G-7 Set To Meet Russia on New Terms

Western leaders will enter a new phase in their relationship with Russia this weekend at the Group of Seven leading industrialized nations summit in Naples, when their former Cold War enemy moves from being one of the issues on the table to one of the members at the table.For the first time in the 20-year history of the G-7, the Russian president will be a full-fledged participant in political discussions while remaining excluded from the economic talks. The forum still stops short of being the G-8, but it is already being called the Group of Seven Plus One.Russian officials are confident that full membership is only a matter of time, although many of their Western counterparts still have doubts about Russia's economic qualifications to join this exclusive club of the world's richest nations.Russia will remain a topic of discussion. Politically, the G-7 will deal with Russia's desire to form the Group of Eight and the industrialized leaders will also be discussing the country's progress in economic reform and the Western aid package to assist the transformation.But for the first time in the past several years, Russia is not the central issue on the agenda as G-7 leaders focus on the Bosnian peace plan, funding to close the Chernobyl reactor, jobs, trade and the battered dollar."The issue now is not so much a matter of discussing Russia as Russia's involvement in the discussions," said a Western diplomat in Moscow.The G-7, which comprises the United States, Japan, Germany, Britain, France, Canada and Italy, began inviting Soviet leaders as its guests at the end of summit meetings only with Soviet President Mikhail Gorbachev in 1990.At the 1992 and 1993 summits, the West agreed to two separate Russian aid packages totaling more than $70 billion. But with much of the money from the second package still not spent, and Russia unwilling to continuing playing the beggar's role, no new aid packages are expected.President Boris Yeltsin is scheduled to arrive Saturday in Naples and will participate in political discussions Sunday.Among the topics to be discussed will be "Russia's political entry into the Group of Seven," Interfax reported Thursday.Yeltsin is expected to meet with U.S. President Bill Clinton and the two could hold a joint news conference, Interfax said.Western officials said Russia has been included in the political session because it has emerged as central to several issues confronting the group, such as Bosnia."They are being invited to participate in the political discussions because they have an important role to play in world and global politics," said the Western diplomat.But Russian officials see the G-8 as inevitable and say their inclusion in economic talks is just a matter of time."I think there is already a mutual understanding all around that Russia should be a full-fledged member," presidential spokesman Vyacheslav Kostikov said last week. "More and more the West realizes that today there not a single question, economic or political, that can be resolved without Russia."But some Western officials disagree that there is room at the table for Russia while its economy lags so far behind. Industrialized nations are suspicious of Russia's role in the so-called "near-abroad" and are not yet totally satisfied with its progress toward transforming to a market economy."There are a lot of differences between the current members of the G-7 and other countries that wish to enter the G-7, whether it is Russia, Australia or Spain," said another Western official.On economic matters, the West has less in common with Russia than countries like China and India. The West is dealing with unemployment as a problem of the post-industrialized age while for Russia it is a matter of transition from communism to capitalism.On the trade front, U.S. President Bill Clinton is pushing a post-GATT plan to accelerate the opening of world markets in which Russia is barely a player. Russia is not a GATT member and its economy remains closed relative to the Western countries."Most of the G-7 still feel there are a number of things we'd like to talk about just among ourselves,'" said one Western official.Despite these differences, it is has been politically necessary for G-7 leaders to include Yeltsin in the discussions as a sign of support. Political membership of the group is part of an ongoing process of including Russia in what had been exclusively Western clubs. aid packages are expected.President Boris Yeltsin is scheduled to arrive Saturday in Naples and will participate in political discussions Sunday.Among the topics to be discussed will be "Russia's political entry into the Group of Seven," Interfax reported Thursday.Yeltsin is expected to meet with U.S. President Bill Clinton and the two could hold a joint news conference, Interfax said.Western officials said Russia has been included in the political session because it has emerged as central to several issues confronting the group, such as Bosnia."They are being invited to participate in the political discussions because they have an important role to play in world and global politics," said the Western diplomat.But Russian officials see the G-8 as inevitable and say their inclusion in economic talks is just a matter of time."I think there is already a mutual understanding all around that Russia should be a full-fledged member," presidential spokesman Vyacheslav Kostikov said last week. "More and more the West realizes that today there not a single question, economic or political, that can be resolved without Russia."But some Western officials disagree that there is room at the table for Russia while its economy lags so far behind. Industrialized nations are suspicious of Russia's role in the so-called "near-abroad" and are not yet totally satisfied with its progress toward transforming to a market economy."There are a lot of differences between the current members of the G-7 and other countries that wish to enter the G-7, whether it is Russia, Australia or Spain," said another Western official.On economic matters, the West has less in common with Russia than countries like China and India. The West is dealing with unemployment as a problem of the post-industrialized age while for Russia it is a matter of transition from communism to capitalism.On the trade front, U.S. President Bill Clinton is pushing a post-GATT plan to accelerate the opening of world markets in which Russia is barely a player. Russia is not a GATT member and its economy remains closed relative to the Western countries."Most of the G-7 still feel there are a number of things we'd like to talk about just among ourselves,'" said one Western official.Despite these differences, it is has been politically necessary for G-7 leaders to include Yeltsin in the discussions as a sign of support. Political membership of the group is part of an ongoing process of including Russia in what had been exclusively Western clubs.