II
Calendar No. 543
107TH CONGRESS
2D SESSION
H. R. 2121
IN THE SENATE OF THE UNITED STATES
DECEMBER 12, 2001
Received; read twice and referred to the Committee on Foreign Relations
AUGUST 1, 2002
Reported by Mr. BIDEN, with an amendment and an amendment to the title
[Strike out all after the enacting clause and insert the part printed in italic]
AN ACT
To make available funds under the Foreign Assistance Act
of 1961 to expand democracy, good governance, and
anti-corruption programs in the Russian Federation in
order to promote and strengthen democratic government
and civil society in that country and to support inde-
pendent media.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Russian Democracy
Act of 2001’’.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—Congress makes the following find-
ings:
(1) Since the dissolution of the Soviet Union,
the leadership of the Russian Federation has pub-
licly committed itself to building—
(A) a society with democratic political in-
stitutions and practices, the observance of uni-
versally recognized standards of human rights,
and religious and press freedom; and
(B) a market economy based on inter-
nationally accepted principles of transparency,
accountability, and the rule of law.
(2) In order to facilitate this transition, the
international community has provided multilateral
and bilateral technical assistance, and the United
States’ contribution to these efforts has played an
important role in developing new institutions built
on democratic and liberal economic foundations and
the rule of law.
(3)(A) Since 1992, United States Government
democratic reform programs and public diplomacy
programs, including training, small grants, and tech-
nical assistance to independent television, radio, and
print media across the Russian Federation, have
strengthened nongovernment-owned media, provided
access to and training in the use of the Internet,
brought
nearly
40,000
Russian
citizens
to
the
United States, and have led to the establishment of
over 65,000 nongovernmental organizations, thou-
sands of vibrant independent media outlets, and nu-
merous political parties.
(B) These efforts contributed to the substan-
tially free and fair Russian parliamentary elections
in 1995 and 1999 and Presidential elections in 1996
and 2000.
(4) The United States has assisted Russian ef-
forts to replace its centrally planned, state-controlled
economy with a market economy and helped create
institutions and infrastructure for a market economy
by
encouraging
the
transparent
privatization
of
state-owned enterprises. Approximately two-thirds of
the Russian Federation’s gross domestic product is
now generated by the private sector.
(5)(A) The United States fostered grassroots
entrepreneurship in the Russian Federation by fo-
cusing United States economic assistance on small-
and medium-sized businesses and by providing train-
ing, consulting services, and small loans to more
than 250,000 Russian entrepreneurs.
(B) There are now more than 900,000 small
businesses in the Russian Federation, producing 12
to 15 percent of the gross domestic product of the
Russian Federation.
(C) United States-funded programs help to
fight corruption and financial crime, such as money
laundering, by helping to—
(i) establish a commercial legal infrastruc-
ture;
(ii) develop an independent judiciary;
(iii) support the drafting of a new criminal
code, civil code, and bankruptcy law;
(iv) develop a legal and regulatory frame-
work for the Russian Federation’s equivalent of
the United States Securities and Exchange
Commission;
(v) support Russian law schools;
(vi) create legal aid clinics; and
(vii) bolster law-related activities of non-
governmental organizations.
(6) Because the capability of Russian demo-
cratic forces and the civil society to organize and de-
fend democratic gains without international support
is uncertain, and because the gradual integration of
the Russian Federation into the global order of free-
market, democratic nations will further enhance
Russian cooperation with the United States on a
wide-range
of
political,
economic,
and
security
issues, the success of democracy in Russia is in the
national security interest of the United States, and
the United States Government should develop a far-
reaching and flexible strategy aimed at strength-
ening Russian society’s support for democracy and a
market economy, particularly by enhancing Russian
democratic institutions and education, promoting the
rule of law, and supporting Russia’s independent
media.
(7) Since the tragic events of September 11,
2001, the Russian Federation has stood with the
United States and the civilized world in the struggle
against terrorism and has cooperated in the war in
Afghanistan by sharing intelligence and through
other means.
(b) PURPOSES.—The purposes of this Act are—
(1) to strengthen and advance institutions of
democratic government and of a free and inde-
pendent media and to sustain the development of an
independent civil society in the Russian Federation
based on religious and ethnic tolerance, internation-
ally recognized human rights, and an internationally
recognized rule of law; and
(2) to focus United States foreign assistance
programs on using local expertise and giving local
organizations a greater role in designing and imple-
menting such programs, while maintaining appro-
priate oversight and monitoring.
