European Commission head Jose Manuel Barroso has said the European Union would consider a free-trade agreement with Russia after Russia's accession to the World Trade Organization. Negotiations could take place next year, after the expiration of the Partnership and Cooperation Agreement. Europe is offering Russia this latest carrot in the hope of spurring the "honest and open development of an energy partnership." Russia's problem is figuring out whether the carrot is worth it.

A free-trade zone presupposes the liberalization of the terms of trade. For Russia, Europe's third-largest trading partner at 163 million euros ($209 billion) per year, the liberalization of tariffs would help exports. On the other hand, Europeans will want access to Russian oil and gas fields and pipelines.