Vice President Joe Biden: Keeping the "Reset" Momentum - An Insider Perspective on International Business in Russia
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Th Sp
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up g :
Volume 17, Number 92 tio ain
n st
An Insider Perspective on International Business in Russia
Vice President Joe Biden:
Keeping the “Reset” Momentum
AMCHAM NEWS ISSUE 92 3
Contents
PRESIDENT’S LETTER: AmCham’s Role
in Russian Accession to WTO 5
AmCham Policy Event Highlights: Winter 2010-2011 8
AmCham 11th Annual Investment Conference 12 05
U.S. Vice President Joe Biden: “Building on the Reset” 14
Country Assessment: Russia 19
Overall Assessment of the Russian Economy 22
Investment in Key Industries:
The Russian Government’s Priorities 26
FAQ: A Guide for the Registration of Foreign Citizens 30 Special Report:
U.S. Ambassador to Russia John Beyrle
Speaks Out Against Corruption 33 The Fight
An Interview with Elena Panfilova,
Director of Transparency International Russia 35
Against
Building Islands of Integrity: Corruption 32 57
Companies’ Individual and Collective Approaches
to Minimizing the Risk of Corruption 38
A Note of Caution: Compliance with the U.S.
Foreign Corrupt Practices Act Does Not Equal
U.K. Bribery Act Compliance 40
Ethical Business Culture Gets Codified 42
Moscow Moving Forward: Challenges
and Opportunities 44
Costs Incurred in Development of Investment
Property: Advantages and Difficulties
in Application of the Fair Value Model 45
Pre-Due Diligence Pointers for Real Estate Investors: 14
Navigating Through the Russian Public Records 48
Overview: The Hospitality Market 2011, 1st Quarter 52
Letter from the Tatarstan President,
Rustam Minnikhanov: The 2013 World Summer
Universiade in Kazan 56
General Information About the Republic of Tatarstan 57
AmCham Annual Holiday Party 2010 60
AmCham Business Before and After Hours 61
Committee Briefs 63
Off-the-Wire 65
Welcome Aboard 67 62
AMCHAM NEWS ISSUE 92 PRESIDENT’S LETTER 5
AmCham’s Role
in Russian Accession to WTO
By Andrew B. Somers, President and CEO, the American Chamber of Commerce in Russia
R
USSIA’S ACCESSION accession, as reflected in his De-
to the World Trade cember 9, 2010, comments to the
Organization (WTO) has President’s Export Council, which
been a key objective for the Ameri- consists of business, labor, Congres-
can Chamber of Commerce in sional and Administrative leaders:
Russia during the last several years, “I believe that Russia belongs in the
and 2011 has witnessed unprec- WTO and that we should support all
edented determination on the parts efforts to make that happen.”
of policymakers in Washington and
Moscow to make this happen in The U.S. Congress, however, has a
the coming months. To ensure con- significant indirect role in Russia’s
tinued momentum – and finally, accession to WTO. Under WTO
closure – AmCham has initiated rules, every WTO member must
monthly visits to Washington to grant all other WTO members
speak with Congressmen and lead- Permanent Normal Trade Rela-
ing decision-makers to help move tions (PNTR). Currently the U.S.
the process along. grants Russia temporary Normal
Trade Relations on an annual
basis, due to a 1976 amendment Despite the strong business case Russia is outstanding, and second,
What Stands in the Way to the Defense Act, known as the for granting Russia PNTR and the that American investment in the
of PNTR and WTO Jackson-Vanik Amendment. This fact that Russia’s free emigration Russian market supports U.S. jobs
Accession law – originally enacted to support policy complies with the original and U.S. exports and is crucial to
The benefits of WTO accession emigration from the Soviet Union objectives of Jackson-Vanik, we maintaining the competitiveness of
for our membership, and for U.S. for prisoners of conscience and expect a significant upcoming the U.S. economy.
companies generally, will include victims of religious persecution – debate in Congress. This will
a reduction in, or the phasing out requires the President to certify arise from negative perceptions Our initial delegation comprised
of, those Russian import tariffs to Congress every year that Russia of Russia’s foreign policy and the heads of Russian operations
or quotas that currently exceed permits free emigration of its citi- internal political structure, as for John Deere, Chevron, Amsted
WTO standards and a ceiling on zens. Accordingly, Congress then well as a lack of knowledge about Rail, and Deloitte. During our
tariff rates that currently meet grants Russia another year of Nor- the magnitude of success by, and visit, we met with the following
WTO requirements. The effect mal Trade Relations. If Jackson- opportunities for, American busi- Congressmen:
should be improved access and Vanik remains applicable to Russia nesses in Russia.
competitiveness for many of our after Russia accedes to WTO, • Kevin Brady, Chair of the Trade
companies’ products on the Rus- the U.S. would be in violation of Subcommittee of the House
sian market. Russia’s accession to WTO rules, and as a consequence, AmCham Strategy: Ways and Means Committee,
WTO will also bring the only major U.S. companies would be denied Monthly Visits the key House unit for PNTR
economy not yet in the WTO into the full enjoyment of Russia’s to Washington
this rules-based international trade improved market access and tariff AmCham recently initiated the im- • Dan Burton, Chair of the
organization, which should also reductions. Our companies would plementation of its strategy to per- Europe Subcommittee of the
have a positive impact on foreign be at a competitive disadvantage suade the U.S. Congress to grant to House International Relations
perception of Russia as an invest- with respect to the products of Russia PNTR status. Our strategy Committee
ment market. other WTO members. For this involves organizing monthly visits
reason, the Administration and the to Washington of small delegations • Congressmen Denis Kucinich
Under U.S. law, the President has great majority of American busi- of member company CEOs of Rus- and Dana Rohrabacher, both
the exclusive authority to ap- nesses operating in Russia support sian operations to deliver a two-fold members of the Congres-
prove Russia’s accession to WTO. the withdrawal of Jackson-Vanik’s message. The first is that the per- sional “Russia Caucus” led by
President Obama supports Russia’s applicability to Russia. formance of American business in Mr. Kucinich
6 AMCHAM NEWS ISSUE 92
Left to
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• Senator John Thune, member As we expect Congress to vote on our message will also specifically • Giving us the contacts of U.S.
of the Senate Finance Commit- PNTR in the fall, it would be very be honed to a particular concern Congressmen in districts posi-
tee, the key Senate PNTR unit timely and supportive if the heads of of a Congressman’s respective tively affected by your company’s
Russian operations of American com- committee and/or district. Russian operations*
• Senator James Risch, member panies would write to those members
of the Committee on Energy and of Congress in the Senate and the Similar visits will take place in This information will be of great
Natural Resources, the Select House of Representatives who repre- June, July, September, and Octo- value to us as we meet with Con-
Committee on Intelligence, the sent the state and towns where your ber. I encourage our members to gressmen and as we print handout
Committee on Small Business company has substantial production take an active part in our effort by: literature for each trip.
