze some commitments made during entry talks.
Russia's first deputy prime minister Igor Shuvalov was quoted yesterday as saying Russia still wanted to join the WTO but that the West that was blocking the process.
Mandelson said Europe should help maintain Russia on a course that would allow it to become "a full participant in the international community, not to overreact in the short term in a way that makes the long term harder to achieve".
"That is why our reaction to the events of the summer must be a mix of firmness and realism," he said.
EU split
EU countries have been split on how to respond to Russia's actions in Georgia. Former Soviet states such as Poland and the Baltic republics, plus Britain, have pressed for tough action but Germany, France and other countries are wary about escalating a row with a major energy supplier to the bloc.
EU leaders this week condemned Russia's recognition of rebel areas in Georgia and said they would postpone talks for an EU-Russia cooperation pact, due in mid-September, if Russian troops do not withdraw to pre-conflict positions by then.
But they did not mention economic sanctions against Russia in a summit declaration.
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