[Congressional Record Volume 149, Number 97 (Friday, June 27, 2003)]
[Extensions of Remarks]
[Page E1389]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




RECENT RUSSIAN PURCHASE OF AMERICAN MINE REPRESENTS FREE MARKET SUCCESS 
                       BENEFITING BOTH COUNTRIES

                                 ______
                                 

                            HON. TOM LANTOS

                             of california

                    in the house of representatives

                        Thursday, June 26, 2003

  Mr. LANTOS. Mr. Speaker, after the fall of the infamous Berlin Wall 
and break up of the Soviet Union, I advocated a Marshall Plan for 
Russia and the former Soviet Republics to demonstrate that democracy 
and a market economy is the better way for our former adversary.
  It is one thing to win the Cold War but quite another to vastly 
improve the lives of ordinary citizens who have never known freedom. 
Regrettably, our government did not seize the opportunity then and 
instead opted for smaller and fragmented programs to encourage private 
sector investment.
  Although we could and should have done more, a new generation of 
Russian entrepreneurs is boldly moving that country to a vibrant market 
economy, contributing to Russia's unlikely status as the world's 
leading growth economy of 2003.
  One of the most impressive examples is the Russian oil company, 
YUKOS, which under the able leadership of Mikhail Khodorkovsky, has 
become one of the largest and best operated energy companies in the 
world. This is good news for Americans, in that future oil imports from 
Russia will significantly reduce our energy dependence on the volatile 
Middle East.
  Mr. Speaker, another striking example of positive change in Russia 
today can be found in corporate governance. Business leaders, such as 
Mr. Khodorkovsky and Mr. Vladimir Potanin, head of INTERROS, Russia's 
largest private investment company, are pressing the issue of corporate 
responsibility and working to set standards to insure reform and good 
governance to help pave the way for Russia's membership in the WTO.
  The clearest sign of Russia's emergence as a player in the world 
economy is the recent acquisition by the Russian mining giant, Norilsk 
Nickel, of the Stillwater Mining Company in Montana, the largest 
acquisition by a Russian company in the United States.
  Norilsk Nickel brings experience and a first-rate management team to 
complement the Montana plant's operation and competitive position. This 
new synergy will bring benefits to both companies, the Stillwater 
shareholders and workers, and the consumers--the U.S. auto industry, 
who depend on both plants for the palladium it uses in catalytic 
converters.
  The transaction passed muster with two Federal agencies. The 
Administration's interagency group that looks at security-related 
issues on all foreign acquisitions in the U.S., and the Federal Trade 
Commission that scrutinizes impact of such transactions on consumers. 
The Stillwater shareholders also voted overwhelmingly in favor of the 
purchase.
  Only a few years ago, it would have been all but impossible to 
imagine the U.S. government approving the sale of an American mining 
company that holds claims on the only significant sources of platinum 
and palladium outside of South Africa and Russia. These two precious 
metals are the key ingredients in the automotive catalytic converters 
used to scrub pollution from exhaust emissions. They also are vital 
components in a wide-range of electronics and, of course, in fine 
jewelry as well.
  Commercial transactions, such as the Norilsk Nickel-Stillwater 
acquisition are important to Russia. Operating on a global scale and in 
tune with accepted rules of Commerce and good corporate governance and 
also demonstrates that major East-West investments is opening the doors 
to opportunity for both sides.
  Mr. Speaker, we need to encourage this kind of economic collaboration 
and rally the forces of a free market that make it possible. We should 
applaud the vision and dynamic leadership of Russia's new entrepreneurs 
and the implicit support accorded by our respective governments to 
encourage these bold initiatives.

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