and Entrepreneurship, the Com- facilities or a large labor force, urging
mittee on Foreign Relations, and that Congress vote PNTR for Russia. • Supplying specific statistics AmCham will continue to keep you
the Select Committee on Ethics regarding the amount of jobs updated on WTO and PNTR progress
Our next visit is scheduled for created or sustained in the U.S. as it unfolds. Political currents can
We also met with Michael McFaul, early May, and our delegation will by your company’s Russian change quickly, as we know, but the
President Barack Obama’s top comprise the Russian operations’ operations speed with which progress is now being
advisor on Russia, who strongly CEOs of Procter & Gamble, Dow, made is encouraging. In the mean-
endorses our strategy, and Mimi Abbot Laboratories, and Estee • Supplying information about time, I will also keep you updated
Alemayehou, Executive Vice Lauder. We will meet with addi- how your company’s opera- through regular briefings and reports
President of the Overseas Private tional Congressional leaders to de- tions in Russia help it to remain following our visits to Washington, as
Investment Corporation (OPIC). liver our message. And as always, globally competitive well as letters to our membership. ■
*
Please send this information to Guy Archer at garcher@amcham.ru.
AMCHAM NEWS ISSUE 92 7
President and CEO Andrew B. Somers
AMCHAM BOARD OF DIRECTORS
Chairman Ronald Pollett, GE
Lena Alexandrova, United Technologies Patricia Lopez de Perez-Ayala, Procter & Gamble
James Bovenzi, General Motors CIS Richard Munn, PricewaterhouseCoopers
Alex Chmelev, Baker & McKenzie Peter B. Necarsulmer, PBN Company
Darrell Cordry, Chevron David J. Pearson, Deloitte
Robert Courtney, US Dental Care Nikolay Pryanishnikov, Microsoft Rus LLC
Jean-Luc Duramy, DuPont Science and Technologies Sergei Riabokobylko, C&W Stiles & Riabokobylko
Alex Geller, A.M.G. Group Richard Sobel, Alfa Capital Partners
Jonathan Hines, Dewey & LeBoeuf LLP Yermolai Solzhenitsyn, McKinsey & Company
Christian Holmer, Pfizer International LLC Leonid Tarasov, Delta Airlines
Alexander Ivlev, Ernst & Young Zdenek Turek, Citi Russia
Jonathan Knaus, Western Union
Dmitri Konash, Intel Technologies Inc John McCaslin, U.S. Commercial Service,
Sergey Kravchenko, Boeing U.S. Embassy (ex officio)
David C. Larson, John Deere Matthias Mitman, Economic Affairs Section
Ron Lewin, TerraLink Technologies (ex officio)
AMCHAM ST. PETERSBURG EXECUTIVE COMMITTEE
Ruslan Belyaev, Citigroup; Maxim Kalinin, Baker & McKenzie; Natalia Sherbakova, PricewaterhouseCoopers; Heinrich Fiedler, Johnson Controls;
Igor Kaloshin, Intel; Andrey Korzhakov, Foxconn; Vyacheslav Nesterov, EMC; Julia Nikitina, Boyden; Steven Wayne, Jensen Group; Sheila Gwaltney,
U.S. Consul General in St. Petersburg (ex officio and Honorary Chair); Maria Chernobrovkina, Executive Director, AmCham St. Petersburg (ex officio);
Kenneth Duckworth, U.S. Principal Commercial Officer (ex officio)
AMCHAM MOSCOW HEADQUARTERS STAFF
Tatiana Raguzina, Executive Vice President; Guy Archer, Communications Director, Editor-in-chief; Olga Avraamova, Coordinator/Migration Issues;
David Birney, Director, Committee Affairs, IT Communications & Marketing; Elena Boldina, Accountant; Julia Butorina, Office Secretary; Irina Doronina,
Director of Operations; Anastasia Dourygina, Chief Accountant, Non-Commercial Entity; Ksenia Forsheneva, Membership Development Manager;
Timur Gafurov, Director, Government Relations; Ekaterina Gerasimova, Senior Director, Finance; Svetlana Kubrakova, Administrative Assistant to the
President & CEO; Milena Kuzmina, Event Manager; Kristina Romanovskaya, Executive Assistant to the President & CEO; Maria Sirotina, Office Secretary;
Tatiana Svistunova, CRM Manager, Acting Office Manager; Evgenia Voit, Chief Accountant, Commercial Entity
AMCHAM ST. PETERSBURG STAFF
Maria Chernobrovkina, Executive Director; Alla Doroshenko, Administrative Assistant; Irina Makarenkova, Events & Operations Manager;
Elena Mishkiniuk, Marketing & Membership Communications Manager
U.S. REPRESENTATIVE
Ambassador Gilbert Robinson, U.S. Communications Advisor
Published by AmCham Information Services, Inc. Printed by Presse-Papiers
AmCham News is registered with RosKomPechat, Design by Lyudmila Turovtseva
Certificate No. 018210 of October 21, 1998 Editor-in-Chief: Guy Archer
Circulation: 7,000, distributed free of charge Assistant: Elizabeth Bagot
Volume 17, Number 92, 2011 Photos: Alexander Antonov, David Birney,
Aleksei Bessaly, Anton Butsenko, Kirill Skrebnev,
Address: Dolgorukovskaya Ul. 7, 14th Floor, Moscow 127006, Russia Alexander Zabrin
Tel: +7 (495) 961-2141; Fax: +7 (495) 961-2142
E-mail: info@amcham.ru
Website: www.amcham.ru Artwork kindly provided by NB Gallery,
6/2 Sivtsev Vrazhek, Entrance 1, Suite 2
tel: +7 495 697-4006, 737-5298
The opinions expressed by the authors do not necessarily e-mail: nbgallery@online.ru
reflect the views of the Chamber. www.nbgallery.com
The American Chamber of Commerce (AmCham) is the largest foreign business organization operating in Russia. Founded in 1994, AmCham advocates
the trade and investment interests of more than 800 members, which include major U.S. Corporations, as well as large European and Russian compa-
nies. The Chamber advances commercial relations between the Russian Federation and the international community by promoting an investment-friend-
ly environment. In so doing, the Chamber maintains a constant dialogue with the Russian government to protect and promote the economic interests of
member companies.
