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| Russia PROFILE
OFFICIAL NAME: Geography People Government Economy (1999 est.) PEOPLE Most of the roughly 150 million Russians derive from the Eastern Slavic
family of peoples, whose original homeland was probably present-day Poland.
Russian is the official language of Russia, and an official language in the
United Nations. As the language of writers such as Tolstoy, Dostoevsky, Chekov,
Pushkin, and Solzhenitsyn, it has great importance in world literature.
Russia's educational system has produced nearly 100% literacy. About 3
million students attend Russia's 519 institutions of higher education and 48
universities. As a result of great emphasis on science and technology in
education, Russian medical, mathematical, scientific, and space and aviation
research is generally of a high order. The number of doctors in relation to the
population is high by American standards, although medical care in Russia, even
in major cities, is far below Western standards.
The Russian labor force is undergoing tremendous changes. Although
well-educated and skilled, it is largely mismatched to the rapidly changing
needs of the Russian economy. Millions of Russian workers are underemployed.
Unemployment is highest among women and young people. Many Russian workers
compensate by working other part-time jobs. Following the collapse of the Soviet
Union and the economic dislocation it engendered, the standard of living fell
dramatically, and one third of the population lives on just over $1 a day.
Moscow is the largest city (population 9 million) and is the capital of the
Federation. Moscow continues to be the center of Russian Government and is
increasingly important as an economic and business center. Its cultural
tradition is rich, and there are many museums devoted to art, literature, music,
dance, history, and science. It has hundreds of churches and dozens of notable
cathedrals; it has become Russia's principal magnet for foreign investment and
business presence.
St. Petersburg, established in 1703 by Peter the Great as the capital of the
Russian Empire, was called Petrograd during World War I, and Leningrad after
1924. In 1991, as the result of a city referendum, it was renamed St.
Petersburg. Under the Tsars, the city was Russia's cultural, intellectual,
commercial, financial and industrial center. After the capital was moved back to
Moscow in 1918, the city's political significance declined, but it remained a
cultural, scientific and military-industrial center. The Hermitage is one of the
world's great fine arts museums. Finally, Vladivostok, located in the Russian
Far East, is becoming an important center for trade with the Pacific Rim
countries.
HISTORY In 862, the political entity known as Kievan Rus was established in what is
now Ukraine and lasted until the 12th century. In the 10th century, Christianity
became the state religion under Vladimir, who adopted Greek Orthodox rites.
Consequently, Byzantine culture predominated, as is evident in much of Russia's
architectural, musical, and artistic heritage. Over the next centuries, various
invaders assaulted the Kievan state and, finally, Mongols under Batu Khan
destroyed the main population centers except for Novgorod and Pskov and
prevailed over the region until 1480.
In the post-Mongol period, Muscovy gradually became the dominant principality
and was able, through diplomacy and conquest, to establish suzerainty over
European Russia. Ivan III (1462-1505) was able to refer to his empire as
"the Third Rome" and heir to the Byzantine tradition, and a century
later the Romanov dynasty was established under Tsar Mikhail in 1613.
During Peter the Great's reign (1689-1725), Russia began modernizing, and
European influences spread in Russia. Peter created Western-style military
forces, subordinated the Russian Orthodox Church hierarchy to the Tsar, reformed
the entire governmental structure, and established the beginnings of a
Western-style education system. His introduction of European customs generated
nationalistic resentments in society and spawned the philosophical rivalry
between "Westernizers" and nationalistic "Slavophiles" that
remains a key dynamic of current Russian social and political thought.
Peter's expansionist policies were continued by Catherine the Great, who
established Russia as a continental power. During her reign (1762-96), power was
centralized in the monarchy and administrative reforms concentrated great wealth
and privilege in the hands of the Russian nobility.
Napoleon failed in his attempt in 1812 to conquer Russia after occupying
Moscow; his defeat and the continental order that emerged following the Congress
of Vienna (1814-15) set the stage for Russia and Austria-Hungary to dominate the
affairs of eastern Europe for the next century.
During the 19th century, the Russian Government sought to suppress repeated
attempts at reform from within. Its economy failed to compete with those of
Western countries. Russian cities were growing without an industrial base to
generate employment, although emancipation of the serfs in 1861 foreshadowed
urbanization and rapid industrialization late in the century. At the same time,
Russia expanded across Siberia until the port of Vladivostok was opened on the
Pacific coast in 1860. The Trans-Siberian Railroad opened vast frontiers to
development late in the century. In the 19th century, Russian culture flourished
as Russian artists made significant contributions to world literature, visual
arts, dance, and music.
Imperial decline was evident in Russia's defeat in the unpopular
Russo-Japanese war in 1905. Subsequent civic disturbances forced Tsar Nicholas
II to grant a constitution and introduce limited democratic reforms. The
government suppressed opposition and manipulated popular anger into anti-Semitic
pogroms. Attempts at economic reform, such as land reform, were incomplete.
1917 Revolution and the U.S.S.R. The U.S.S.R. lasted 69 years. In the 1930s, tens of millions of its citizens
were collectivized under state agricultural and industrial enterprises. Millions
died in political purges, the vast penal and labor system, or in state-created
famines. During World War II, as many as 20 million Soviet citizens died. In
1949, the U.S.S.R. developed its own nuclear arsenal.
First among its political figures was Lenin, leader of the Bolshevik Party
and head of the first Soviet Government, who died in 1924. In the late 1920s,
Josif Stalin emerged as General Secretary of the Communist Party of the Soviet
Union (CPSU) amidst intraparty rivalries; he maintained complete control over
Soviet domestic and international policy until his death in 1953. His successor,
Nikita Khrushchev, served as Communist Party leader until he was ousted in 1964.
