The Federation Council voted overwhelmingly in favour of joining the World Trade Organisation (WTO), bringing Russia to the verge of finally joining the organisation after 18 years of often acrimonious negotiations.
The upper house approved the bill with 144 votes in favour and three votes against and no abstentions, following its passing by the State Duma lower house last week. The accession will become Russian law 30 days after Putin signs the measure.
The reduction of customs tariffs is a key condition for Russia's WTO membership and will fall from a current average level of 9.5% to 7.4% in 2013, 6.9% in 2014 and 6% in 2015.
According to the World Bank, WTO entry is worth 3.3% of Russian GDP or US$49 billion in the first three years after entry. Over 10 years, the gain will be worth 11% of GDP, it says.
Russia's journey to joining the WTO started back in 1993 but was marked by frequent rows with Western partners, objections by its foes and not least a sometimes lukewarm attitude on the part of the Russian leadership.
But Putin is now openly championing modernisation of the Russian economy to wean the country off dependence on oil and gas exports and officials have warned progress is not possible without WTO membership.