Russia 'forced' to apply costly EU chemical standards

(MOSCOW) - Russia will be "forced" to apply EU safety standards in the chemical industry, which will cost Russian companies up to 10 percent of their export earnings, Russian officials said on Monday.

The Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), a European Union regulation which greatly tightens standards for the chemical industry, came into force this year.

"If one of our main strategic economic partners uniting 27 countries introduces such strict legislation, then Russia will be forced to apply these requirements," the Russian energy and industry ministry said in a statement.

The statement said that conforming to the new rules would cost Russian companies tens of thousands of euros for each chemical product, taking up to 10 percent of earnings.

The announcement came after trade talks in Moscow between Russian Energy and Industry Minister Viktor Khristenko and European Commission Vice-President Gunther Verheugen.

Adopting REACH standards "is extremely important because it concerns a huge number of industries. We need joint initiatives in order to avoid future conflicts and to cooperate," Khristenko said after the talks.

Verheugen said he was "very glad" that Russia would enforce new standards.

Russia is the European Union's third-largest trading partner and is a major centre for global chemicals production. The European Union is by far Russia's largest export market.