AmCham welcomes membership applications from American, Russian, and international firms.
To find out how to join, please contact Ksenia Forsheneva at +7 (495) 961-2141, or kforsheneva@amcham.ru.
8 POLICY EVENTS AMCHAM NEWS ISSUE 92
AmCham Policy Event Highlights:
Winter 2010-2011
AmCham at State Duma students, all participants in the Financial Center Strategy held a meeting with Baltic Customs
Roundtable on Customs U.S. Library of Congress’s Open Conference head, Maj. Gen. Alexander N.
Union World program, about the Russian On December 2, AmCham took Chebayev, and AmCham members.
On November 11, AmCham par- business climate, as well as growing part in a conference on strategies
ticipated in a roundtable discussion areas for developing U.S.-Russian for turning Moscow into an inter- Meeting with Economic
between businesses and Russian cooperation. national financial center. Development Ministry
government representatives on the On the week of November 28,
latest developments regarding the Contract Labor Meeting AmCham met with the RF Deputy
Customs Union. The event was or- with Duma Chairman Minister of Economic Develop-
ganized by the State Duma’s Com- and Roundtable ment regarding localization and
mittee on Budget and Taxation. On November 29, AmCham met its possible negative impact on
with RF State Duma Chairman of electronics-industry AmCham
AmCham Trade Mission the Labor Committee on contract members.
to Ryazan labor and staffing issues. AmCham
On November 11, AmCham hosted will review current draft legislation AmCham in the U.S.
a trade mission to Ryazan, which regarding these issues to make rec- On the week of December 5,
included a roundtable meeting with ommendations. On December 2, Andrew Somers was in the United
Oleg Kovalyov, Governor of Ryazan AmCham held a policy roundtable States for a series of meetings with
Oblast, and key government of- on contract labor, discussing the U.S. business leaders and State
ficials; a roundtable meeting with preceding meeting with the State Department, National Security
the Ryazan Chamber of Commerce Duma Chairman, strategizing for Council, and other government of-
and industry representatives from the near-term, and outlining the ficials to discuss Russia’s accession
the local business community; and recommendations that the Cham- to the World Trade Organization
a visit to the Guardian Steklo plant. ber will make concerning the draft and PNTR issues.
legislation. AmCham Regional
General Managers Briefing with Tatarstan
Breakfast High-level Skolkovo President
On November 12, AmCham hosted Briefing On December 3, Andrew Somers
an AmCham General Managers On November 30, AmCham held chaired an AmCham regional brief-
Breakfast Roundtable. a high-level speaker briefing with ing with a delegation of govern-
RF State Duma Deputy, Ilya ment officials from the Republic
Energy Efficiency Ponomarev, who leads the State of Tatarstan, headed by Tatarstan’s
Meeting Duma High-Tech Development President, Rustam Minnikhanov.
On November 16, Andrew Somers, Subcommittee and serves as advisor The briefing included a presenta-
together with a representative of the to the President of the Skolkovo tion on Universiade Kazan 2013
Russian Ministry of Energy and the Foundation. and presentations by the heads
U.S. Ambassador to Russia, John of international and Russian
Beyrle, gave the opening comments Joint-venture Signing companies operating in the region,
at a Moscow conference on financ- in Siberia including Tatneftekhiminvest-hold-
ing energy-efficiency projects for the On December 1, Andrew Somers ing, Honeywell, Mercedes-Benz
Energy-Efficiency Subgroup of the was in Kagalym, Siberia, to par- Trucks Vostok, Wienerberger Inves-
U.S.-Russia Energy Working Group. ticipate in a joint-venture signing titions- und Projektmanagement,
between Nalco and LUKOIL to and PricewaterhouseCoopers. EBRD Presents Transition
Visiting Delegation of upgrade energy efficiency in that Report
U.S. Students area. The event was also attended AmCham Meets with On December 7, Erik Berglöf,
On November 17, Andrew Somers by LUKOIL President, Vagit Baltic Customs Head Chief Economist with the Europe-
spoke with a visiting delegation Alekperov, and Nalco Chairman, On December 3, the AmCham an Bank for Reconstruction & De-
of U.S. college and university President, and CEO, Erik Fyrwald. Regional Office in St. Petersburg velopment (EBRD), presented theAVENIR GROUP SERVICES:
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www.avenir-marketing.com www.avenir-itsolutions.com10 POLICY EVENTS AMCHAM NEWS ISSUE 92
Boris Domashnikov
“Moscow. In the Construction Yard,” 1959
Early-Bird Networking
Event
On February 2, as part of its Early-
Bird Networking series, AmCham
hosted an informal discussion with
Andrew Somers, which focused on
his recent meetings with Russian,
U.S. and international policy-
makers and business leaders during
the World Economic Forum in
Davos, Switzerland, as well as key
AmCham-member business issues.
Roundtable on Reform
of Russian Public
Procurement System
Andrew Somers co-moderated a
roundtable discussion on February
3 entitled, “Reform of the Russian
Public Procurement System: The
Transition to Electronic Auctions
and the Participation of Foreign
Suppliers in Electronic Auctions,”
in which guests discussed how elec-
tronic auctions can be effective in
preventing corruption. Participants
included representatives of the RF
EBRD’s 2010 Transition Report to AmCham’s customs-court and Review 2010-2011,” to discuss Federal Antimonopoly Service
AmCham members and discussed small-business initiatives. major changes to the legislation and (FAS) (including Andrey Tsariko-
the EBRD’s recommendations for legal practices in Russia in 2010, vsky, Secretary of State and Deputy
Russia to achieve stronger, more Healthy Lifestyle Initiative and trends for 2011. Head, FAS), the RF Ministry of
sustainable growth. Please see an On December 15, AmCham held Economic Development, the As-
excerpt of the report in this issue of a policy brainstorming session re- AmCham Strategy Memo sociation of Electronic Auction
AmCham News. garding healthcare. Under the um- On January 28, AmCham issued a Providers, and electronic auction
brella of the AmCham Healthcare memo to its membership outlin- providers.
