[Congressional Record Volume 148, Number 112 (Monday, September 9, 2002)]
[House]
[Pages H6110-H6111]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                RUSSIAN/UNITED STATES ENERGY COOPERATION

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Pennsylvania (Mr. Weldon) is recognized for 5 minutes.
  Mr. WELDON of Pennsylvania. Mr. Speaker, I rise tonight to encourage 
our colleagues to support a new direction for America as outlined by 
both our President and the President of Russia, President Putin.
  Later on this month there will be a major energy summit in Houston, 
Texas, sponsored by the U.S. Energy Association. It will have the major 
energy players in our country and Russia come together to see ways we 
can cooperate.
  This follows on with recommendations that many in this body took in a 
document that we produced last fall entitled, ``A New Time, A New 
Beginning'' which one-third of the House and Senate joined together in 
supporting. One of our major tenets was that we should work together 
with Russia on their energy exploration and development. The reason 
this is so critically important is, obviously, America's dependence on 
Middle Eastern crude and the problem it causes us as evidenced by the 
current crisis in the Middle East. Russia has huge supplies of energy. 
We have a need; we have the technology. We should be working together.
  To that end, Mr. Speaker, there are a number of initiatives under 
way. I am circulating a memo in the House which I would encourage our 
colleagues to sign which is a joint statement that will be signed by 
both Members of the Congress, the House and the Senate, and members of 
the Duma and Federation Council. This document is followed through in a 
piece of legislation that I will introduce this week; and hopefully we 
can have that bill on the House floor before we adjourn at the end of 
September. In fact, my intent is to have the Duma ratify the document 
at the end of September. Eight hours later in Washington, the Congress 
will ratify the same document that calls for an expanded U.S.-Russian 
cooperation on energy.
  Mr. Speaker, that document and the joint statement are as follows:

 Joint Statement of the Members of the U.S. Congress and R.F. Federal 
    Assembly on New Energy and Trade Cooperation Between Two Nations

       On behalf of the U.S. Congress and members of the Russian 
     Federal Assembly we strongly support the recent decision by 
     President Bush on June 6, 2002 to extend market status to the 
     Russian economy. The granting of market status is one of many 
     mutually beneficial measures our two governments should 
     continue to pursue to promote long-term engagement and 
     integration of Russia into the world economy. A key component 
     of new engagement is mutual efforts to bring greater 
     stability to world energy markets and to support sustained 
     economic growth in Russia and the United States.
       Russia, with its vast oil and gas resources, a growing and 
     diverse number of private sector companies, and a renewed 
     commitment to investment by international energy companies, 
     offers a unique opportunity to provide stability to an often 
     volatile and insecure world energy market. We recognize that 
     Russia and the U.S. can play a critical role in supporting 
     energy development among the resource rich countries of the 
     former Soviet Union (FSU).
       In the coming months we will revitalize the work of the 
     Duma-Congress Study Group on energy policy and coordinate our 
     efforts with our respective Parliaments as well as efforts 
     now underway by the government agencies of the United States 
     and Russia. Among the specific legislative and other measures 
     we commit to pursue are:
       U.S. Congressional action to remove trade and economic 
     barriers, including outdated laws no longer applicable to 
     this New Time and New Beginning, such as the review 
     provisions contained in the Jackson-Vanik Amendment of the 
     1974 Trade Act.
       Duma action to strengthen investment incentives in the 
     Russian energy sector, such as full implementation of 
     Production Sharing legislation, encouragement of regulatory 
     reform, and other measures to attract international 
     investment into the Russian energy sectors. Of specific 
     concern are legislative and related policy measures to permit 
     full implementation of projects on Sakhalin Island and in the 
     Timan-Pechora region, all of which offer unique opportunities 
     to increase world and U.S. supplies of petroleum.
       Regulatory and investment frameworks to expand Russia's oil 
     and gas export capacities.
       Joint parliamentary support for Russia's ascension to the 
     WTO.
       High level and sustained exchanges on energy development 
     between official entities and private sector companies of 
     Russia and the United States.
       As our two governments proceed with this important Energy 
     Dialogue we call upon them to consult widely with interested 
     parties to promote exchanges and to seek support from the 
     broadest cross section of our business and civil societies. 
     Among the important non-governmental groups we value highly 
     and whom we will continue to consult with are the Moscow 
     International Petroleum Club, US-Russia Business Council, 
     American Chamber of Commerce in Moscow, Russian-American 
     Council for Business Cooperation, American-Russian Chamber of 
     Commerce and Industry and other related entities that can 
     play a critical role in policy assessments and promoting 
     private sector exchanges. We will encourage the government 
     agencies of Russia and the United States to consult widely 
     with these groups.