Aleksey Kosygin became Chairman of the Council of Ministers, and Leonid Brezhnev
was made First Secretary of the CPSU Central Committee in 1964, but in 1971,
Brezhnev rose to become "first among equals" in a collective
leadership. Brezhnev died in 1982 and was succeeded by Yuriy Andropov (1982-84),
Konstantin Chernenko (1984-85), and Mikhail Gorbachev, who resigned as Soviet
President on December 25, 1991. On December 26, 1991, the U.S.S.R. was formally
dissolved.
The Russian Federation Boris Yeltsin was elected President of Russia by popular vote in June 1991.
By the fall of 1993, politics in Russia reached a stalemate between President
Yeltsin and the parliament. The parliament had succeeded in blocking,
overturning, or ignoring the President's initiatives on drafting a new
constitution, conducting new elections, and making further progress on
democratic and economic reforms.
In a dramatic speech in September 1993, President Yeltsin dissolved the
Russian parliament and called for new national elections and a new constitution.
The standoff between the executive branch and opponents in the legislature
turned violent in October after supporters of the parliament tried to instigate
an armed insurrection. Yeltsin ordered the army to respond with force to capture
the parliament building (known as the White House).
In December 1993, voters elected a new parliament and approved a new
constitution that had been drafted by the Yeltsin government. Yeltsin has
remained the dominant political figure, although a broad array of parties,
including ultra-nationalists, liberals, agrarians, and communists, have
substantial representation in the parliament and compete actively in elections
at all levels of government.
In late 1994, the Russian security forces launched a brutal operation in the
Republic of Chechnya against rebels who were intent on separation from Russia.
Along with their opponents, Russian forces committed numerous violations of
human rights. The Russian Army used heavy weapons against civilians. Tens of
thousands of them were killed and more than 500,000 displaced during the course
of the war. The protracted conflict, which received close scrutiny in the
Russian media, raised serious human rights and humanitarian concerns abroad as
well as within Russia.
After numerous unsuccessful attempts to institute a cease-fire, in August
1996 the Russian and Chechen authorities negotiated a settlement that resulted
in a complete withdrawal of Russian troops and the holding of elections in
January 1997. The Organization for Security and Cooperation in Europe (OSCE)
played a major role in facilitating the negotiation. A peace treaty was
concluded in May 1997. Following an August 1999 attack into Dagestan by Chechan
separatists and the September 1999 bombings of two apartment buildings in
Moscow, the federal government launched a military campaign into Chechnya.
Russian authorities accused the Chechan government of failing to stop the growth
of the rebels activities and failure to curb widespread banditry and hostage
taking in the republic. By spring 2000, federal forces claimed control over
Chechan territory, but fighting continues as rebel fighters regularly ambush
Russian forces in the region.
GOVERNMENT AND POLITICAL CONDITIONS Duma elections were on December 19, 1999 and presidential elections March 26,
2000. While the Communist Party won a narrow plurality of seats in the Duma, the
pro-government party Unity and the centrist Fatherland-All Russia also won
substantial numbers of seats in the legislature. In the presidential election,
Vladimir Putin, named Acting President following the December 31 resignation of
Boris Yeltsin, was elected in the first round with 53% of the vote. Both the
presidential and parliamentary elections were judged generally free and fair by
international observers.
Russia is a federation, but the precise distribution of powers between the
central government and the regional and local authorities is still evolving. The
Russian Federation consists of 89 components, including two federal cities,
Moscow and St. Petersburg. The constitution explicitly defines the federal
government's exclusive powers, but it also describes most key regional issues as
the joint responsibility of the federal government and the Federation
components.
Judicial System In the past 3 years, the Russian Government has begun to reform the criminal
justice system and judicial institutions, including the reintroduction of jury
trials in certain criminal cases. Despite these efforts, judges are only
beginning to assert their constitutionally mandated independence from other
branches of government.
Human Rights Although the government has made progress in recognizing the legitimacy of
international human rights standards, the institutionalization of procedures to
safeguard these rights has lagged. Implementation of the constitutional
provisions for due process and timely trials, for example, has made little
progress. There are indications that the law is becoming an increasingly
important tool for those seeking to protect human rights; after a lengthy trial
and eight separate indictments, environmental whistleblower Alexander Nikitin
was acquitted of espionage charges relating to publication of material exposing
hazards posed by the Russian Navy's aging nuclear fleet earlier this year.
Nonetheless, serious problems remain. The judiciary is often subject to
manipulation by political authorities and is plagued by large case backlogs and
trial delays. Lengthy pretrial detention remains a serious problem. There are
credible reports of beating and torturing of inmates and detainees by law
enforcement and correctional officials. Prison conditions fall well below
international standards and, according to human rights groups, in 1996 between
10,000 and 20,000 prisoners and detainees died, most because of overcrowding,
disease, and lack of medical care.
Efforts to institutionalize official human rights bodies have been mixed. In
1996, human rights activist Sergey Kovalev resigned as chairman of the
Presidential Human Rights Commission to protest the government's record,
particularly the war in Chechnya. Parliament in 1997 passed a law establishing a
"human rights ombudsman," a position that is provided for in Russia's
constitution and is required of members of the Council of Europe, to which
Russia was admitted in February 1996. The Duma finally selected Duma deputy Oleg
Mironov in May 1998. A member of the Communist Party, Mironov resigned from both
the Party and the Duma after the vote, citing the law's stipulation that the
Ombudsman be nonpartisan. Because of his party affiliation, and because Mironov
had no evident expertise in the field of human rights, his appointment was
widely criticized at the time by human rights activists. International human
rights groups operate freely in Russia, although the government has hindered the
movements and access to information of some individuals investigating the war in
Chechnya.
