Monday, May 15, 1995

 

Vol. 31, No. 19, ISSN: 0511-4187

 

Joint statement on economic reform, trade, and investment.

 

 

� The President of the United States of America and the President of the

Russian Federation welcomed the significant progress made in Russian

economic reforms and bilateral trade and investment since their last

meeting in Washington in September 1994. They underlined their support

for full and early realization of the bilateral economic partnership

described in their September 1994 Washington Summit joint Statement on

"Partnership for Economic Progress."

 

 

� Economic Reform

 

 

� The President of the Russian Federation reaffirmed Russia's

determination to implement firmly its 1995 economic reform program,

including reduction of government deficits and other anti-inflationary

measures, privatization, comprehensive tax reform, strengthening of the

free market and integration into the world economy. The President of

the United States of America welcomed these policies and pledged

continued strong U.S. support for their complete implementation.

 

 

� The President of the United States of America and the President of

the Russian Federation commended the deepening interaction between

Russia and the leading industrial countries and the formation of the

"Political," and expressed their hope for fruitful cooperation during

the forthcoming Halifax Summit in June 1995.

 

 

� Trade

 

 

� The President of the United States of America expressed strong U.S.

support for Russian accession to the World Trade Organization (WTO),

and both Presidents agreed to cooperate on accomplishing this

objective.

 

 

� The President of the United States of America and the President of

the Russian Federation welcomed the doubling of bilateral trade between

1992 and 1994 to a level of $5.8 billion. They pledged that as trade

continues to expand both countries would work together to resolve trade

frictions when arise in a mature trade relationship. They also agreed

that bilateral trade and foreign and domestic investment would benefit

from stricter enforcement of intellectual property rights and they

agreed that both governments would engage in broader cooperation in

this area. The President of the United States of America reiterated his

government's recognition that Russia is an economy in transition to a

free market.

 

 

� Investment

 

 

� The President of the Russian Federation informed the President of the

United States of America that his government has issued a decree

permitting full implementation of the Oil and Gas Framework Agreement,

under which the U.S. Export-import Bank can proceed with $1.3 billion

in approved loans and authorize $700 million in requested loans for the

important oil and gas sector. The two Presidents also undertook to

accelerate implementation of the $750 million Eximbank-Gazprom

financing facility.

 

 

� The President of the Russian Federation noted the importance of the

IL-96M project to civil aviation cooperation between the two countries

and the President of the United States of America confirmed that the

U.S. Export-import Bank is reviewing a financing application for this

project.

 

 

� The two Presidents welcomed progress made in negotiations between

American and Russian companies on production sharing agreements and

look forward to the signing of these agreements within the next few

months, as well as the passage of the Law on Production Sharing and the

ratification of the Bilateral Investment Treaty.

 

 

� The President of the United States of America and the President of

the Russian Federation welcomed the commitments of the Overseas Private

Investment Corporation of over $2 billion in loan guarantees, insurance

and investment funds, and of the U.S. Trade and Development Agency of

over $35 million for feasibility studies on 87 separate projects in the

Russian Federation. They looked forward to the opening in Moscow in

June of a new Russian Business Information Service for trade with

America, with assistance from the U.S. Government.

 

 

� Future Mandate

 

 

� The President of the United States of America and the President of

the Russian Federation commended the achievementsof the Joint

Commission for Technological and Economic Cooperation (the

Gore-Chernomyrdin Commission) and, stressing their commitment to a

strategic economic partnership, requested recommendations from the

joint Commission on further moves to strengthen and expand bilateral

trade and investment and market access, and cooperation in the areas of

energy, space, science and technology, health and agriculture and

conversion of defense production facilities.

 

 

� Noting the importance of regional development, the two Presidents

announced the inaugural meeting in Seattle this June of the working

group between the private and public sector leaders of the Russian Far

East and the U.S. west coast, based on the initiative of the President

of the Russian Federation in Seattle in September 1994.

 

 

� The President of the United States of America and the President of

the Russian Federation noted that a strong basis for economic,

commercial and technological cooperation between the two countries has

been created, which is aimed at supporting the Transformation of the

Russian economy and Russia's full integration into the world economy.

The two Presidents expressed strong support for these historic goals.

 

 

� NOTE: An original was not available for verification of the content

of this joint statement.