SEC. 3. UNITED STATES POLICY TOWARD THE RUSSIAN
FEDERATION.
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that the United States Government should—
(1) recognize that a democratic and economi-
cally stable Russian Federation is inherently less
confrontational and destabilizing in its foreign policy
and therefore that the promotion of democracy in
Russia is in the national security interests of the
United States; and
(2) continue and increase assistance to the
democratic forces in the Russian Federation, includ-
ing the independent media, regional administrations,
democratic political parties, and nongovernmental
organizations.
(b) STATEMENT OF POLICY.—It shall be the policy
of the United States—
(1) to facilitate Russia’s integration into the
Western community of nations, including supporting
the establishment of a stable democracy and a mar-
ket economy, and also including Russia’s member-
ship in the appropriate international institutions;
(2) to engage the Government of Russian Fed-
eration and Russian society in order to strengthen
democratic reform and institutions, and to promote
good governance principles based on the internation-
ally recognized norms of transparency in business
practices, the rule of law, religious freedom, and
human rights;
(3) to advance a dialog between United States
Government officials and private sector individuals
and representatives of the Government of the Rus-
sian Federation regarding Russian integration into
the Western community of nations;
(4) to encourage United States Government of-
ficials and private sector individuals to meet regu-
larly with democratic activists, human rights activ-
ists, representatives of the independent media, rep-
resentatives of nongovernmental organizations, civic
organizers, and reform-minded politicians from Mos-
cow and the various regions of the Russian Federa-
tion;
(5) to incorporate democratic reforms, the pro-
motion of an independent media, and economic re-
forms in the broad United States agenda with the
Government of the Russian Federation;
(6) to encourage the Government of the Rus-
sian Federation to address cross-border issues, in-
cluding the environment, crime, trafficking, and cor-
ruption in a cooperative and transparent manner
consistent with internationally recognized and ac-
cepted principles of the rule of law;
(7) to consult with the Government of the Rus-
sian Federation and the Russian Parliament on the
adoption of economic and social reforms necessary to
sustain Russian economic growth and to ensure Rus-
sia’s transition to a fully functioning market econ-
omy;
(8) to persuade the Government of the Russian
Federation to honor its commitments made to the
Organization for Security and Cooperation in Eu-
rope (OSCE) at the November 1999 Istanbul Con-
ference and to conduct a genuine good neighbor pol-
icy toward the other independent states of the
former Soviet Union in the spirit of internationally
accepted principles of regional cooperation; and
(9) to encourage the G–7 partners and inter-
national financial institutions, including the World
Bank, the International Monetary Fund, and the
European Bank for Reconstruction and Develop-
ment, to develop financial safeguards and trans-
parency practices in lending to the Russian Federa-
tion.
SEC. 4. AMENDMENTS TO THE FOREIGN ASSISTANCE ACT
OF 1961.
(a) AMENDMENTS.—
(1) DEMOCRACY AND RULE OF LAW.—Section
498(2) of the Foreign Assistance Act of 1961 (22
U.S.C. 2295(2)) is amended—
(A) in the heading, by striking ‘‘DEMOC-
RACY’’ and inserting ‘‘DEMOCRACY AND RULE
OF LAW’’;
(B) by striking subparagraphs (E) and
(G);
(C) by redesignating subparagraph (F) as
subparagraph (I);
(D) by inserting after subparagraph (D)
the following:
‘‘(E) development and support of grass-
roots and nongovernmental organizations pro-
moting
democracy,
the
rule
of
law,
trans-
parency,
and
accountability
in
the
political
process, including grants in small amounts to
such organizations;
‘‘(F) international exchanges to promote
greater understanding by Russian Federation
citizens on how democracy, public policy proc-
ess, market institutions, and an independent ju-
diciary function in Western societies;
‘‘(G) political parties committed to pro-
moting democracy, human rights, and economic
reforms;
‘‘(H) support for civic organizations com-
mitted to promoting human rights; and’’; and
(E) by adding at the end the following:
‘‘(J) strengthened administration of justice
through programs and activities carried out in
accordance with section 498B(e), including—
‘‘(i) support for nongovernmental or-
ganizations, civic organizations, and polit-
ical parties that favor a strong and inde-
pendent judiciary based on merit;
‘‘(ii) support for local organizations
that work with judges and law enforcement
officials in efforts to achieve a reduction in
the number of pretrial detainees; and
‘‘(iii) support for the creation of Rus-
sian legal associations or groups that pro-
vide training in human rights and advo-
cacy,
public
education
with
respect
to
human rights-related laws and proposed
legislation, and legal assistance to persons
subject
to
improper
government
inter-
ference.’’.