The Russian Constitution provides for freedom of religion and the equality of
all religions before the law as well as the separation of church and state.
Although Jews and Muslims continue to encounter prejudice and societal
discrimination, they have not been inhibited by the government in the free
practice of their religion. High-ranking federal officials have condemned
anti-Semitic hate crimes, but law enforcement bodies have not effectively
prosecuted those responsible. The influx of missionaries over the past several
years has led to pressure by groups in Russia, specifically nationalists and the
Russian Orthodox Church, to limit the activities of these
"nontraditional" religious groups. In response, the Duma passed a new,
restrictive, and potentially discriminatory law in October 1997. The law is very
complex, with many ambiguous and contradictory provisions. The law's most
controversial provisions separates religious "groups" and
"organizations" and introduce a 15-year rule, which allows groups that
have been in existence for 15 years or longer to obtain accredited status.
Senior Russian officials have pledged to implement the 1997 law on religion in a
manner that is not in conflict with Russia's international human rights
obligations. Some local officials, however, have used the law as a pretext to
restrict religious liberty.
The constitution guarantees citizens the right to choose their place of
residence and to travel abroad. Some big-city governments, however, have
restricted this right through residential registration rules that closely
resemble the Soviet-era "propiska" regulations. Although the rules
were touted as a notification device rather than a control system, their
implementation has produced many of the same results as the propiska system. The
freedom to travel abroad and emigrate is respected although restrictions may
apply to those who have had access to state secrets. Recognizing this progress,
since 1994, President Clinton has found Russia to be in full compliance with the
provisions of the Jackson-Vanik amendment.
Principal Government Officials (A list of other government officials is not available at this time)
The Russian Federation maintains an embassy at 2650 Wisconsin Ave. NW,
Washington, DC 20007 (tel. 202-298-5700) and a consular section at 2641 Tunlaw
Road, Washington DC (tel. 202-939-8907/8913/8918). Russian consulates also are
located in New York, San Francisco, and Seattle.
ECONOMY Gross Domestic Product Monetary Policy Government Spending/Taxation Law Natural Resources Industry Agriculture Investment Foreign direct investment rose slightly in 1999, but remains small. Foreign
direct investment in Russia in 1999 was U.S.$2.9 billion, up from U.S.$2.8
billion in 1998, but still well below the U.S.$6.6 billion of FDI received in
1997.
A significant drawback for investment is the banking sector, which has
neither the resources, capability, nor the trust of the population to attract
substantial savings and intermediate them to productive investments. While ruble
lending has doubled since the October 1998 financial crisis, loans are still
only 28% of total bank assets, the same percentage as before the crisis. The CBR
has reduced its refinancing rate three times in 2000, to 33%, signaling its
interest in lower lending rates. Banks still perceive commercial lending as
risky, and some banks are inexperienced with assessing credit risk.
Trade Most analysts predict these trade trends will continue to some extent in
2000. The Government of Russia forecasts export increases of about 4%
and, as the ruble strengthens in real terms and purchasing power slowly
recovers, a slightly larger recovery in imports of about 8%. However, imports in
the first quarter remained flat at U.S.$9.4 billion, compared to U.S.$9.5
billion in the same period in 1999. The devaluation of the ruble and
difficulties in completing transactions through the Russian banking system
continue to depress imports. The combination of import duties, a 20% value-added
tax and excise taxes on imported goods (especially automobiles, alcoholic
beverages, and aircraft) and an import licensing regime for alcohol further
restrain demand for imports. Frequent changes in customs regulations also have
created problems for foreign and domestic traders and investors. Exports have
continued to benefit from higher oil prices, bolstered by higher natural gas
prices. In the first quarter of 2000, exports were up U.S.$6 billion, driving
the trade surplus to U.S.$12.1 billion from U.S.$6.1 billion higher than the
same period last year.
FOREIGN RELATIONS Russia has played an important role in helping mediate international
conflicts and has been particularly actively engaged in trying to promote a
peace following the conflict in Kosovo. Russia is a co-sponsor of the Middle
East peace process and supports UN and multilateral initiatives in the Persian
Gulf, Cambodia, Angola, the former Yugoslavia, and Haiti. Russia is a founding
member of the Contact Group and (since the Denver Summit in June 1997) a member
of the G-8. In November 1998, Russia joined APEC. Russia has contributed troops
to the NATO-led stabilization force in Bosnia and has affirmed its respect for
international law and OSCE principles. It has accepted UN and/or OSCE
involvement in instances of regional conflict in neighboring countries,
including the dispatch of observers to Georgia, Moldova, Tajikistan, and
Nagorno-Karabakh.
DEFENSE The challenge of this task has been magnified by difficult economic
conditions in Russia, which have resulted in reduced defense spending. This has
led to training cutbacks, wage arrears, and severe shortages of housing and
other social amenities for military personnel, with a consequent lowering of
morale, cohesion, and fighting effectiveness. The poor combat performance of the
Russian armed forces in the Chechen conflict in part reflects these breakdowns.
The actual strength of the Russian armed forces probably falls between 1.4
and 1.6 million and is scheduled to fall to 1.2 million by the end of 1999.
Weapons production in Russia has fallen dramatically over the past few years;
between 1988 and 1993, it fell by at least 50% for virtually every major weapons
system. Weapons spending in 1992 was approximately 75% less than in 1988. Almost
all of Russia's arms production is for sales to foreign governments, and
procurement of major end items by the Russian military has all but stopped.