St. Petersburg Committee advocacy of developing ing its initial strategy for 2011
Tax Seminar a patient-centric culture in Rus- to support Russian accession to AmCham Meetings
On December 9, the AmCham St. sia, the session explored possible WTO, PNTR, and the abrogation with FMS
Petersburg Regional office held its AmCham initiatives to support the of Jackson-Vanik’s applicability to After a meeting with the Head
Annual Tax Seminar, with a key- development of a healthy-lifestyle Russia. of the Federal Migration Service
note address by Eduard Batanov, culture in Russia to decrease mor- (FMS) on February 4, the FMS
St. Petersburg Finance Committee bidity and mortality rates. AmCham at Davos agreed to resume arrangements
Chair. On the week of January 23, with AmCham for members to
National Payment System AmCham participated in a CEO submit their work permit applica-
AmCham Working Group Meets roundtable at the World Economic tions to AmCham for expedited
in Washington, D.C. On January 17, AmCham convened Forum in Davos, Switzerland, with delivery and processing by FMS for
On the week of December 12, another meeting of its working RF First Deputy Prime Minister highly-qualified specialists residing
AmCham’s Senior Vice President group to review a draft law on a Igor Shuvalov and organized by anywhere in Russia. AmCham will
for Policy, Government Rela- national payment system and to the Foreign Investment Advi- forward documents for highly-
tions, and Membership, Tatiana prepare recommendations to the sory Council (FIAC). AmCham qualified specialists to the FMS on
Raguzina, was in Washington, D.C. Duma regarding the legislation. also took part in additional side Tuesdays. The FMS also agreed
to participate in a meeting of the meetings with CEOs and Russian to review the possibility of issuing
PNTR Coalition at the office of Legal Practice Review and U.S. government officials on guidelines permitting expats to
the U.S.-Russia Business Council, in St. Petersburg a range of issues. On Wednesday, continue registration through their
where chief U.S. negotiator Chris- On January 25, the AmCham February 2, AmCham’s President companies as an option to the
topher Wilson addressed the Coali- Regional Office in St. Petersburg and CEO, Andrew Somers, dis- new legal requirement – effective
tion. During the week, she also met held its annual seminar, entitled cussed the meetings and roundtable February 15 – that expats register
with government officials regarding “Legislation and Legal Practice in Davos with AmCham members. through their landlords.AMCHAM NEWS ISSUE 92 POLICY EVENTS 11
Vasiliy Orlov
“Evening on the Volga-river,” 1960s
impact on expats, which was under- concern of AmCham financial com- February 13 to discuss possible areas
stood and accepted by the FMS. panies about the Duma draft bill for cooperation between the U.S.
restricting the cross-border flow of and Russia, as well as commercial
On February 17, the Ministry of financial data, a meeting took place opportunities for U.S. companies in
Economic Development called for a on February 22 in the presidential the Russian market and current energy
meeting with AmCham, the Federal administration with AmCham, efficiency practices employed by U.S.
Migration Service (FMS), the Chair of the Russian Bank Association, the companies operating in Russia.
Duma Financial Market the State Duma Committee on Con- Duma Committee Chair on the Fi-
Committee Chairman stitutional Legislation, and other busi- nancial Market, and representatives
Addresses AmCham ness associations in order to discuss of the telecom sector, which has also
On February 9, Vladislav Reznik, the negative impact of new migration- expressed concern. The meeting was
Chairman of the State Duma Fi- registration procedures, in effect as chaired by the RF President’s aide,
nancial Market Committee, briefed of February 15, 2011. Following this Arkady Dvorkovich.
AmCham members on the national meeting, a draft law allowing foreign-
payment system and State Duma ers to be registered by their employers AmCham is continuing to work with
Financial Market Committee plans was submitted to the State Duma. American Express, MasterCard, Visa,
for 2011. and Western Union to draw up rec-
On March 11, the State Duma ommendations for a more open and
AmCham Successfully Works with passed an amendment easing expat competitive market than is reflected in
FMS and Other Government Offi- registration rules and returning the current draft national payment system
cials to Resolve Migration Registra- responsibility for the registration of legislation. AmCham will meet again
tion Issue foreigners back to their employers with Mr. Dvorkovich in this regard.
as an option. Earlier in the week,
On February 11, the Federal Migra- AmCham met with Vladimir Pligin,
tion Service (FMS) confirmed the Chair of the Duma Committee on Leningrad Oblast
continuation of expat registration Constitutional Development, to Vice-Governor Speaks
through an employer company. support the new draft legislation, to AmCham
Originally, there had been concern and to discuss a new State Duma On February 18, Grigory Dvas, Len-
that on February 15, a federal-mi- amendment that will increase ad- ingrad Oblast’s Vice-Governor, spoke
gration procedure would take effect, ministrative penalties for violations to AmCham members in St. Peters-
restricting foreigners to register of technical regulations. burg, discussing the region’s economic
through their landlords, or person- development results and perspectives,
ally if they are property owners. Emergency Meeting of and answering audience questions.
National-Payment System
This concern has now been alleviated, Working Group Technical Fair, Industrial
following an agreement reached dur- AmCham’s national-payment system Congress & Partneriat
ing a meeting the week of February working group met on an emergency The annual St. Petersburg Technical
6 between AmCham President and basis on February 11 to develop a Fair, Industrial Congress & Partneriat
CEO, Andrew Somers, and Head of strategy to eliminate certain restric- was held March 15-17. The AmCham
the FMS, Konstantin Romodanovsky. tions on cross-border data transfers Regional St. Petersburg Office
At this meeting, AmCham secured that would negatively impact member AmCham Energy Efficien- supported the event and co-organized
confirmation of the current practice banks and banking associations. This cy Working Group Meets a number of meetings for the event.
whereby expat employees register provision was inserted into the Duma with U.S. Government The event featured a number of
through their company, as an option draft bill without notice. Official prominent business people and
to the new requirement. The AmCham Energy Efficiency government leaders, who discussed
In response to a letter from the working group met with Deputy modernization and investment in
During this constructive meeting, AmCham President to the RF Presi- Assistant Secretary of Commerce Russia’s regions, especially with
AmCham explained the negative dent’s Chief-of-Staff expressing the for Europe Juan Verde the week of regards to manufacturing. ■12 POLICY EVENTS AMCHAM NEWS ISSUE 92
T
he American Chamber of Commerce in Russia held its 11th Annual Corporate leaders then participated in two panel sessions focusing on
Investment Conference on March 10 at Lomonosov Moscow State Russia as an international financial center and strategies to raise Russia’s
University. During the opening session, AmCham President & competitive capacity. The conference concluded with a keynote address
CEO Andrew Somers discussed the successes and challenges of the Russian by U.S. Vice President Joe Biden entitled “Building on the Reset”
market; Deputy Mayor of Moscow for Economic Policy Andrey Sharonov (the full text can be found on page 27). His speech to AmCham was
outlined strategies for Moscow development in 2011 and beyond; and Presi- heralded as the “signature event of his five-day trip abroad,” during which
dent of the Russian-American Business Council David Iakobachvili spoke he visited Finland, Russia, and Moldova. ■
on Russian-American Strategic Economic Partnerships.
