Title: Message

2002-05-24 01:49 MSK - Putin criticizes US Senate's decision


MOSCOW - President Vladimir Putin on Thursday criticized the U.S. Senate's refusal to lift trade sanctions against Russia as a "strange decision" reflecting outmoded thinking, the Interfax news agency reported. The Senate made the decision on Wednesday, the eve of U.S. President George W. Bush's visit to Russia for a summit at which trade issues are expected to be a significant component. The Senate refused to lift trade restrictions Russia under the Jackson-Vanik amendment, a 1974 law that ties Moscow's trade privileges to its policies on Jewish emigration and other human rights. "Those in the United States who view our relations not as American-Russian but American-Soviet still have high potential," Putin was quoted as telling a meeting of Russian industrial and business figures. Bush and Putin will discuss boosting Russian oil exports to the United States during their upcoming summit, Russia's economics and trade minister said Thursday. Although Russian oil companies started exporting oil to the United States for the first time only this year, the strong growth in Russia's oil sector means Moscow could become a "strategic partner" of the United States in ensuring steady energy supplies, Trade Minister Gherman Gref told reporters. U.S. Undersecretary of Energy Robert Card said recently that the United States is looking to Russia — the world's second-largest oil producer — as a key alternative source of oil. The United States is keen to reduce its dependence on OPEC, given the unrest in the Middle East and uncertainties over Iraq. Despite Russian oil sector growth, Gref also emphasized that Russian oil companies need more outside investment. U.S. Commerce Secretary Don Evans responded by predicting a large boost in U.S. investment in Russia in the next few years. Their news conference came just hours before Bush was to arrive in Moscow for a four-day visit. The centerpiece of the visit is an arms control deal cutting nuclear arsenals by two-thirds, but trade is also expected to top the agenda. Bush is expected to meet Russian Agriculture Minister Alexei Gordeyev and discuss a dispute over U.S. poultry exports to Russia, the ITAR-Tass news agency reported. Russia suspended American chicken imports in March over sanitary concerns, then lifted the ban after weeks of negotiations. But new regulations have delayed a resumption of deliveries, frustrating producers in 38 U.S. states that make chicken the chief American export to Russia. Another thorn in trade relations is the U.S. refusal to formally recognize Russia as a market economy, a crucial step before Russia can join the World Trade Organization. Russia is the largest economy still outside the WTO, which it has been trying to join for seven years. Gref said Bush would not formally recognize Russia as a market economy during this visit, despite recent statements by Russian officials suggesting that he would. -AP

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