About 70% of the former Soviet Union's defense industries are located in the
Russian Federation. A large number of state-owned defense enterprises are on the
brink of collapse as a result of cuts in weapons orders and insufficient funding
to shift to production of civilian goods, while at the same time trying to meet
payrolls. Many defense firms have been privatized; some have developed
significant partnerships with U.S. firms.
U.S.- RUSSIA RELATIONS The intensity and frequency of contacts between President Yeltsin and
President Clinton, most recently the Moscow Summit in August 1998, are
indicative of the strong commitment to working together on a broad range of
issues. These include European security, reducing the threat to our countries
posed by weapons of mass destruction, and economic cooperation, especially
American investment in Russia.
Economic Relations U.S.- Russia Joint Commission on Economic and Technological Cooperation.
Under the leadership of Vice President Gore and the Russian Prime Minister, the
U.S. and Russia are working to advance bilateral cooperation through nine
working committees and several working groups known collectively as the
U.S.-Russian Joint Commission on Economic and Technological Cooperation.
Committees address issues in the fields of science and technology, business
development, space, energy policy, environmental protection, health, defense
conversion, capital markets, and agriculture. In addition, the commission
provides a forum for high-level discussions of priority security and economic
issues. The commission held its 10th session in Washington in March 1998 and an
executive session in Washington in July 1999. Trade and Investment. In 1999, the U.S. trade deficit with Russia was
$3.96 billion, up $1.76 billion over 1998. U.S. merchandise exports to Russia
were nearly $1.85 billion in 1999. Russia was the United States' 41st largest
export market in 1999. U.S. imports from Russia were $5.81 billion in 1999,
making Russia the 28th largest supplier of U.S. imports. The 1992 U.S.-Russia
trade agreement provides mutual most-favored-nation status and includes
commitments on intellectual property rights protection. In 1992, the two
countries also signed treaties on the avoidance of double taxation and on
bilateral investment. In 1992, the two countries also signed treaties on the
avoidance of double taxation and on bilateral investment. As of spring 2000,
however, the Russian parliament has not ratified the bilateral investment
treaty. It has been ratified by the U.S. Senate.
The U.S. actively supports Russia's efforts to join the World Trade
Organization on commercially viable terms. Russia is currently in the process of
negotiating terms of accession to the WTO. By the end of 1999 it had completed
ten working party meetings. It tables its initial services market access offer
in October 1999 and has conducted negotiations on its goods market access offer.
These offers contain Russia's proposed commitments to maximum tariff rates and
opening of its markets to foreign providers of services. The U.S. actively
supported Russian membership in the Asia-Pacific Economic Cooperation (APEC)
forum. Russia became a member of APEC in November 1998.
Security Cooperation NATO/Russia Founding Act. Russia signed the NATO Partnership for Peace
initiative in June 1994. U.S. and Russian troops are serving together in the
Implementation Force in Bosnia and its successor, the Stabilization Force.
Building on these steps, NATO and Russia signed the NATO-Russia Founding Act on
May 27, 1997, in Paris. The act defines the terms of a fundamentally new and
sustained relationship in which NATO and Russia will consult and coordinate
regularly, and where appropriate, act jointly. Cooperation between NATO and
Russia exists in scientific and technical fields. Agreements/Cooperation/Nuclear Arms. The U.S. and Russia signed a
memorandum of understanding on defense cooperation in September 1993 that
institutionalized and expanded relations between defense ministries, including
establishing a broad range of military-to-military and scientist to scientist
contacts. The U.S. and Russia carried out a joint peacekeeping training exercise
in Totskoye, Russia, in September 1994. Based on the January 14, 1994, agreement
between Presidents Clinton and Yeltsin, the two nations stopped targeting their
strategic nuclear missiles at each other as of May 30, 1994. U.S. and Russian
security cooperation emphasizes strategic stability, nuclear safety, dismantling
nuclear weapons, preventing proliferation of weapons of mass destruction and
their delivery systems, and enhancing military-to-military contacts. The START I
Treaty was signed by the United States and the Soviet Union on July 31, 1991.
Five months later, the Soviet Union dissolved, and in May 1992, Belarus,
Kazakhstan, Russia and Ukraine signed the Lisbon Protocol to the START I Treaty,
making them Parties to the START I Treaty. Belarus, Kazakhstan and Ukraine have
also fulfilled their commitment to accede to the Nuclear Non-Proliferation
Treaty (NPT) as non-nuclear weapon states in the shortest possible time, and to
return all nuclear weapons on their territory to Russia for dismantlement. The
START I Treaty entered into force on December 5, 1994. START I requires
reductions in strategic offensive arms to 6,000 accountable warheads on each
side as of December 4, 2001. All Parties to the Treaty have been successful in
meeting the Treaty's reduction requirements.
START II. The START II Treaty was signed by the United States and
Russia on January 3, 1993. START II builds on the START I Treaty, requiring
reductions in two phases to 3,000-3,500 deployed strategic nuclear warheads on
each side, a two-thirds reduction from Cold War levels. At the September 1994
summit, the two nations agreed to begin removing nuclear warheads due to be
scrapped under START II immediately, once START I takes effect and the START II
Treaty is ratified by both countries, instead of taking the 9 years allowed. At
their May 1995 summit, Presidents Clinton and Yeltsin agreed on a set of
principles that would guide further discussion in the field of demarcation
between anti-ballistic missile systems and theater missile defenses. They also
agreed on steps to increase the transparency and irreversibility of nuclear arms
reduction and committed not to use newly produced fissile materials or to reuse
the fissile materials removed from nuclear weapons being eliminated and excess
to national security requirements in nuclear weapons. Since that time, all
strategic nuclear weapons have been removed from Ukraine, Belarus, and
Kazakhstan to Russia. Under START II, all heavy ICBMs and MIRVed ICBMs must be
eliminated from each side's deployed forces. In January 1996, the U.S. Senate
provided its advice and consent to ratification of the START II Treaty.
