DAVOS, Switzerland. Feb 1: Russia and the European Union could set up a free trade area in the future, to the mutual advantage of both. Russian Prime Minister Viktor Chernomyrdin said here yesterday, reports AFP.

"Russia could become an area of free trade between Russia and the EU. on the principles of equality and mutual advantage. "Chernomyrdin told the world economic forum annual meeting here.

He stressed that Russia is now firmly entrenched in the "mainstream trends of the political development of the world." and there is "no need to create new economic models'" or seek new economic systems.

Russia needs more access to external markets. Chernomyrdin said. "That is why acceding to the world trade organisation and the Organisation for Economic Cooperation and Development are important, We have every reason to hope to do so."

Chernomyrdin stressed the turnaround in the Russian economy last year, when It achieved economic growth for the first time In several years, but said that planned tax reforms must be approved by the Duma if the reform effort is to be successful.

"We would like to be more successful in reorganising our taxes and we are not happy at

all with the state of major structural reforms" because they are not moving ahead fast enough. Chernomyrdin said.

But changes are becoming "deeper and broader." and for 1996 "all efforts are concentrated on removing barriers to economic growth." Chernomyrdin said.