Opening Session Speakers:
And
Andrew
nd
drrew
re
ew So
ew Somer
mers,
mer
rs Pre
Presi
Pr sident
sid
dent
ent & CEO
CEO
CEO,
O, AmCh
Cham
Ch
ham
m
And
An rey S
Sharo
a no
nov
o , Deputyy Mayor off M
Mos
osco
o ow
David
Dav id Iak
Iakobachvvili
l , Pres
Pres
eside
es ident,
id
ident, Joe Bi
Biden
den,, Vice
Vice P
Presi
esiden
e t, the Unite
Unit d Stat
Statess of
o Ame
America
a
Russsia
si n-A
n-Amer
merica
ic n Busiinesesss Cou
uncil
uncilAMCHAM NEWS ISSUE 92 POLICY EVENTS 13
Panel Discussion: Russia as an International Financial Center
Joe
oerg
oe g Bon
ongar
on arrtz,
tz, C
Chairm
ai man of the Boa
air oar
ard, De
ar eutsche Ban
ank:
an Jefffre
f y R.
fr R. Cos
o ello, Managing
ost ng Dir
Dirrecttor, Presi
sident
si Mi ha
Mic
Mi hae
a l Drrey
eyer,
e Ch
C ief
i Informata ion
n Offiicer, Visa
a Inc
I .:
Moving
Mov ing in
i to a Woorl
r d of
of Multiple
M Financi
cial Ce
ci enters — Glob
obal
ob and
n SC
nd SCO, Ru
Rus
ussia,
sia
sia
a, JJP
P Morg
or an:: Maarke
rket Infrastrucctur
t e: The
hee Va
alue
lu
ue of El
ue Eleectronic Pay
a me
men
e ttss for Global
Exp
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THANK YOU SPONSORS:
Major Sponsors:
Ernst & Young
Goltsblat BLP
Telenor Group
Visa
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Vla
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Cooperation
p Nestle14 AMCHAM GUEST SPEAKER BRIEFING AMCHAM NEWS ISSUE 92
U.S. VICE PRESIDENT JOE BIDEN SPOKE AT AMCHAM’S ANNUAL INVESTMENT CONFERENCE
ON MARCH 11, 2011, AT MOSCOW STATE UNIVERSITY. THE FOLLOWING IS THE TEXT FROM
HIS SPEECH ENTITLED “BUILDING ON THE RESET“.
U.S. Vice President Joe Biden:
“Building on the Reset”
O
N MARCH 10, 2011, rule: You don’t have to wait any And, Rector, again, thank you for tions, and Zhukov’s and Gagarin’s
U.S. Vice President Joe longer than twenty minutes for a full hosting us here at Moscow State heroic feats. It is a rich and a noble
Biden gave the following professor. And for someone who is University, which has given Russia culture, and I’m delighted she has
speech as keynote speaker at the not a full professor, you need only and the world so many and such an had a chance to get just a little
American Chamber of Commerce in wait ten minutes. I’m honored you extraordinary array of graduates, glimpse of it.
Russia’s Annual Investment Confer- waited at all. I do apologize to the among them – if I’m not mistak-
ence at Moscow State University. business community, as well as the en – eight Nobel Laureates, includ- Let me also thank our Ambassador
students, for keeping you waiting. ing former President Gorbachev, John Beyrle and his team for hosting
Thank you, Andy [Somers, Am- who I have known for some time. me. As you businesspeople know,
Cham’s President and CEO]. Rec- I want to publicly as well thank Presi- there’s an old expression if you’re
tor [Victor Antonovich Sadovnichy, dent Medvedev and Prime Minister In addition to my wife, Jill, I in the military, but also if you’re in
Moscow State University], thank Putin for their hospitality. We had brought along my number two the diplomatic corps. “The good
you. It’s an honor to be here at very good meetings, very long meet- granddaughter. Her name is news is the commanding general is
Moscow State University, and I ings, and I hope, productive. Finnegan Biden. And I brought her coming. The bad news is the com-
want to thank AmCham for spon- along to Russia because I wanted manding general is coming”. On
soring this. And I want to thank AmCham her to see this great country with her the diplomatic side, the good news
Russia for sponsoring this event, own eyes; the country of Pushkin’s is the Vice President is coming, and
To the students that are here, I working to foster a modern business poetry and Tolstoy’s prose, the the bad news, the Vice President
apologize. In America, we have a climate after the fall of communism. country of Tchaikovsky’s composi- is coming, because I’ve created anAMCHAM NEWS ISSUE 92 AMCHAM GUEST SPEAKER BRIEFING 15
extraordinary amount of work for The President asked me to make that benefits of this approach to both tional Security Assistance Forces),
John’s incredible team. “reset” the focus of our administra- our countries are absolutely clear including American soldiers and ci-
tion’s first foreign policy speech that on issue after issue. vilians into Afghanistan. In addition
But John is one of the best America I delivered several weeks after our to rail cars rolling through Russia
has to offer. And anyone who doubts inauguration at the Munich Security Arms control: We signed and rati- with supplies, over 800 flights have
the ability of Americans and Rus- Conference. And I said then, and fied a New START Treaty, which carried nearly 120,000 passengers
sians to work together need only I quote, “the United States and will reduce our deployment of stra- over Russian territory to Afghani-
examine the history of John’s family. Russia can disagree and still – still – tegic weapons while ensuring that stan. That would have been thought
His father, Joseph, was a hero in work together where our interests we maintain stable and predictable impossible four years ago. And Rus-
both Russia and the United States, coincide. And they coincide in many verification. The two countries with sia is also providing badly needed
an American soldier taken prisoner places.” the largest nuclear arsenals showed military equipment and training
by the Nazis who went on later, the world that they are serious about to the Afghan National Security
when he escaped, to fight with the Now, we knew that pursuing this arms control and strengthening glo- Forces. We’re also cooperating on
Red Army on the Eastern Front. agenda would be hard work, that old bal nonproliferation. And that gave drug eradication.