                            H. Con. Res. --

       Whereas the Russian Federation, with its vast oil and gas 
     resources, a growing and diverse number of private sector 
     companies, and a renewed commitment to investment by 
     international energy companies, offers a unique opportunity 
     to provide stability to an often volatile and insecure world 
     energy market;
       Whereas on June 6, 2002, Russia was granted market status 
     economy [by the United States?];
       Whereas the granting of market status is one of many 
     mutually beneficial measures that the Governments of Russia 
     and the United States should continue to pursue to promote 
     long-term engagement and integration of Russia into the world 
     economy;

[[Page H6111]]

       Whereas a key component of new engagement is mutual efforts 
     to bring greater stability to world energy markets and to 
     support sustained economic growth in Russia and the United 
     States; and
       Whereas both Russia and the United States can play a 
     critical role in supporting energy development among the 
     resource rich countries of the former Soviet Union: Now, 
     therefore, be it
       Resolved by the House of Representatives (the Senate 
     concurring), That--
       (1) it is the sense of Congress that--
       (A) in proceeding with [this important energy dialogue?] 
     the Governments of the Russian Federation and the United 
     States should consult widely with interested parties to 
     promote exchanges and to seek support from the broadest cross 
     section of business and civil societies; and
       (B) the United States should remove trade and economic 
     barriers [with respect to Russia?], including provisions of 
     law that are no longer applicable, such as chapter 1 of title 
     IV of the Trade Act of 1974 (commonly referred to as 
     ``Jackson-Vanik''); and
       (2) Congress--
       (A) supports the actions of the Russian Duma to strengthen 
     investment incentives in the Russian energy sector, such as 
     full implementation of production sharing legislation, 
     encouragement of regulatory reform, and other measures to 
     attract international investment into the Russian energy 
     sectors;
       (B) supports the actions of the Russian Duma to permit full 
     implementation of [energy?] projects on Sakhalin Island and 
     in the Timan-Pechora region, all of which offer unique 
     opportunities to increase world and United States supplies of 
     petroleum;
       (C) encourages regulatory and investment framework in 
     Russia to expand Russia's oil and gas export capacities;
       (D) supports the accession of Russia to the World Trade 
     Organization (WTO); and
       (E) supports continued high level and sustained exchanges 
     on energy development between the Governments of Russia and 
     the United States and between businesses in the two 
     countries.

  Mr. Speaker, I would also call my colleagues' attention to a speech 
being given at the National Press Club this Thursday by Senator Conrad 
Burns. In that speech he will focus on the need for America to move 
toward joint U.S.-Russian energy cooperation.
  Mr. Speaker, one final point, I will be contacting the administration 
tomorrow because the upcoming summit on October 1 and 2 in Houston is 
critically important, but to this date my understanding is it does not 
have a large focus on the legislative process as part of the energy 
initiative. And, obviously, we cannot have a joint energy relationship 
unless both bodies in both countries are directly involved. So I would 
call upon the administration to provide a provision in that conference 
for Members of the House and the Senate, members of the Duma and the 
Federation Council to speak to the issues of importance that will allow 
us to implement the ideas and the proposals of both President Bush and 
President Putin on ways that we can expand the cooperation between the 
U.S. and Russia in the energy arena.

                          ____________________