(2) INDEPENDENT MEDIA.—Section 498 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2295) is
amended—
(A)
by
redesignating
paragraphs
(3)
through (13) as paragraphs (4) though (14),
respectively; and
(B) by inserting after paragraph (2) the
following:
‘‘(3) INDEPENDENT MEDIA.—Developing a free
and independent media, including—
‘‘(A) supporting all forms of non-state-
owned media reporting, including print, radio,
and television;
‘‘(B) providing special support for, and un-
restricted public access to, nongovernmental
Internet-based sources of information, dissemi-
nation and reporting, including providing tech-
nical and other support for web radio services,
providing computers and other necessary re-
sources for Internet connectivity and training
new Internet users in nongovernmental and
other civic organizations on methods and uses
of Internet-based media; and
‘‘(C) training in journalism, including in-
vestigative journalism techniques which educate
the public on the costs of corruption and act as
a deterrent against corrupt officials.’’.
(b) CONFORMING AMENDMENT.—Section 498B(e) of
such Act is amended by striking ‘‘paragraph (2)(G)’’ and
inserting ‘‘paragraph (2)(J)’’.
SEC. 5. ACTIVITIES TO SUPPORT THE RUSSIAN FEDERA-
TION.
(a) ASSISTANCE PROGRAMS.—In providing assistance
to the Russian Federation under chapter 11 of part I of
the Foreign Assistance Act of 1961 (22 U.S.C. 2295 et
seq.), the President is authorized to carry out the fol-
lowing specific activities:
(1) Work with the Government of the Russian
Federation, the Duma, and representatives of the
Russian Federation judiciary to help implement a
revised and improved code of criminal procedure and
other laws.
(2) Establish civic education programs relating
to democracy, public policy, the rule of law, and the
importance of an independent media, including the
establishment of ‘‘American Centers’’ and public pol-
icy schools at Russian universities and programs by
universities in the United States to offer courses
through Internet-based off-site learning centers at
Russian universities.
(3) Support the Regional Initiatives (RI) pro-
gram, which provides targeted assistance in those re-
gions of the Russian Federation that have dem-
onstrated commitment to reform, democracy, and
the rule of law, and which promote the concept of
such programs as a model for all regions of the Rus-
sian Federation.
(b) RADIO FREE EUROPE/RADIO LIBERTY
AND
VOICE OF AMERICA.—Radio Free Europe/Radio Liberty
and the Voice of America should use new and innovative
techniques, in cooperation with local independent media
sources, to disseminate information throughout the Rus-
sian Federation relating to democracy, free-market eco-
nomics, the rule of law, and human rights.
SEC. 6. AUTHORIZATION OF ASSISTANCE FOR DEMOCRACY,
INDEPENDENT
MEDIA,
AND
THE
RULE
OF
LAW.
Of the amounts made available to carry out the provi-
sion of chapter 11 of part I of the Foreign Assistance Act
of 1961 (22 U.S.C. 2295 et seq.) and the Freedom for
Russia and Emerging Eurasian Democracies and Open
Markets Support Act of 1992 for fiscal year 2002, not
less than $50,000,000 is authorized to be available for the
activities authorized by paragraphs (2) and (3) of section
498 of the Foreign Assistance Act of 1961, as amended
by section 4(a) of this Act.
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Russian Democracy Act
of 2002’’.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—Congress makes the following findings:
(1) Since the dissolution of the Soviet Union, the
leadership of the Russian Federation has publicly
committed itself to building—
(A) a society with democratic political in-
stitutions and practices, the observance of uni-
versally recognized standards of human rights,
and religious and press freedom; and
(B) a market economy based on inter-
nationally accepted principles of transparency,
accountability, and the rule of law.