And now, more than sixty-five years habits – as we say in America – old us even more credibility to deal with
later, his son is the American envoy habits die hard. That’s why President the most egregious violators of their European security: Using America’s
to Moscow. I think that’s a remark- Obama has met nearly a dozen times international commitments. improved relationship with Russia
able, remarkable story. with President Medvedev, and why as a model, we also reset relations
together we established a Bilateral Iran: With our partners in the so- between Russia and NATO during
And today, I also want to address the Presidential Commission with work- called P5 plus 1, we – Russia and last year’s Lisbon Summit, and a
state of U.S.-Russian relations. I ing groups on key issues like arms the United States – gave Tehran great deal of credit goes to President
don’t need to tell anyone in this audi- control and energy, broadening the a chance for meaningful dialogue Medvedev. And we identified missile
ence that our administration, when contacts between our two govern- based on mutual interests and mu- defense as a common project. I’ve
we took office in January of ‘09, our ments. tual respect to develop peaceful nu- talked extensively with your leaders
relationship with Russia had hit a clear means. They simply rejected on this issue. It will be difficult, but
fairly low point that had accumulated And in the spirit of what we call it. So Russia and the United States, it will be a game-changer if we can
over the previous eight years. in America a “dual-track engage- along with our partners on the U.N. get it done. It will say to the world,
ment”, we’ve also worked to deepen Security Council, adopted what the two largest superpowers in the
Yes, so we saw a war between Russia our ties between our countries’ is known as Resolution 1929, the world are mutually developing the
and Georgia played out, and played business leaders, including many of most extensive package of sanctions ability to have missile defenses,
a role in that decline. But even be- the distinguished men and women Iran has ever faced. And Moscow which I would argue would have
fore that conflict erupted in August in this room, as well as between our took another important step: It an extremely important impact on
of ‘08, a dangerous drift was under- civil society groups. canceled its contract to sell to Iran dissuading so many of the countries
way in this important relationship. S-300, air-defense missile systems, who are contemplating becoming
While we no longer considered each Our business and civil society sum- which was an unambiguous sign of nuclear powers from doing so.
other enemies, we couldn’t always mits, alongside our presidential sum- international resolve that Iran must
tell from the rhetoric that was flying mits in 2009 and 2010, were in my address the concerns that we have This year we’ll seek agreement on
back and forth across the continent. view very important in strengthening over their nuclear program. an ambitious work plan for coopera-
these relationships. We believed tion on this once contentious issue.
Ironically, this came at a time when then, and still believe, in focusing on North Korea: Working closely with And we’ll also pursue an agreement
American and Russian interests – on concrete outcomes that serve both Russia and our other international on negotiations to modernize and
nuclear arms control, nonprolifera- countries’ interests – as President partners on the threat posed by strengthen the Conventional Forces
tion, stabilizing Afghanistan, fighting Obama puts it, “win-win” situations. Pyongyang, we adopted another in Europe Treaty. I’ve been around
terrorism, opening global markets, U.N. resolution, referred to as a long time; the CFE Treaty has
and a range of other issues – at a And we reject – we reject, the Presi- 1874, which authorized inspec- been something we’ve been working
time when all of them, we were more dent and I – the tired theory that our tions – almost unprecedented –of on since the late ‘70s. We have an
closely aligned than ever on each and values and our interests must com- vessels – Korean vessels – sus- opportunity to make more progress.
every one of those issues. pete for influence over our politics. pected of carrying nuclear materials
We flat reject that notion because into or out of their country. And the Central Asia: We’re working to-
So to seize this opportunity, Presi- we believe and we will continue to nations of the world have cooper- gether to foster a stable, democratic
dent Obama and I proposed forging stand up for our principles. And I ated. I would argue it’s because government – and I might add, a
a fresh new start by, as I said in the believe those principles make all of Russia and the United States were great deal of the credit goes to your
initial speech on our foreign policy, us, Americans and Russians alike, leading in this effort. President – in Kyrgyzstan, combat-
pressing a reset button. We wanted more secure, more prosperous, and ing drug traffickers, eradicating
to literally reset this relationship, more free. Afghanistan: We’re cooperating on polio – steps that suggest we can
reset it in a way that reflected our what we call the Northern Distribu- move beyond the so-called “Grand
mutual interests, so that our coun- Two years since we pressed that tion Network, which now brings Game” and “spheres of influence”,
tries could move forward together. reset button, I would argue the vital supplies to the ISAF (Interna- a Cold War relic in my view.16 AMCHAM GUEST SPEAKER BRIEFING AMCHAM NEWS ISSUE 92
Cooperation on each of these But there is still much work to be
important issues has made America done to enhance our security coop-
more secure, and I would argue – eration and our closeness.
presumptuous of me – but I believe
it’s made Russia more secure. On the Caucasus: We have a
genuine disagreement not only with
But the reset has also produced your leadership, but with the vast
more subtle signs of progress; again, majority of the Russian people, over
ones that would not have been con- Georgia. But there’s a larger princi-
templated even four years ago. Rus- ple at stake here in our view – and I
sian helicopters used for relief efforts want to be straightforward, because
in Sudan. California firefighters if friends cannot be straightforward
helping to fight wildfires in central with friends, it really isn’t friend-
Russia. American and Russian ship based on mutual trust. We think
drug officers working side-by-side there’s a larger principle at stake
in Afghanistan, the world’s largest here. As I said when I announced
producer of heroin and opium, as the reset at Munich, I said, “It will
a consequence of it. Student body remain our view that sovereign
presidents from American universi- states have the right to make their
ties discussing democracy and own decisions and choose their own
human rights with Kremlin advisors. alliances.” And further: “We will not
And we’re very pleased that they are recognize any state having a sphere
here today in the audience. of influence.” And almost regardless
of the difficulty, we don’t support
These things clearly would have any state through force changing the
been hard to imagine amid the leadership of an elected – demo-
mistrust and ill will a little over two cratically elected – individual.
years ago. And to some of you, they
may sound small. But having been We have also worked closely, though,
involved in this relationship for over with both Russia and Georgia to
thirty-six years, they are more than reduce the threat of further conflict. In the 20th century, the wealth of a Russian partners. General Electric
the sum of their parts. As a result, Georgia recently re- nation was measured by the abun- is undertaking a major expansion of
stated its commitment to [the] non- dance of its natural resources, the its operations here. And John Deere
And if you think I’m exaggerating use of force; and commercial flights expanse of its landmass, or the size last year opened a major manufac-
and overstating the case, consider the have resumed between Moscow of its army. Russia had all of those turing center in the Moscow region,
following statistics, or polling. In De- and Tbilisi. But we must do more things. But in the 21st century, the and is already doubling its capacity
cember of 2008, one month before we to assist those displaced by the 2008 true wealth of a nation is found in and, as a consequence, employ-
were sworn in as President and Vice conflict and enable normal travel the creative minds of its people and ment.
