There are no more obstacles on Russia’s path to the WTO. The protocol of ascendancy was signed at the WTO Ministerial Conference in Geneva on Friday. Premier Putin signed the final document on Friday morning. Russia’s delegation in Switzerland was headed by First Deputy Prime Minister Igor Shuvalov.

Signatories included Elvira Nabiullina, Head of Ministry for Economic Development and the WTO Director-General Pascal Lamy.

De-facto approval was given by Russia’s trade partners as early as 10 November, when the WTO ascendancy working group voted unanimously for the entire set of new member responsibilities. The WTO Ministerial Conference adopted the package on Friday night. WTO Director-General Pascal Lamy expressed hope that ‘Russia will become a leader and an active member of the WTO”.

U.S. Trade Representative Ron Kirk stated that only with Russia’s ascendancy “will the WTO become truly global”.

Following the WTO Ministerial Conference approval, Russia has 220 days to ratify the documents in parliament, and 30 more days for the Head of State to sign the laws.

Russia will become a full WTO member no later than end-Summer 2012.

Russia holds one of the WTO ascendancy records. The process began in 1993, lasting 18 years. “We managed to drag it out longer than some of our major partners such as China”, said President Dmitry Medvedev during his visit to Germany in November.

Russia’s ascendancy was hindered by intellectual piracy, ban on American chicken legs, bans on Georgian and Moldavian wine, restrictions on timber export, car assembly procedures etc.

The key protocols were signed with the European Union in 2004 and with the USA in 2006.

A source close to the WTO told RIA Novosti on Friday that the USA and Russia have decided to refrain from using the WTO regulations in mutual trade. The two countries were acting in line with Article 13 of the Marrakesh agreement, stipulating ‘non- application of multilateral trade agreements between particular members’.

The source says that the USA decided to use the right for non-application of new post-ascendancy trade regulations to avoid a clash with the Jackson Vanik amendment, which needs to be repealed in Congress. The White House says the Jackson Vanik amendment wil become a priority for the American Administration in 2012.

Russia managed to come to an agreement with Ukraine in 2008. The last block was Georgia. Tbilisi insisted on changes in Abkhaz and South Osetian border control, claiming these territories and calling for international control.

Ministry for Economic Development states that Russia’s ascendancy conditions are beneficial for the Russian business.

Russia can now start with raising the import barrier to approx.11.85% from the current 10.293%. Agricultural products – down from 15.6% to 15.178%, manufactured goods – initially up to 11.2% from 9.387%. Later, the transition period will see a drop in rates and the average import rate will be down to 7.147%, including 11.3% for agriculture and 6.4% for manufactured goods.

The transitional period will take an average of two to three years, depending on industry, and five to seven years for more sensitive goods. Russia will also accept responsibilities for 116 service sectors out of 155 listed by the WTO. Most of the time, these responsibilities will not lead to tougher regulation, says the Ministry for Economic Development.

Insurance will see some radical change. Foreign participation quota must be raised from 25% to 50%, and the 49% restriction on life and mandatory insurance company ownership for foreign shareholders will turn into a 51% limit, expiring in 5 years.

9 years after joining the WTO, Russia will allow opening branches of foreign insurance companies.

“There is no harm whatsoever for Russia in joining the WTO”, says Alexey Portansky, World Economics and World Politics Professor at the Higher School of Economics. “However, the Russian Agency for Health and Consumer Rights will find it difficult to oppose the import of Georgian wine and mineral water”.

Russia’s ascendancy to the WTO will benefit the country’s economy, boost its growth and lead to diversification, say Fitch experts.

“The tariff policy will be more predictable, the budget will have a number of obligations. Russian companies, including iron and steel, will have a tangible legal basis for fighting price dumping”, agrees Troika Dialog analyst Anton Struchenevsky.

Last year’s World Bank research says Russia’s revenue from new trading reform will amount to some USD 40bn a year in the mid-term and USD132bn in the longer term.

Not everybody will be happy, however: the processing industry and agriculture will suffer.

“Processing, including engineering, will be affected by lower import rates due to the WTO ascendancy”, explains Senior Analyst at Deutsche Bank Russia Yaroslav Lisovolik, adding that the rates will be lowered gradually, therefore he expects no radical impact.

The transition period will be followed by a drastic decrease in import rates for pharmaceuticals and medical equipment. This does not mean lower prices, since “prices are affected by middlemen and absence of competition as well as rates”, says 2K Audit/Morrisson International expert Irina Vorobieva.

Rates will be cut for home appliances, and yet prices also depend on the cost of logistics, parts etc.

“Lower import rates will not mean lower prices in shops. Sad but true for the Russian consumer”, sums up Vorobieva.

“Russia will be deeply integrated in international trade, open global markets. Yet we do not see clear advantages for Russia in the WTO in the short-term”, adds Alexei Kozlov, Senior Analyst at Analytical and Risk Management Department, UFS Investment Company. “This move is more beneficial for other WTO members”.