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UPDATE 2-Georgia: Russian WTO membership requires border deal

Published 10/14/2010, 03:29 PM

* Georgia proposes common customs control with Russia

* Can block Russian WTO accession

* Russia says Georgian position absurd

(adds details, background, byline)

By Jonathan Lynn

GENEVA, Oct 14 (Reuters) - Russia must do a deal with Georgia over customs controls on their internationally recognised border if it is to pursue its goal of joining the World Trade Organization, Georgia's first deputy foreign minister, Giorgi Bokeria, said on Thursday.

Russia called Georgia's demands absurd.

Bokeria's comments suggested the August 2008 war between the two ex-Soviet states, resulting in two Georgian regions seceding with Moscow's recognition, continued to dog relations and could impede Russia's 17-year-old bid to join the WTO.

But Bokeria repeated Georgian government assertions that they did not seek to block Russian WTO membership.

"In principle we are in favour of Russia joining the WTO -- anything which would bring Russia closer to a civilised community of the world," he said.

Russia's membership bid has recently picked up momentum, and Russian and U.S. officials have been working to resolve differences, although the United States says Moscow must do more to tackle piracy and counterfeiting of U.S. goods. [ID:nLDE6901IT] [ID:nLDE68K25C]

Russian vice minister for foreign affairs Grigory Karasin said Georgia's demands were absurd and failed to reflect changed realities in the region.

Georgia is already a member of the WTO, which umpires global trade, and under WTO consensus rules has an effective veto, like all 153 members, on Russia's accession bid.

Georgia argues that its customs posts are now deep in Russian-controlled territory, so that its own customs officials cannot control trade flows across its northern border.

Bokeria told a briefing that Georgia would not raise issues unrelated to trade when discussing Russia's application.

"One of the fundamental principles of the WTO is transparency of borders. Right now there is no transparency on the Georgia-Russia border," he told a briefing after a round of internationally sponsored talks between the two foes.

Georgia has proposed to Russia that the two states should operate joint customs controls along the internationally recognised border, he said. Other compromises involving international organisations were possible, he said.

Karasin, too, said compromises were needed over the issue, not least in Georgia.

"We are counting on right-mindedness winning out in Tbilisi and on their allies and sponsors explaining to them how unconstructive their position is," he told the briefing, speaking through an interpreter.

If the two sides genuinely wanted a practical solution rather than turning the question into a fundamental status question, one model could be the European Union's border assistance mission between Moldova and Ukraine.

Moldova is unable to control part of the border because the Russian-speaking region of Transdniestria, backed but not recognised by Moscow, has declared unilateral independence.

In contrast, Russia has given diplomatic recognition to Georgia's breakaway regions of Abkhazia and South Ossetia and promised to help prevent Georgian attempts to regain them by force.

(Reporting by Jonathan Lynn; Editing by Ralph Boulton)

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