President, polling showed that only and commerce to occur. their ability to innovate. There, too,
17 percent of all Russians had a posi- Russia is remarkably blessed. Un- And Alcoa is working closely – very
tive opinion of the United States – 17 Our joint diplomacy was essential leashing Russia’s full potential will closely – with a nanotechnology
percent. This year, that number has and is essential in ending conflicts be a boon and an opportunity not firm, Rusnano, on an array of high-
jumped to over 60 percent. Our goal is in other areas: Nagorno-Karabakh, only for the United States and for tech products that are the future.
to have it continue to climb. where I would again commend Russians, but again for international
President Medvedev for his tireless commerce and peace and justice. This week a coalition of public and
That same year, Americans ranked work for a peaceful and permanent private sector partners in Russia
Russia as one of the top five countries settlement there. Already, our economic relationship and the U.S. announced a new
threatening American security – two is moving to center stage. PepsiCo program, as well, supported by an
years ago. This year, only 2 percent But the next frontier in our relation- has made a multi-billion dollar American company, Johnson &
of the entire American population ship – and the main area in my view investment in Russia, [in] Russia’s Johnson. That program will provide
say they view Russia as a threat. All and the President of the United leading juice and dietary producer. pregnant women and new moth-
of this leads to one very important States’ view of future opportunities Imagine, five years ago, the likeli- ers with health information via text
conclusion in the mind of one Vice and challenges – will be building hood that an American company messages – a great example of how
President that I think is now beyond stronger ties of trade and commerce could buy, in effect, the largest of civil society, government, and the
dispute: the reset is working – work- that match the security coopera- anything in Russia. private sector can work together to
ing for all of us, working for Russia, tion we have accomplished over the find innovative solutions to shared
and I would presumptuously suggest, last two years and hopefully will Chevron and ExxonMobil recently challenges – real challenges to real
working for the world. continue to grow. announced major new deals with people, ordinary people.AMCHAM NEWS ISSUE 92 AMCHAM GUEST SPEAKER BRIEFING 17
And just yesterday, I witnessed the We’re also providing – not as a gift. We’re making progress on these quote, his quote – and he prescribed
signing of a $2 billion sale of eight When I say providing, it sounds like issues that have caused so much a set of reforms.
Boeing 777 aircraft to Aeroflot, we’re providing a gift. We’re also – friction in the past. We’re mak-
expanding last year’s agreement to American venture capitalists and ing progress on agricultural trade, The simple fact is this: Pragmatic
sell fifty 737s to Russian Technolo- other foreign investment is flowing sanitary regulations, enforcement of businessmen and -women, par-
gies. These contracts were able to into Russia’s economy to allow it intellectual property rights, though ticularly those who are not so big
be done and the plane was able to to diversify beyond your abundant we still have more work to do. that they can go directly to each of
be built, I might add, because of natural resources – metals, oil, and our governments to resolve their
Russian titanium, ingenuity, and gas – and help Russian start-ups get So let me make this as clear as I differences – they want to invest
the engineers here, as well as the their ideas to market. possibly can: President Obama and where they can expect a reasonable
brilliant engineers and workforce I strongly support and want to see return and an absolute assurance
back in the United States. These Those of you who are studying busi- Russia in WTO. We’ve made that that the legal system in the country
contracts will create or sustain tens ness know that it’s one thing to have clear to the Congress; we’ve made they’re investing in will provide
of thousands of jobs in Russia and in an idea. It’s another thing to get to that clear to the world; and we’ve due process.
the United States. market. It takes people willing to made that clear to anybody who
make a gamble, make an invest- is willing to listen. I don’t think it’s reasonable to
On his visit to Silicon Valley last ment, make a bet. expect Americans or Europeans or
year, President Medvedev made It’s better for America – and pre- Russians themselves to invest con-
clear Russia’s desire to bolster Already, several of America’s lead- sumptuous of me to say this; never fidently in a country in which there
our partnership in the innovation ing firms have shown their support tell another man his business or are infamous cases in which prop-
economy – a priority the United for this vision, by committing to another country their interest – but erty rights were violated and not
States shares, and the President of invest, in the case of several venture it’s better for America, and I believe protected. It may be unfair, but it
the United States has announced as capitalists, over $1 billion – already better for Russia, to be able to trade is a perception. A country in which
the hallmark of what we’re attempt- committed – investing in Russian with each other under predictable investors, Russian and American,
ing to do. high-tech industry. and transparent rules. And that’s can lose when they succeed – in
also why we’re going to work with fact, have lost fortunes because of
Yesterday I had the opportunity to But despite these steps, our trading Congress to terminate the Jackson- legal abuses. A company which can
be in Skolkovo, a high-tech hub on and investment relationship is not Vanik amendment. be seized, or an owner imprisoned
the outskirts of Moscow that has the what it should be. As a matter of on a politician’s whim; in which a
promise of becoming the Silicon fact, it was higher years ago than it These steps are critical compo- lawyer like Sergei Magnitsky can be
Valley of Russia. Closer cooperation is now. Russia was America’s 37th nents to our Administration’s trade arrested after accusing the police
will allow American companies to largest export market in 2010. The agenda. There used to be a bank of fraud and then die in detention
benefit from greater access to Rus- value of the goods that cross our robber in America in the ‘30s. His before being tried.
sia’s deep pool of talented engineers, border, the United States border name was Willie Sutton. And they
mathematicians, and computer with Canada and Mexico, every few once asked Willie Sutton, “Why do No amount of government cheer-
scientists. days exceeds the annual value of our you rob banks, Willie?” He said, leading or public relations or U.S.
trade with Russia. We’ve got to do “That’s where the money is”. We’re support or rebranding will bring
Yesterday we had this discussion, a better. And I believe we can. not doing Russia a favor. This is in wronged or nervous investors back
roundtable discussion of American the overall best interest, we think, of to a market they perceive to have
businesses and CEOs from Russian This is one of the reasons the Presi- Russia, but we know for the United these shortcomings. Only bold and
business. A Russian businessman dent and I so strongly support Rus- States. We know for our employ- genuine change. I’m not here to
said something that was true: He sians accession to the World Trade ment to grow, trade, exports have to lecture. I’m not here to preach.
said the reason why it’s good to Organization. Accession will enable grow as well. I’m not here to tell Russia what to
be here in Russia and investing is Russia to deepen its trade relations do. But I know from my experi-
because of its market. An interest- not only with the United States, but So we expect Russia’s leaders to ence, almost every country I visit,
ing comment from the chairman of the rest of the world. And it will give continue working with us to move particularly smaller ones – not
the board of Boeing in Russia: He American companies a greater and the process along. But you in this great countries like Russia – the
said, with all due respect to my good more predictable – important word, room know as well as anyone that first thing they’ll tell me is, “Can
friend, that may be true, but that’s predictable – access to Russia’s even if liberalizing our trading you encourage, Mr. Vice President,
not the reason we’re here. Other growing markets, expanding both relationship, Russia’s business and American businesses to invest
countries have four, five, six, and U.S. exports and employment. legal climate, quite frankly, is going here?” And there’s the same
seven times the capacity to purchase to have to continue to improve, be- answer: “Get your system right.
