[Deb Palmieri on Russia Table of Contents] The following article was published in the Russian Commerce News, March-April 2000. The Russian Commerce News is the official publication of The Russian-American Chamber of Commerce®. |
Well, it's over. And it's official. The Russian presidential elections are history. Vladimir Putin on March 26 was elected the new president of Russia by a clear majority vote of 53%, and with a voter turnout of almost 69%. The Yeltsin period has also officially ended, following almost a decade-long reign that marked the beginning of modern democracy and market reform in Russia. Russia has now entered a vitally significant period in its new millennium history. It's a critical point in the development of the modern Russian state, as it struggles to define itself as a nation; place its economy on a stable and prosperous footing and define its modus operandi with other states in the global arena.
There are positive signs of change already. A strong economic recovery is unquestionably underway. Industrial output is on the upswing as indicated by first quarter data, and there has been impressive growth in industries including construction and retail sales. Foreign exchange reserves grew to $15bn by late March. It looks like Russian GDP will record a significant growth not only for the quarter, but throughout the rest of the year. Not only in areas of economics is change underway, but elsewhere. Putin was an instrumental influence in the recent Russian parliament ratification of the START II nuclear weapons reduction treaty, which passed the Duma by a clear majority. He has taken a hard line against criminal activity in society and commerce, and is leading much needed tax reform measures, particularly to incentivize small business entrepreneurial activity. The Putin administration is good news for the foreign investment community and changes the new president is making to improve the business environment are all in the right direction so far.
The need for change is reciprocal and applies to the American side as well. We need to push for much needed changes in our thinking on Russia and we need to reform outmoded legislation and policies that hinder business development. Changes we need to advocate center around various government trade and investment barriers to doing business with Russia, including restrictive legislation; unnecessary or outmoded export controls; and cumbersome government approval processes for Russian business partner entry into the U.S. This latter point alone constitutes a significant trade barrier that is holding up progress on projects and costing companies money. Americans need to get Russian partners here for an assortment of needs: training, strategic planning and other routine commercial matters. But often visa applications are delayed, and many are denied without adequate explanation.
Many companies are complaining that such delays are threatening projects with irreparable damage, not to mention the cost-centers these delays cause. Many feel the existent process is sub-optimal, and that the visa-granting system needs to change. The process needs to become more efficient, open, transparent, and driven by clear policies and guidelines. This includes clearly articulated procedures for appeals upon denials. If the government could streamline this process alone, trade and investment dollars would increase substantially.
Both sides, in very specific ways, need to tackle, one by one, issues like this whereby committed people can make significant strides towards opening the door for trade and investment.
Someday, we'll trade with Russia like we do with Japan, Canada and Mexico. It's just a matter of change, and a matter of time. Now is the perfect opportunity to normalize and advance commercial ties.
Deborah Anne Palmieri
Russian Commerce News, March-April 2000
Copyright 2001 The Russian-American Chamber of Commerce®