The deadline for START II reductions was extended to December 2007 by the
START II Protocol signed by the United States and Russia on September 26, 1997.
The Protocol has not been submitted to the U.S. Senate for ratification. On
April 14, 2000, the Russian Duma approved the START II Treaty and the START II
Protocol, and on May 5, President Putin signed the ratification document. In
ratifying the START II Treaty, the Russian Duma passed a federal law containing
a number of conditions. Among them is a requirement that the United States
ratify the START II Protocol before the START II Treaty can enter into force.
The Duma's ratification law and the relationship between the 1997 agreements,
including those related to the ABM Treaty, and START III and changes to the ABM
Treaty, will be considered before the START II Protocol is submitted to the
Senate for approval.
In March 1997, in Helsinki, Finland, Presidents Clinton and Yeltsin agreed
that a START III agreement would include the following basic elements, among
others:
In June 1999, in Cologne, Germany, Presidents Clinton and Yeltsin reaffirmed
their readiness to conduct new negotiations on strategic offensive arms aimed at
further reducing the level of strategic nuclear warheads on each side,
elaborating measures of transparency concerning existing strategic nuclear
warheads and their elimination, as well as other agreed technical and
organizational measures. Presidents Clinton and Yeltsin also agreed at this
Summit to begin discussions on START III and the ABM Treaty.
START III. As agreed at Cologne, the United States and Russia began
discussions on both START III and ABM issues during the summer of 1999. Since
then extensive discussions have been held on these matters at senior levels of
both governments. On July 23, 1999, the President signed into law H.R. 4, the
National Missile Defense (NMD) Act of 1999. We are continuing substantive
discussions with Russia on START III, in parallel with discussions on changes to
the ABM Treaty. These discussions are continuing and, with Russia's ratification
of START II, are expected to intensify.
CFE. Following ratification by Russia and the other NIS, the
Conventional Armed Forces in Europe Treaty entered into force on November 9,
1992. This treaty establishes comprehensive limits on key categories of military
equipment--tanks, artillery, armored combat vehicles, combat aircraft, and
combat helicopters--and provides for the destruction of weaponry in excess of
these limits. An adapted CFE Treaty was adopted at the November 1999 Istanbul
Summit. The adapted Treaty takes account of the changes in Europe since CFE was
signed. Politically, the process of adaptation has played a pivotal role in
managing Russian concerns and expectations regarding NATO enlargement, through
both the Madrid and Washington NATO Summits. NATO Allies addressed deeply-held
Russian concerns by accepting provisions in CFE which demonstrated that NATO did
not contemplate a massive eastward shift in peacetime military potential as a
result of enlargement. But this remains a very NATO-friendly Treaty.
Cooperative Threat Reduction (CTR). Often called Nunn-Lugar
assistance, this type of assistance is provided to Russia (as well as Belarus,
Kazakhstan and Ukraine) to aid in the dismantling of weapons of mass destruction
and to prevent the proliferation of such weapons. More than $730 million has
been allocated for assistance to Russia during fiscal years 1997 and 1998 under
this program, and 13 implementing agreements have been signed. Key projects have
included assistance in the elimination of strategic offensive arms ($184
million), design and construction of a fissile material storage facility ($127
million), provision of fissile material containers ($45 million), material
control and accounting and physical protection of nuclear materials ($51
million), and development of a chemical weapons destruction facility and
provision of equipment for a pilot laboratory for the safe and secure
destruction of chemical weapons ($106 million).
Under the highly enriched uranium agreement, the U.S. is purchasing uranium
from Russian weapons for use in power reactors. Also, both the U.S. and Russia
will cooperate to dispose of excess military plutonium. The U.S. also is
assisting Russia in the development of export controls, providing emergency
response equipment and training to enhance Russia's ability to respond to
accidents involving nuclear weapons, providing increased military-to-military
contacts.
In a multilateral effort (the European Union, Japan, and Canada also are
involved), the U.S. also has provided over $60 million to establish and support
the International Science and Technology Center (ISTC), which provides
alternative peaceful civilian employment opportunities to scientists and
engineers of the former Soviet Union involved with weapons of mass destruction
and their delivery systems.
U.S. Assistance to Russia Cumulative U.S. Assistance Figures. Since 1992, the U.S. Government
has allocated more than $8.2 billion in grant assistance to Russia, funding a
variety of programs in four key areas: security programs, humanitarian
assistance, economic reform and democratic reform. The U.S. Government is also
providing assistance in such areas as nuclear reactor safety and the
environment. The grant assistance provided by the U.S. Government to date can be
broken down as follows: almost $3.3 billion in security assistance (weapons
dismantlement and nonproliferation), over $2.2 billion in humanitarian
assistance, over $1.4 billion in economic reform programs, almost $650 million
in democratic reform programs, and $615 million in cross-sectoral and other
programs. The U.S. Government has also supported approximately $8.9 billion in
commercial financing and insurance for Russia. Nearly 40,000 Russians have
traveled to the United States under U.S. Government-funded training and exchange
programs. The annual level of FREEDOM Support Act-funded assistance for Russia,
which declined from a peak of $1.6 billion in FY 1994 to $95 million in FY 1997,
is about $178 million in FY 2000. For more detailed information on these
programs, please see the FY 1999 Annual Report to Congress on U.S. Government
Assistance to and Cooperative Activities with the New Independent States of the
Former Soviet Union, which is available on the State Department's website at the
following address: http://www.state.gov/www/regions/nis/nis_assist_index.html How U.S. Assistance Has Evolved. The U.S. Government's strategy for
assistance to Russia is based on the premise that Russia's transition to
democracy and free markets will be a long-term process. The U.S. will need to
remain engaged throughout this process, and therefore U.S. assistance emphasizes
activities that promote the establishment of lasting ties between Russians and
Americans at all levels of society. Over the past three years, the U.S.
