#10
Izvestia
December 27, 2001
EUGENE LAWSON: SEPTEMBER CHANGED OUR ECONOMIC RELATIONSHIP
An interview with Eugene Lawson, Chairman of the US-Russia Business Council.
Author: Yevgeny Bai
[from WPS Monitoring Agency, www.wps.ru/e_index.html]

US-RUSSIA BUSINESS COUNCIL CHAIRMAN EUGENE LAWSON COMMENTS ON A REPORT ON PROSPECTS FOR RUSSIAN-AMERICAN TRADE AND ECONOMIC RELATIONS. HE DISCUSSES PROTECTION MEASURES AND DEREGULATION. HE SAYS THE JACKSON-VANIK AMENDMENT IS LIKELY TO BE REPEALED NEXT SPRING.

US Commerce Secretary Don Evans has received a report on prospects for Russian-American trade and economic relations drafted by the US-Russia Business Council. We are the first newspaper to receive a copy, and have approached US-Russia Business Council Chairman Eugene Lawson for comments.

Question: American leaders regularly say that the September tragedy has dramatically changed the political relationship between our countries. What changes, if any, are taking place in trade and economic relations?

Eugene Lawson: Those changes are no less dramatic. The pattern of relations between the defense sectors of the two states is completely different now. Despite the provisional restrictions on aircraft contracts [Boeing cancelled its contract with the Urals metals plant - Izvestia], the US aerospace industry still needs titanium from Russia. These deliveries compensate for the shortage of our own raw materials and enable our companies to compete with the Europeans. We hope that when the US Congress has adopted the new general system of preferences, titanium will be exempt from customs duties. The Pentagon can manage that, I think.

Question: Russian steel and aluminum producers are having serious difficulties with access to the American market.

Eugene Lawson: Yes, protectionism there is considerable. I think this sphere should be reorganized too. It should be a two-way street, figuratively speaking. Russia should be removed from the list of countries from which we demand additional customs duties.

Question: Many Russian goods are barred from the American market due to incomprehensible bureaucratic restrictions.

Eugene Lawson: That situation is changing for the better too. The process of certification for Russian MI-26 helicopters is underway. America does not have anything like this helicopter, which can lift 22 tons. American helicopters lift only 13-14 tons. The MI-26 could be actively used to fight forest fires, in construction, or when large shipments have to be moved. When the helicopter is no longer criticized for environmental reasons or its noise level, we will buy a substantial number of MI-26s.

Question: The US Congress has to repeal the outdated Jackson- Vanik amendment as well.

Eugene Lawson: According to what I've heard, the Congress will do so in spring 2002. Before President Bush's visit to Russia.

Question: The report mentions a fairly new sphere of investment: investment in Russian leasing.

Eugene Lawson: We expect the amount of American goods leased to Russia to increase at least five-fold in the near future, and the ratio of direct investment in leasing to amount to 25-30% of all investment. American companies are interested in development of leasing in the colossal Russian market. Russia has financial difficulties, and leasing is one of the most reliable ways of getting high-quality equipment.

We emphasize in the report that the transition to the new level of cooperation became possible when America became convinced that Russia intends to serious amend its legislation. Deputy Director of the Presidential Administration Dmitry Kozak and me discussed these matters twice. We have some serious proposals on the pensions reform and the system of insurance. Not so long ago a consultative center in the insurance sphere opened in Moscow with our assistance. We view it as a serious move towards appearance of American insurance companies in Russia.

Question: This spring you elected Semyon Kukes of the TNK oil company to the board of directors of the US-Russia Business Council. He is the first Russian there. Are there any other candidates?

Eugene Lawson: Yes. We offered a seat on the board to Sberbank CEO Andrei Kazmin. He accepted the offer. We hope to see him at the next meeting in Washington in spring. Mikhail Barkov, Russian Trade Representative in the United States: Yes, prospects of US companies' participation in development of leasing in Russia interest us greatly. Even the largest transport companies in Russia have pools of only 200-300 trucks. The American company Penske alone has 100,000 trucks and an annual turnover amounting to $11 billion. Many parties in Russia can afford to rent its trucks at $2,000-5,000 a month.

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