    [Public Papers of the Presidents of the United States: William J. Clinton (1997, Book I)]
    [March 21, 1997]
    [Pages 344-346]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Joint Statement on United States-Russia Economic Initiative
    March 21, 1997

        President Clinton and President Yeltsin have committed to a joint
    initiative to stimulate investment and growth in Russia, deepen U.S.-
    Russian economic ties and accelerate Russia's integration with global
    markets. In so doing, the Presidents underscored the vital importance of
    bold measures to complete Russia's historic transformation to a market
    economy. This transformation is in the mutual interest of the United
    States and Russia--to meet the aspirations of the Russian people for a
    more secure and prosperous future, and to encourage trade, investment
    and new jobs in both countries. Both Presidents affirmed their
    commitment to achieve the vast potential of U.S.-Russian economic
    cooperation.
        The Presidents discussed recent economic developments in their
    countries and objectives for the future. The process of unprecedented
    transformation of Russia into a democratic nation that respects private
    ownership and the principles of a free market is continuing. In the past
    five years, a once non-existent private sector has emerged to produce 70
    percent of Russia's national income and employ 55 percent of the Russian
    work force. With basic market structures now formed, markets, not the
    state, increasingly allocate resources and drive prices

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    and business decisions. Private banks, capital markets and commodity
    exchanges are emerging as the new institutions underpinning Russian
    economics. Inflation has been sharply reduced, and Russia has begun to
    enter international capital markets. Taking into account these changes,
    the United States and Russia will consider problems connected with the
    regulation of trade between the two countries, take steps to increase
    access to each other's markets, and establish the appropriate conditions
    to extend Most Favored Nation status to Russia on a permanent and
    unconditional basis.
        President Yeltsin outlined Russia's plans to enact and implement a
    new legal regime that convincingly demonstrates Russia's commitment to
    attracting foreign and domestic investment. His highest economic
    priority is a tax regime that both meets the revenue needs of the
    Russian government and stimulates legitimate business, including actions
    on the value-added tax, excise tax, and both corporate and individual
    income taxes. Russia will act to pass a new tax administration law that
    clarifies authorities, responsibilities, fines and the ability to
    resolve disputes. In the energy sector, measures will be taken to pass
    legislation that brings into full force Russia's Production Sharing
    Agreement law and provides the authority to develop PSA fields. New
    efforts will be made to ratify the U.S.-Russia bilateral investment
    treaty. The Presidents committed to deepen cooperation to fight economic
    crime. President Yeltsin highlighted his plans to consolidate the rule
    of law and to strengthen Russian legislation aimed in particular at
    combating money laundering and organized crime. President Yeltsin
    stressed the importance of the quick adoption of a new criminal
    procedure code. He will pursue the substantial completion of this agenda
    by the end of 1997. Further, the Presidents committed to work together
    to meet the challenge of attracting investment in order to utilize the
    vast human and natural resources that Russia possesses.
        President Clinton stated that U.S. Government agencies will maximize
    support under their programs to finance American investment in Russia.
    U.S. efforts will include intensified efforts for project finance,
    political risk insurance and investment funds through the Overseas
    Private Investment Corporation; expanding financing for transactions
    involving equipment exports through the Export-Import Bank that will
    result in capital investments in the Russian economy; and additional
    investments through the U.S.-Russia Investment Fund.
        The Presidents applauded plans announced by Vice President Gore and
    Prime Minister Chernomyrdin to launch a regional investment initiative
    that will attract resources to key regions, including the Russian Far
    East, to demonstrate the impact of joint efforts on policy reform and
    investment finance and to create new channels of commercial cooperation
    between regions in both countries. The United States and Russia
    recognize that Russian action on its economic agenda is key to building
    investor confidence and creating the demand needed to translate American
    financing into real investments in Russia. Toward this end, President
    Clinton is seeking additional funding in 1998 to expand U.S.-Russian
    economic cooperation, with a focus on tackling barriers to investment
    and doubling exchange programs between Americans and Russians, including
    the introduction of a new program to forge long-lasting connections
    between young, highly qualified individuals likely to emerge as
    influential leaders in future U.S. and Russian societies. The Presidents
    looked forward to the work of the joint Capital Markets Forum, which
    will bring together public and private sector participants to support
    the rapid development of Russia's capital markets.
        Presidents Clinton and Yeltsin affirmed that cooperation to
    integrate Russia's economy into the global economic system represents
    one of their most important priorities. The United States and Russia
    will intensify their efforts to accelerate Russia's integration into the
    international economic community. The Presidents set as a target that
    both sides would undertake best efforts for Russia, on commercial
    conditions generally applicable to newly acceding members, to join the
    World Trade Organization in 1998, and to join the Paris Club in 1997
    assuming agreement on conditions of membership. Together, the United
    States and Russia will define tasks which need to be accomplished and
    set targets for their completion in order to achieve this objective.
    They also count on making considerable progress toward Russia's
    accession to the Organization for Economic Cooperation and Development.
        The Presidents agreed that Vice President Gore and Prime Minister
    Chernomyrdin should broaden and intensify the work of the U.S.-Russian
    Commission on Economic and Technological Cooperation. The Presidents
    welcomed

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    the Commission's efforts to move beyond cooperation between federal
    governments to foster regional and local ties between the peoples of
    their countries. They noted the Commission's important achievements in
    the fields of trade and investment, energy, environment, health, defense
    conversion, agriculture, space, and science and technology. They
    recognized the Commission's leadership role in carrying forward
    bilateral relations into the twenty-first century.
        Presidents Clinton and Yeltsin expect that as the century turns,
    their joint initiative will result in a strategic economic partnership
    between the United States and Russia that will decisively strengthen
    bilateral ties and positively shape changes in the world economy. They
    look forward to a prosperous and market-oriented Russia as a full
    partner in the premier organizations that will define economic and trade
    relations for the twenty-first century. This will allow Russia to take
    its place among the community of nations contributing to a new
    international economic order where open markets and free trade foster
    global prosperity and the well-being of American and Russian citizens
    alike.

    Note: An original was not available for verification of the content of
    this joint statement.