[Congressional Record Volume 153, Number 91 (Thursday, June 7, 2007)]
[Senate]
[Page S7324]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         U.S.-RUSSIA RELATIONS

  Mr. NELSON of Nebraska. Madam President, I rise today to acknowledge 
the United States' crucial relationship with Russia. The fate of U.S.-
Russia relations rests on key agreements regarding security, trade, and 
energy policies.
  The annual G8 Summit taking place this week in Germany comes at a 
crucial time in our relationship with Russia, a key international 
trade, military, and security partner to the United States.
  For decades after World War II, our military and national security 
policies focused mostly on the Soviet Union. At that time, both nations 
pursued a foreign policy dubbed ``Mutually Assured Destruction.''
  In the early 1990s, with the support of the United States, new 
Russian leaders began instituting democratic reforms. As the political 
landscape in the Soviet Union improved, so did our relationship with 
Russia. Instead of destruction, our countries have pursued cooperation, 
though the Russians still have work to do on human rights. Certainly, 
recent actions by the Russian Government to limit freedoms, crack down 
on journalists, and inflict economic damage on its neighbors are cause 
for concern for the United States. Some of these concerns can and 
should be addressed through engagement and diplomacy with Russia.
  Recently, relations between the United States and Russia have become 
strained, with the rhetoric between the nations exacerbating the 
problem. As the G8 meetings commence, it is imperative that the U.S. 
Government engage Russia on the vital security, trade, and energy 
policies important to both nations.
  Last week, as cochairman of the U.S. Senate-Russia interparliamentary 
working group, I held 3 days of meetings in Moscow with legislators and 
top Russian officials, including Russian Foreign Minister Sergey 
Lavrov, to discuss our mutual economic and security interests.
  The Russians were united on key matters. First, they question U.S. 
intent with regard to deployment of missile and radar systems in Poland 
and the Czech Republic. Second, they would prefer an extended timetable 
on independence for Kosovo. They also identified vital security matters 
where they and we Americans can work together, specifically, halting 
Iran's nuclear program and the spread of global terrorism. While we may 
have disagreed on the appropriate manner in which to address the 
emerging threat of Iran's nuclear program and the amount of time in 
which we have to do so, Russian officials were clear that, like me, 
they believe Iran's ultimate goal in developing nuclear power is to 
produce a nuclear weapon.
  Our delegation's message to the Russians was clear as well: we can 
work out differences over missile defense, Kosovo and other issues, but 
the Russians need to step up and assist the global community with Iran 
and terrorism in Iraq. Cooperation is critical to the success of our 
relationship.
  In addition, Russia has tremendous economic potential. They have 
registered 5 percent or better economic growth in each year since 1999 
and 6.7 percent in 2006. Personal income grew 10 percent in 2006. 
However, this growth has impacted mostly urban areas such as Moscow or 
St. Petersburg, and more needs to be done to improve economic 
conditions in rural areas.
  U.S. exports to Russia for the first 11 months of 2006 totaled $7.8 
billion. U.S. foreign direct investment in Russia in 2005 was $5.5 
billion, up from $3.8 billion in 2004. Russians are buying American 
products and services--it seemed that every fifth car in Moscow was a 
Ford. But we can do better by helping to raise the standard of living 
in Russia to advance democratic reforms.
  Russia is now working to join the World Trade Organization, WTO. The 
United States maintains an obscure trade law, known in Washington-speak 
as ``Jackson-Vanik,'' that would limit U.S. business trade and 
investment in WTO-member Russia because the law prevents normalized 
trade relations between the two countries. While the original intent of 
this trade law was admirable, it is now widely believed to be 
antiquated and remains only as yet another Cold War relic, this time 
hindering future progress in opening permanent normal trade relations 
between Russia and the United States. If Jackson-Vanik remains in 
place, Russian businesses would not suffer alone upon Russia's 
accession to the WTO; U.S. businesses would also suffer while 
businesses from around the globe prosper in Russia's increasingly 
valuable markets. Congress needs to ``graduate'' Russia from this trade 
provision so U.S. firms can compete with foreign firms on the 
economically fertile ground in Russia.
  Finally, as with other allies, important and controversial matters 
between the United States and Russia will continue to arise. Energy 
production and supply, for example, is an important national security 
matter for the United States and its allies. Russia's state-controlled 
energy company, Gazprom, is building an intricate pipeline system which 
will control natural gas flow to European countries. It currently 
supplies about 25 percent of Europe's natural gas, with higher 
percentages to some former Soviet European states. About 40 percent of 
crude oil exports move to Europe through a pipeline system. They plan 
to expand to North America. Russia has already exploited the dependence 
of Ukraine, Moldova, Belarus, and Georgia on its energy resources. 
Without cooperation and understanding between our countries, this 
system could leave the United States vulnerable in the future to gas 
supplies controlled by the Russians.
  Mikhail Margelov, my Russian counterpart in the working group, said 
that the U.S.-Russia alliance must be strong for the future of both 
countries. He is right. Collaboration can bring about change for the 
good. Negotiation can resolve conflicts. Strong relations can solidify 
Russia's democracy.
  The administration should use the G8 Summit as an opportunity to 
engage Russia on these key security, trade and energy policy matters. 
It is in the national security interests of the United States to have a 
strong relationship with a democratic Russia.

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