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Putin favours Eurasian WTO

Vladimir Radyuhin

West's system doesn't reflect realities

ST. PETERSBURG: Russian President Vladimir Putin has called for creating a Eurasian alternative to the World Trade Organisation and promised to step up energy supplies to Asian consumers in a sign of Moscow's shifting priorities from the West to the East.

At an economic forum here, Mr. Putin criticised traditional economic institutions such as the WTO for being "archaic, undemocratic and inflexible", and dominated by a small group of developed countries which indulge in protectionism.

He referred to the stalled Doha talks as proof that "old methods of decision-making simply do not work".

"The world is changing before our eyes," Mr. Putin said at the forum attended by executives from more than 200 top world companies.

The economic and financial system established by western countries after World War II "does not reflect the new balance of power".

"Countries that only yesterday appeared to be hopelessly backward, today have emerged as the world's fastest growing economies.

"While 50 years ago 60 per cent of the global GDP was produced in the Group of Seven nations, today 60 per cent of the world GDP is generated outside the G7," said Mr. Putin. The Russian leader called for creating "regional Eurasian free trade institutions" to encourage trade and growth.

He also urged the "creation of several reserve world currencies and several financial centres" to help diversify assets in the world financial system.

Russia will increase its energy exports to Asian markets "in view of the growing energy needs in the Asia-Pacific region," he said.

Russia would also launch projects in transportation, telecommunications and logistics to promote closer ties between Europe and Asia.

"I am talking about the modernisation of existing transport corridors and the construction of new routes linking Europe with Central Asia and the Far East."

Mr. Putin's declaration comes at a moment when Europe and the U.S. are dragging their feet over Russia's bid to join the WTO and threaten to link broader access for Russian business to Western markets and technologies to faster democratic reforms in Russia.

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