Deal Helps European Firms

The agreement on trade and cooperation signed Thursday by President Boris Yeltsin and European Union leaders in Corfu makes it easier for EU businesses to operate in Russia. The treaty, which is legally binding, guarantees that once established, EU companies can operate under the same terms as Russian businesses and cannot be discriminated against."It's the most comprehensive and legally binding economic treaty that Russia has ever signed, on the scale of limited arms agreements," said Michael Emerson, European Commission ambassador.Emerson said old sets of trade restrictions will be removed with some exceptions in sensitive areas such as textiles, steel and uranium, which he said comprised only about 13 percent of Russia's exports to the EU. A German diplomat said that, although it was hard to predict, "trade could possibly rise two- or three-fold."Russian officials in Moscow were equally optimistic about the signing."Obviously, we are hoping to increase trade, but a lot depends on Russia, the quality of our products," said Valery Gorsky, chief scientific specialist at the National Market Research Institute.Russia's position on EU banks, after a transitional period, will become non-discriminatory, Emerson said. However, in order to defend its "infant" banks, Russia will be allowed a three- to five-year period, during which it will be able to apply forms of discrimination in a "limited way" to give Russian banks "breathing space."