The United States and Russia are poised to sign a deal on the eve of the Group of Eight summit paving the way for Russia to join the World Trade Organisation (WTO), officials, diplomats and media said yesterday.

The White House played up hopes that Russia’s decade-old bid to join the WTO could clear the last major hurdle when presidents George W. Bush and Vladimir Putin meet on the eve of the G8 summit in St Petersburg, which opens on Saturday.

Russia’s Itar-Tass news agency quoted Bush as telling foreign correspondents he had sent a letter to Putin setting out the U.S. position.

“There is no lack of clarity about what should happen on the market access issue, from both sides’ point of view,” Bush said. “I hope that we’ll sort it out. I’m an optimist on this.” Bush added when asked about possible remaining hurdles.

A western diplomat said: “The technicians have done everything now on the deal. It is now fundamentally a political and strategic decision.”

“I hope that we will manage to successfully conclude talks with the Americans before the start of the summit,” said Russia’s Deputy Prime Minister Alexander Zhukov .

Other diplomatic sources in Moscow said a deal could also create momentum by a last attempt to save the Doha round of global free trade talks from collapse.

Russia’s Economy and Trade Ministry, leading the WTO entry talks effort, had no immediate comment. But a government source said more negotiations could be held in Moscow later this week.

Russian business daily Kommersant said the WTO talks had reached a compromise, with the Americans withdrawing demands that foreign banks should be able to open branches in Russia and that Russia should counter intellectual property abuses immediately rather than gradually.

For its part, Russia would agree to open up its insurance market over seven years and agree to cut agricultural subsidies, which the paper said amounted to $9.2 billion annually.

A U.S. deal is the last major hurdle to Russian entry into the WTO. Russia, chairing the G8 for the first time, is the largest economy outside the 149-member free trade club.

This could move the Doha round forward, although there was no sign that a formal meeting of the so-called G6 trade forum – which comprises the United States, the European Union, Brazil, India, Japan and Australia – would be held.