The U.S. has a strong continuing interest in Russia's economic recovery and future growth. Our policy is to maintain active engagement and to provide support when Russia adopts meaningful reforms. In Moscow in September, President Clinton pledged to support real Russian market reforms. Political and economic stabilization will be welcome but, frankly, will not be enough to secure Russia's future. Uncertainty and decline will continue until certain basic structural reforms are initiated.
Tax reform is one.
Another top priority, which the Primakov government appears to share, is the need to attract foreign direct investment for Russia's economic recovery. Impact of the Economic Crisis on Energy Investment Russia's economic crisis has had a significant effect on the U.S. business community. U.S. companies, the largest foreign investors in Russia, have estimated their losses at upwards of half a billion dollars thus far. For many of our companies, it is difficult to meet the payroll, to pay for imports and to carry out basic business transactions. As a result, many U.S. companies report drastic cutbacks, production shutdowns, and complete distribution halts.