Yeltsin Prepares to Sign Trade Accord With EU

President Boris Yeltsin will travel to Greece on June 24-25 to take part in the signing of the Partnership and Cooperation Agreement between Russia and the European Union, Michael Emerson, head of the EU delegation in Moscow, confirmed Monday.Emerson said the two parties had finalized the agreement, scheduled to be signed Friday. The accord is designed to lay groundwork for increased economic and political cooperation between Russia and the EU. It covers such issues as trade in goods, rules of establishment for companies, and cross-border supply services."The agreement is a major investment for Russia in the direction of GATT membership," Emerson said.The agreement covers a transitional period until 1998, when the sides may negotiate a free trade agreement.Russia sees the agreement as symbolic because it would be the first trade accord with Europe in which the former Soviet republic is treated as a country with an economy in transition as opposed to a state-controlled economy. "The EU (in the agreement) recognizes that the speed of Russia's economic reform is relatively high," Emerson said.Negotiations for the agreement had stuck on two points: European countries' restrictions on Russian exports of nuclear fuel and Russia's restrictions on the activities of foreign banks. Yeltsin eased restrictions on most foreign banks in a decree signed earlier this month.Emerson said both points had been solved, but offered few details.According to an EU press release, "the Community will open its banking market to Russian banks wishing to establish a subsidiary" in European countries. In turn, it says, "Russia accepted a process of progressive opening of its market." Under the agreement, a December presidential decree imposing restrictions on foreign banks in Russia will be terminated Dec. 31, 1995, and will not apply to the five European banks licensed before Nov. 15, 1993.