In an effort to curry favor in its bid to enter the World Trade Organization (WTO), Russian authorities have moved to shutdown the music downloading site Allofmp3.com.

The controversial site sold music in non-protected audio formats for highly discounted rates, with songs going for only a few cents and albums costing around $2, significantly less than iTunes.com. MediaServices, the company that ran the website, paid fees to a licensing organization, the Russian Multimedia and Internet Society, and claims its services are legal under Russian law.

However, music companies refused to accept payments from MediaServices, arguing that the Russian Multimedia and Internet Society did not have the authority to represent their interests.

The website had been under investigation for two years by the Russian Interior Ministry and last week authorities issued a court order to end relations with MediaServices and its Internet service provider, Master Host.

Customers who went to the website found that it would not load, while the Russian version was closed “for maintenance.”

The site was a point of conflict with the WTO members like the U.S. who claimed Allofmp3.com violated intellectual property rites. It has attracted lawsuits from both U.S. and UK record companies, though the website did urge customers to respect downloading laws. In January, credit card companies Visa and MasterCard said they would no longer process payments from Allofmp3.com.

During negotiations last year, Susan Schwab, the U.S. Trade Representative, indicated that the site would have to be closed before Russia could enter the trade body during talks.

Moscow promised to close the website under an agreement signed between Ambassador Schwab and German Gref, the Russian Minister of Trade and Economic Development, in October 2006.

In a statement to the media, Gretchen Hamel, a spokeswoman for the U.S. Trade Representative said, “This action follows months and years of the U.S. government, Congress and industry urging Russia to step up its protection of intellectual property.”

The victory may be pyrrhic as MediaService operates two other sites, Mp3sparks.com and Alltunes.com, which provide a near identical service. The company began ushering its customers away from Allofmp3.com to these sites months ago.

The closure then came as Russian President Vladimir Putin and President George W. Bush were holding talks in Kennebunkport, Maine. Relations between the two countries have soured of late over difference about the U.S.’s proposed missile defense system, which would have bases in the Czech Republic and Poland, Russia’s traditional sphere of influence.

Though the closing of Allofmp3.com is a win for the music companies, analysts have little doubt that it will not end illegal music downloading as “copy cat” sites will quickly rise to fill the space.