assistance program has moved away from technical assistance to the central
government, although such assistance is still provided when it is appropriate
and will help to advance reform. An increasing proportion of U.S. assistance is
focussed at the regional and municipal level, where programs are helping to
build the infrastructure of a market economy, remove impediments to trade and
investment, and strengthen civil society. In general, U.S. assistance programs
in Russia are working at the grassroots level by bolstering small business
through training and enhanced availability of credit; expanding exchanges so
that more Russian citizens can learn about America's market democracy on a
first-hand basis; and increasing the number of partnerships between Russian and
U.S. cities, universities, hospitals, business associations, charities, and
other civic groups. In FY 1999, humanitarian assistance accounted for
approximately 60% of U.S. assistance to Russia, in response to the increased
need for such assistance in the aftermath of Russia's August 1998 financial
crisis. However, in FY 2000, security and nonproliferation programs represent
over two-thirds of U.S assistance to Russia.
Security programs help demilitarize facilities; eliminate weapons of mass
destruction and prevent their proliferation, as well as the proliferation of
weapons materials, delivery systems, technology and weapons expertise; and
enable compliance with arms accords.
U.S. Government-funded humanitarian assistance consists mainly of food
assistance provided by the U.S. Department of Agriculture (see below). The U.S.
Government also transports food, medical equipment and other humanitarian
assistance donated by U.S. private voluntary organizations (PVOs), as well as
Defense Department excess commodities.
Increasingly, U.S. Government-funded economic reform programs are focused in
Russia's regions. A limited amount of assistance is targeted at promoting
reforms at the national level, particularly with regard to tax administration
and Russia's efforts to accede to the World Trade Organization (WTO).
Democratic reform programs are helping Russians develop the building blocks
of a democratic society based on the rule of law by providing support to
non-governmental organizations (NGOs), independent media the judiciary and other
key institutions. To support this long-term generational transition, the U.S.
Government is increasingly promoting links between U.S. and Russian communities
and institutions, including universities, hospitals and professional
associations, and is establishing public-access Internet sites throughout
Russia. The U.S. Government will also be awarding a grant to support a
curriculum development program for the Institute of Public Administration and
Social Studies at Moscow State University. In addition, the U.S. Government is
helping Russia combat crime and corruption through cooperation with U.S. law
enforcement agencies and community-based groups.
Regional Initiative (RI). The RI concentrates an array of U.S.
government technical assistance, business development, and exchange programs in
a small group of progressive Russian regions, with the goal of helping to create
successful models of economic and political development at the regional level.
Over time, it is hoped that these regions will achieve broad-based economic
growth, attract outside investment, and build a strong civil society, and that
they will participate in efforts to disseminate their experience to other
regions of Russia. Three RI sites are up and running, in Novgorod, Samara, and
Khabarovsk/Sakhalin in the Russian Far East, and a new site is currently being
established in Tomsk.
Cooperative Threat Reduction (CTR) Program The Defense Department's
(DoD) CTR or "Nunn-Lugar" Program was initiated in FY 1992 to reduce
the threat posed to the United States by the weapons of mass destruction (WMD)
remaining on the territory of the former Soviet Union. CTR promotes
denuclearization and demilitarization, and seeks to prevent WMD proliferation.
Through FY 1999, DoD has notified the U.S. Congress of over $1.6 billion in
CTR assistance to Russia, of which over $1.2 billion has been obligated through
FY 1999 and over $790 million disbursed. Cooperation has evolved and
strengthened over the years in DoD's interaction with the Russian ministries
administering the CTR program, including the Ministry of Defense (MoD), the
Ministry of Atomic Energy (MinAtom), the now-disbanded Ministry for Defense
Industry (MDI), and the Ministry of Economy (MinEcon). In June 1999, the U.S.
and Russian Governments extended the CTR Umbrella Agreement through 2006.
Since FY 1997, the CTR Program has focused increasingly on Russia. About $383
million of the $440.4 million appropriated for CTR in FY 1999 was earmarked for
Russia. To position Russia to reduce its force structure to START II or
potential START III levels, DoD, MoD and MinEcon agreed in December 1997 on new
CTR projects to support the required missile systems dismantlement, strategic
submarine elimination, and enhance nuclear weapons and fissile material
security. Several of these projects are underway. In 1999, projects were being
developed to help the Russians process and package fissile material in the
post-dismantlement stage and to prevent the proliferation of biological weapons
(BW) expertise and technology.
The CTR Program is providing Russia equipment, training, services and
logistical support to expedite the elimination of strategic offensive arms
pursuant to the START Treaties. This includes assistance with liquid rocket-fuel
disposition, SLBM launcher and associated submarine elimination, solid
rocket-motor elimination, SS-18 and heavy-bomber dismantlement, and other
projects. This also includes provision of equipment for emergency support in
case of an accident involving the transport or elimination of missiles. Under
the CTR Program, the U.S. is helping Russia destroy its CW stockpile and
associated infrastructure. Efforts have focused on designing a CW destruction
facility at Shchuchye that the U.S. Government plans to help construct.
