A number of issues discussed by German Gref and EU Trade Commissioner Pascal Lamy earlier are included in the agenda. In particular, tariffs on aircraft and cars and access to Russia’s services market are scheduled for discussion.

According to the newspaper Izvestia, Mr. Gref will inform the EU Trade Commissioner on measures the Russian government will take to open the Russian insurance market to European companies. The Economy Minister will also explain to Mr. Lamy what happens in the Russian gas industry.

Earlier, German Gref said he would present new proposals in Brussels. But he refused to elaborate on the issue. The Economy Minister only stressed that of all countries with which Russia was discussing the terms of its accession to the WTO, the dialog with the EU was the most difficult.

The European Union seeks maximum concessions for its producers in the fast-growing and conveniently located market. And Europe’s dependence on Russian energy supplies makes its leadership pay close attention to the issues of pricing policy for gas and electricity. For this reason, the EU also demands access to Russian pipelines for foreign companies, within the framework of the Russia-WTO talks.

It will be very difficult for the Russian delegation to agree with the European Commission, but this is very important, the Izvestia stresses. The results of Russia’s talks with another twenty countries, oriented towards the EU, depend on the position of the European Union. Part of the “new proposals” that the Economy Minister is going to submit to Mr. Lamy, concern the presence of European insurers in Russia and the possibility of their operation on Russia’s long-term insurance market.

The Russian Finance Ministry amended the law “On the organization of the insurance business”, increasing the share of foreign capital in the insurance sector from 15 percent to 25 percent. But the European insurance community expects more significant concessions from Russia, which aspires to join the World Trade Organization.

Foreign companies currently use no more than 5 percent of the quota. The EU companies want to get access to long-term insurance in Russia, and their demands are justified. A Russia-EU partnership and cooperation agreement was signed on the island of Corfu in 1994, which says that Russia shall lift restrictions on the European insurers on the Russian market. The State Duma ratified this agreement in 1997, but it is still not being implemented.

The demand for life and pension insurance is currently very low in Russia, but the Western insurers look into the future and see Russia as a very promising market.

Russia’s position on the access of foreigners to its banking and telecommunications sector remained has not changed. The government insists on Rostelecom’s six year monopoly on long-distance calls and a 25 percent share for foreigners in the capital of Russian banks; and it is against foreign banks opening their subsidiaries in Russia.