LONDON, May 11 (Reuters) - Russia may be able to join the World Trade Organisation this year, Russia's first deputy prime minister Igor Shuvalov said on Tuesday, flagging progress in the decade-and-a-half old accession process. "It's tough, but it's possible," Shuvalov told a news briefing.
"Our meeting in Washington was favourable on both sides."
Russia has frequently predicted its imminent entry to the WTO but the process has repeatedly been held up by outstanding differences between Moscow and existing members.
Shuvalov said the status of Russian state-owned enterprises was one of the stumbling blocks to WTO accession.
Some countries such as the United States fear state-controlled companies could have an unfair advantage and would want guarantees in any accession deal.
Russia said last month it would pursue a separate bid to join the WTO, dropping its insistence on joining as a customs union with Belarus and Kazakhstan. [ID:nN26503194]
"We are talking with the Americans now. Our (customs union) partners understand that once Russia is there, it's going to be better for everyone, all the major principles of the single market will be based on WTO principles," Shuvalov said.
Shuvalov said plans to form a customs union with Belarus and Kazakhstan were going ahead, with the union to be in place by January 2012.
"The presidents want us to deliver by January 2012, it's not easy."
Currency union could follow customs union, he added.
"If we have all these (customs union) agreements in place by 2012, then the next stage for discussion is going to be the currency. The customs union needs to work perfectly -- if everything goes well, then maybe currency."
(Reporting by Carolyn Cohn; editing by Tony Austin)