Construction is under way on a Central Analytical Laboratory (CAL) that will
enhance Russia's ability to conduct chemical-agent monitoring at CW storage and
destruction sites. The U.S. Government procured and delivered three mobile
analytical laboratories to support Russian CW destruction projects. U.S.
Government-funded efforts also continued to eliminate CW infrastructure at the
KhimProm Volgograd and Novocheboksarsk chemical complexes.
Construction continues on a facility for the storage of fissile material
derived from dismantled Russian weapons at Mayak in the Southern Urals. DoD is
providing design assistance, construction support and equipment, and facility
equipment. The U.S. Government is also providing Russia's Ministry of Atomic
Energy (MinAtom) with containers for the transport and storage of fissile
materials from dismantled weapons. Production of the containers began in October
1995, and initial shipments to Russia began in December 1995. Through FY 1999,
more than 32,000 fissile material containers have been produced and delivered.
CTR Weapons Protection Control and Accounting (WPC&A) Program.
This program is improving security of nuclear weapons during transportation and
interim storage. The project was started in April 1995 under two CTR
implementing agreements with Russia. Assistance provided includes
supercontainers, railcar upgrades, emergency support equipment, automated
inventory control and management systems, computer modeling, a personnel
reliability program, 50 sets of "quick-fix" fencing and sensors for
storage sites, and the development of a Security Assessment and Training Center
to test and evaluate new security systems for storage sites. This project is
planned to expand to protect over 70 additional storage sites.
CTR Materials Protection, Control and Accounting Program. Since 1993,
the United States and Russia have worked together to prevent the theft or loss
of nuclear material by improving nuclear materials protection, control, and
accounting (MPC&A). MPC&A improvements are designed to keep nuclear
materials secured in the facilities that are authorized to contain them, and are
the first line of defense against nuclear smuggling that could lead to nuclear
proliferation and/or nuclear terrorism. DOE took over the program from DOD and
is seeking to enhance the security of weapons-grade fissile materials at more
than 40 sites in Russia.
In addition, under the highly enriched uranium agreement, the U.S. is
purchasing uranium from Russian weapons for use in power reactors. Also, both
the U.S. and Russia will cooperate to dispose of excess military plutonium.
Export Control Assistance. Since the early 1990s, the U.S. has
provided assistance to Russia to help it develop more effective export control
systems and capabilities in order to prevent, deter and detect the potential
proliferation of weapons of mass destruction (WMD) and associated materials. The
objective is to help Russia build export control institutions, infrastructure
and legislation to help prevent weapons proliferation. Initial funding from the
CTR program has been augmented by funds from the Departments of Commerce,
Energy, State and Treasury (Customs Service). In FY 1996, overall responsibility
for export control assistance shifted to the Department of State, which provides
policy direction and coordinates all agencies providing export control and
border security assistance, capitalizing in particular on the unique
capabilities of the U.S. Coast Guard to support export control and border
security assistance programs. Recent State Department funded programs with
Russia include supporting the Russian Center for Export Controls (CEC) work with
the Department of Commerce to install internal compliance programs (ICPs) in key
Russian defense and high-technology enterprises and facilitating the adoption of
a new, comprehensive export control law and other legal/regulatory changes in
Russia. DOE export control efforts in Russia include traditional activities such
as workshops, studies and regulatory development. DOE also initiated the Second
Line of Defense program for Russia to combat the trafficking of illicit nuclear
materials across border and control points to strengthen its overall capability
to prevent nuclear materials, equipment and technology from getting into the
hands of would-be proliferators. This program entails procuring
Russian-manufactured detection equipment for key border crossings and training
programs for Russian Customs officials.
International Science and Technology Center (ISTC). In a multilateral
effort involving the European Union, Japan, and Canada, the U.S. has provided
over $100 million to the Moscow-based ISTC for redirection activities in Russia
in addition to millions of dollars in contributions from the EU, Canada, Norway,
Japan and South Korea. The ISTC provides alternative peaceful civilian
employment opportunities to scientists and engineers of the former Soviet Union
involved with weapons of mass destruction and their delivery systems. To date,
the ISTC has funded more than 500 projects involving more than 20,000 Russian
scientists.
Biotechnical Redirection Program. In FY 1999, the U.S. Government
implemented a State Department-led pilot project aimed at increasing
transparency in former Soviet biological weapons (BW) facilities and redirecting
their scientists to civilian commercial, agricultural and public health
activities. All activity under this project is subject to strict oversight by an
interagency working group. Facilities and government officials in countries
where the U.S. Government is pursuing redirection activities are explicitly
informed that any cooperation with countries of proliferation concern or
terrorist entities, or any behavior inconsistent with the Biological and Toxin
Weapons Convention (BWC), would have an immediate and negative impact on U.S.
Government assistance. The majority of U.S. Government-funded redirection
activities are taking place under the auspices of the International Science and
Technology Center (ISTC), which has access to facilities, provides tax-exempt
assistance directly to scientists, and can engage multilateral funding. Agencies
involved in these efforts include the U.S. Departments of State, Energy (DOE),
Defense (DoD), Agriculture (USDA) and Health and Human Services (HHS). Most of
these activities are oriented toward Russian institutes and scientists. The
State Department has allocated over $22 million since FY 1998 for these
activities. DoD also has initiated a CTR program to fund collaborative
biotechnical research with former biological weapons scientists to prevent the
proliferation of biological weapons expertise and technology, increase access to
Russian scientists, and to enhance the transparency of their work. CTR also is
enhancing the security of Russian biotechnical facilities through initiation in
FY 1999 of a Biological Material Protection, Control and Accountability Program.
