Russia's coveted entry into the World Trade Organisation could be jeopardised by Western concern over a music website accused of widespread copyright infringement, it has emerged.

AllofMP3.com, based in Russia, is regarded by many as the scourge of the global music industry for selling music at a fraction of the cost of its American and European rivals. Earlier today, the site was offering The Scissor Sisters' best-selling I Don't Feel Like Dancin' for 20 cents (11p), while it cost 99 cents (53p) to download from Apple's iTunes digital store or £1.99 to purchase in hard copy from HMV.

The US Government has insisted that Russia take action against the site as part of its WTO membership talks, a trade representative told an industry body this week.

"We have made clear to Russia that improved protection for intellectual property is critical to its joining the WTO and we have specifically raised our concerns with AllofMP3.com," Karan Bhatia told the National Academy of Recording Arts and Sciences.

But Russia has refused to budge.

Piracy was one of several key issues in negotiations this week with both the US and Russia adopting tough bargaining positions. Igor Shuvalov, an adviser to Russian President Vladimir Putin, said it might be time to suspend the talks because Russia could not make further concessions, raising the prospect that the discussions may drag into next year.

Russia, the largest country outside of the WTO, has been trying to join the 149-nation group that sets the rules for world trade since 1994. The US is the last major country still to give its approval.

Officials from the two countries will meet in Geneva next week for further talks.

AllofMP3.com, which claims to be "in complete compliance with Russian law" hit back at Mr Bhatia’s comments, saying it was irresponsible to use the site as a negotiating instrument to extract concessions from Russia in the WTO talks.

Media Services, the site's owners, claim that a loophole in Russian copyright law allows it to sell tracks cheaply because it pays licence fees to Russian agencies.

But the site, Britain’s second most popular for music downloads according to a recent survey, has also come under attack from the industry in the UK. The British Phonographic Industry, which says that record companies have not granted the site permission to sell music, has threatened to sue the parent company.

Alice Gould, a partner at Wedlake Bell, warned that British users of the site could also face legal action.

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