01-07-05
Russian President Vladimir Putin pledged to supply more oil to the American market, while at the same time urging more US investment in Russia. Meeting with top executives from US corporations, Putin said Russia would continue to expand output of oil and natural gas and expected to ship 50 mm tons of oil annually to the US.
"We will step up the extraction of oil and gas, increase energy exports and
expand cooperation with the leading companies, including [those in] the US, in
our mainland, on the Barents Sea shelf, on the Sakhalin Island and other
regions," he said.
Putin said the increases would contribute to global and American economic and energy stability. Last October, Russia announced plans to ship 40 mm tons of LNG from Sakhalin island in Russia's Far East to the US over 20 years, starting in 2008.
Putin met with top executives from Citigroup, ConocoPhillips, Alcoa and IBM at
the Konstantinovsky Palace near St Petersburg. Alcoa Chief Executive Alan Belda
told after the meeting that the US firms would "continue to invest in Russia."
Putin told his guests that his government would "continue work to improve Russia's investment climate" and would strengthening the judicial system. He asserted that Russia's economic and political situation was stable -- with growth at 5.5 % this year, "higher than average world rates" -- and expressed the hope that US-Russian trade could be doubled "in coming years."
Putin complained about what he said were "restrictions and obstacles hampering
global interaction of our economies, including the notorious Jackson-Vanick
amendment, which is still effective." Introduced in the Soviet era, the
amendment effectively denies unconditional normal trade relations to countries
including Russia, which had non-market economies and restricted emigration
rights.
The Russian leader also cited US sanctions against Russian space companies and provisions of the Iran Non-proliferation Act, saying they were obstacles hindering better interaction.
Putin said when he meets with President Bush at the next G8 summit, he would
urge him to meet with leading Russian businessmen. His meeting with top American
executives was followed by a similar encounter with German business leaders a
day later.
Source: Globe and Mail Update