Implementing Agencies U.S. Department of State--Public Diplomacy Exchanges (formerly the U.S.
Information Agency). Approximately 27,000 Russians have traveled to the
United States on USIA-funded exchanges since 1992. Public diplomacy exchanges
promote the growth of democracy and civil society, encourage economic reform and
growth of a market economy in Russia. USIA's professional and academic exchanges
cover such diverse fields as journalism, public administration, local
government, business management, education, political science, and civic
education.
Library of Congress. In FY 2000, the Russian Leadership Program will
bring 1,800 Russians from throughout Russia to the United States for short-term
study tours, including up to 150 members of the Russian Parliament for meetings
with their counterparts in the U.S. Congress.
U.S. Department of Commerce. The Special American Business Internship
Training (SABIT) Program places Russian managers for short-term internships with
U.S. companies. To date, over 1,000 Russians have participated in the SABIT
Program. The Commerce Department also operates the Business Information Service
for the New Independent States (BISNIS), which provides market information,
trade leads, and partnering services to U.S. companies interested in the Russian
market.
U.S. Export-Import Bank (Eximbank). Eximbank has approved more than
$3.6 billion in loans, loan guarantees, and insurance for transactions in Russia
since 1991. Of this total, more than $1 billion was approved under its Oil and
Gas Framework Agreement.
U.S. Overseas Private Investment Corporation (OPIC). OPIC has provided
more than $4.0 billion in loans, loan guarantees, and political investment
insurance to American companies investing in Russia.
Trade and Development Agency (TDA). TDA has approved approximately $55
million in funding for feasibility studies on more than 135 investment projects.
U.S. Department of Agriculture (USDA). In FY 1999, in response to a
request by the Russian Government, USDA provided more than 3.7 million metric
tons of food valued at more than $1 billion, including 100,000 metric tons of
nonperishable food donated through U.S. private voluntary organizations (PVOs),
1.7 million tons of wheat on a grant basis, and 1.55 million tons of commodities
(including beef, pork, poultry, corn, rice, wheat and soybeans) on a
concessional basis under USDA's P.L. 480, Title I Program. USDA also donated
15,000 tons of corn and vegetable seeds to the Russian Government for the 1999
planting season. In FY 2000, USDA will be providing approximately $225 million
in food assistance to Russia, which will consist of approximately 300,000 metric
tons of government-to-government commodities targeted at institutions such as
orphanages and hospitals, and approximately 200,000 metric tons of commodities
provided by U.S. PVOs. In addition, USDA provides training to Russian
agriculturists and agricultural faculty through its Cochran Fellowship and
Faculty Exchange Programs, with the goal of helping to familiarize the Russian
agricultural sector with Western-style agribusiness management, marketing, and
other issues, while at the same time increasing U.S. agricultural exports to
Russia. Since 1992, over 500 Russians have traveled to the U.S. under these two
programs.
U.S. Department of Defense (DoD). DoD implements the majority of the
U.S. Government's security-related assistance programs through its Cooperative
Threat Reduction (CTR) Program (see above). DoD also implements the Foreign
Military Financing (FMF) and International Military Education and Training
(IMET) programs in support of the Partnership for Peace.
U.S. Department of Energy (DOE). DOE funds and implements a wide range
of programs in the security area, including the provision of Material Protection
Control and Accounting (MPC& A) assistance to secure and prevent
proliferation of nuclear materials and plutonium disposition assistance. DOE is
also focusing on preventing proliferation of weapons expertise, facilitating the
downsizing of Russia's nuclear cities, and improving the safety of Russia's
nuclear reactors.
Eurasia Foundation. The Eurasia Foundation, a private, non-profit,
grant-making organization supported by the U.S. Government and private
foundations, has awarded more than 1,600 grants totaling more than $40 million
to Russian non-governmental organizations (NGOs) and U.S.-Russian NGO
partnerships since 1993. The Foundation's grants have been targeted in three
main programmatic areas: economic reform, governmental reform and the non-profit
sector, and media and communications. The Foundation has also implemented
targeted grant initiatives to address specific issues, such as the rule of law
and alternative dispute resolution.
Principal U.S. Embassy Officials The U.S. embassy is located in Russia at Bolshoy Devyatinskiy Pereulok,
Number 8, 121099 Moscow (tel. [7](095) 728-5000; fax: [7](095) 728-5090).
Consulates General In Moscow, the U.S. Commercial Office is located at Bolshaya Molchanovka
23/38 (tel. [7](095) 737-5030, fax: [7](095) 737-5033)
TRAVEL AND BUSINESS INFORMATION Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at (202) 647-5225. For after-hours emergencies, Sundays and holidays, call 202-647-4000. Passport information can be obtained by calling the National Passport Information Center's automated system ($.35 per minute) or live operators 8 a.m. to 8 p.m. (EST) Monday-Friday ($1.05 per minute). The number is 1-900-225-5674 (TDD: 1-900-225-7778). Major credit card users (for a flat rate of $4.95) may call 1-888-362-8668 (TDD: 1-888-498-3648). It also is available on the internet. Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800. Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication). U.S. citizens who are long-term visitors or traveling in dangerous areas are encouraged to register at the U.S. embassy upon arrival in a country (see "Principal U.S. Embassy Officials" listing in this publication). This may help family members contact you in case of an emergency. |
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