our planes in terms of their needs. The renewed energy that Russian ne- cause right now for many companies Don’t make it a gamble. Have
But we’re here. He said let me tell gotiators have brought to the table in it presents a fundamental obstacle. certainty.”
you why we’re here. We’re here this accession effort, and Moscow’s
because the best engineers in the political will to get the job done, are In early 2008, President Medvedev Over the past few months alone,
world are here, many educated at for the first time in a long time genu- described Russia as, and I quote, “a our Administration has spoken out
this great university. inely moving things forward. country of legal nihilism” – not my against allegations of misconduct in18 AMCHAM GUEST SPEAKER BRIEFING AMCHAM NEWS ISSUE 92
the trial of [Mikhail] Khodorkovsky choose a free press. It’s the great- Now, there are some in Russia who He was absolutely right back then,
and of the beating and detention of est guarantee of freedom there is, say we hold your country to an but he would be absolutely wrong
“Strategy 31” demonstrators. the so-called Third Estate. And unreasonably high standard. It is today. Russians and Americans
believe me, to the American press true our expectations are high, but inside and outside of government
Some of you may say, “Well, how up there, they drive me crazy. It’s it’s because we’ve learned during have worked extremely hard to
can you say those things out loud, not like they say nice things about the Cold War just how capable overcome decades of mistrust,
Mr. Vice President, and expect me all the time. But I really mean the Russian people are. When you to identify common ground, to
to have a better relationship?” it: It is the single best guarantee of launched Sputnik, we had to mar- fashion a more secure and more
They’re necessary to have a good political freedom. shal our greatest intellectual talents prosperous future for both coun-
relationship. We should not have to to begin to meet the challenge. tries. And in the second decade of
make choices. We will continue to And viable opposition and public And we had no illusions ever about this new century, the United States
object when we think human rights parties that are able to compete is the capacity of our then-adversary. and Russia no longer have good
are violated or democracy and the also essential to good governance. reason not to trust one another.
rule of law is undermined. Just as competition between top And in this new era of partnership, There is no good reason not to
athletes produces better players our respect for the Russian people trust one another.
For us, these are matters of princi- and better teams, it’s also true that as innovators, as thinkers, remains
ple, but I would argue they’re also that works as well among firms who undiminished. Unleashing the It’s legitimate to be skeptical as
matters of pragmatism. History provide better services and better intellectual capacity of this country you are in dealing with any nation,
shows that in industrialized socie- products. Political competition is not only in Russia’s interest, but because their self-interest may be
ties, economic modernization and means better candidates, better it’s in America’s national interest, different to you. But it does not
political modernization go hand- politics, and most importantly, and I would argue the world’s translate into: We cannot trust.
in-hand. You don’t get one without governments that better represent interest. This is no longer a zero-
the other. Or put it this way: You the will of their people. sum game. If two great nations that for forty
don’t get industrial modernization years stood on the opposite sides
without political modernization. In my view, the Russian people Folks, as you well know, we’ve of the 20th century’s deepest
And I realize it’s been a short jour- already understand this. Polls show already come a long way. I visited divide can stand side-by-side fac-
ney since, as we say in the West, that most Russians want to choose Moscow for the first time in ’73, ing the 21st century challenges, it
the wall came down. And I realize their national and local leaders in but in the summer of ’79, I was will benefit not just the American
there is an awful lot that’s been competitive elections. They want to asked by then-President Carter, people and the Russian people, but
accomplished. But modernization be able to assemble freely, and they some thirty years ago, to lead a all people.
in every way is essential. want the media to be independent delegation of United States sena-
of the state. And they want to live tors who were uncertain about the That future is not just the stuff of
I think that’s why so many Rus- in a country that fights corruption. SALT Talks, SALT II – Strategic which dreams are made. We are
sians now call on their country to Arms Limitation Talks. And I was already moving in that direction.
strengthen their democratic insti- That’s democracy. They’re the a strong supporter of that treaty. Yes, it can be knocked off course,
tutions. Courts must be empow- ingredients of democracy. So I But there were a group of new but we are already moving in that
ered to uphold the rule of law and urge all of you students here: Don’t senators who were not familiar direction. And I say to you young
protect those playing by the rules. compromise on the basic elements with the treaty, and agnostic on it. people in this audience: It’s in-
of democracy. You need not make And I was asked to bring nine of cumbent upon you and incumbent
Non-governmental watchdogs that Faustian bargain. them to Russia. And we sat across upon the young people of my
should be applauded as patriots, a conference table in the Krem- country to not allow us to get off
not traitors. As a famous American And it’s also the message I heard lin, across the table from Leonid that path, to stay in this direction.
jurist once said, “Sunlight is the recently when President Medvedev Brezhnev. To his left was Defense
best disinfectant”. In today’s soci- said last week, and I quote him, Minister Ustinov, and to his right And I know that for many of you
ety, we’d probably say transparency “Freedom cannot be postponed”. was Premier Kosygin. And to state here today, this will be a joint ef-
is the best lubricant. Joe Biden didn’t say that. The the obvious, it was a very different fort – that you’ll join us. There’s
President of Russia said that. time. And I recall President Brezh- much to overcome, but there’s
Journalists must be able to publish And when Deputy Premier and nev was sicker than we thought much we’ve done. And I would
without fear of retribution. In my Finance Minister Kudrin said that then. And he excused himself and argue that based on what we’ve re-
country it was a newspaper – not only fair elections can give the left the meeting early and turned cently done, it’s a clear indication
the FBI or the Justice Depart- authorities the mandate of trust we it over to Premier Kosygin, who we can fundamentally change this
ment – it was a newspaper, The need to help implement economic in his opening statement said the relationship on a permanent basis.
Washington Post, that brought down reforms; that’s a Russian leader, following – I will never forget
a President for illegal actions. not an American leader. Russia it – he said, “Before we begin our Thank you all for being so gracious
and America both have a lot to discussion, Senator, let’s agree that waiting and even more gracious
Thomas Jefferson said that if he gain if these sentiments are turned we do not trust you, and you do not listening. Thank you. ■
only had a choice of a free press into actions, which I am hopeful trust us. And we both have good
or what we had, he said he’d they will be. reason”. Literally.You can also read