(2) In order to facilitate this transition, the
international community has provided multilateral
and bilateral technical assistance, and the United
States’ contribution to these efforts has played an im-
portant role in developing new institutions built on
democratic and liberal economic foundations and the
rule of law.
(3)(A) Since 1992, United States Government
democratic reform programs and public diplomacy
programs, including training, and small grants have
provided access to and training in the use of the
Internet, brought nearly 40,000 Russian citizens to
the United States, and have led to the establishment
of more than 65,000 nongovernmental organizations,
thousands of independent local media outlets, despite
governmental opposition, and numerous political par-
ties.
(B) These efforts contributed to the substantially
free and fair Russian parliamentary elections in
1995 and 1999.
(4) The United States has assisted Russian ef-
forts to replace its centrally planned, state-controlled
economy with a market economy and helped create
institutions and infrastructure for a market economy.
Approximately two-thirds of the Russian Federation’s
gross domestic product is now generated by the pri-
vate sector, and the United States recognized Russia
as a market economy on June 7, 2002.
(5)(A) The United States has fostered grassroots
entrepreneurship in the Russian Federation by focus-
ing United States economic assistance on small- and
medium-sized businesses and by providing training,
consulting services, and small loans to more than
250,000 Russian entrepreneurs.
(B) There are now more than 900,000 small
businesses in the Russian Federation, producing 12 to
15 percent, depending on the estimate, of the gross do-
mestic product of the Russian Federation.
(C) United States-funded programs have contrib-
uted to fighting corruption and financial crime, such
as money laundering, by helping to—
(i) establish a commercial legal infrastruc-
ture;
(ii) develop an independent judiciary;
(iii) support the drafting of a new criminal
code, civil code, and bankruptcy law;
(iv) develop a legal and regulatory frame-
work for the Russian Federation’s equivalent of
the United States Securities and Exchange Com-
mission;
(v) support Russian law schools;
(vi) create legal aid clinics; and
(vii) bolster law-related activities of non-
governmental organizations.
(6) Because the capability of Russian democratic
forces and the civil society to organize and defend
democratic gains without international support is un-
certain, and because the gradual integration of the
Russian Federation into the global order of free-mar-
ket, democratic nations would enhance Russian co-
operation with the United States on a wide range of
political, economic, and security issues, the success of
democracy in Russia is in the national security inter-
est of the United States, and the United States Gov-
ernment should develop a far-reaching and flexible
strategy aimed at strengthening Russian society’s
support for democracy and a market economy, par-
ticularly by enhancing Russian democratic institu-
tions and education, promoting the rule of law, and
supporting Russia’s independent media.
(7) Since the tragic events of September 11,
2001, the Russian Federation has stood with the
United States and the rest of the civilized world in
the struggle against terrorism and has cooperated in
the war in Afghanistan by sharing intelligence and
through other means.
(8) United States-Russia relations have im-
proved, leading to a successful summit between Presi-
dent Bush and President Putin in May 2002, result-
ing in a ‘‘Foundation for Cooperation’’.
(b) PURPOSES.—The purposes of this Act are—
(1) to strengthen and advance institutions of
democratic government and of free and independent
media, and to sustain the development of an inde-
pendent civil society in the Russian Federation based
on religious and ethnic tolerance, internationally rec-
ognized human rights, and an internationally recog-
nized rule of law; and
(2) to focus United States foreign assistance pro-
grams on using local expertise and to give local orga-
nizations a greater role in designing and imple-
menting such programs, while maintaining appro-
priate oversight and monitoring.
SEC. 3. UNITED STATES POLICY TOWARD THE RUSSIAN
FEDERATION.
(a) SENSE OF CONGRESS.—It is the sense of Congress
that the United States Government should—
(1) recognize that a democratic and economically
stable 
Russian 
Federation 
is 
inherently 
less
confrontational and destabilizing in its foreign policy
and therefore that the promotion of democracy in
Russia is in the national security interests of the
United States; and
(2) continue and increase assistance to the demo-
cratic forces in the Russian Federation, including the
independent media, regional administrations, demo-
cratic political parties, and nongovernmental organi-
zations.
(b) STATEMENT OF POLICY.—It shall be the policy of
the United States—
(1) to facilitate Russia’s integration into the
Western community of nations, including supporting
the establishment of a stable democracy and a market
economy within the framework of the rule of law and
respect for individual rights, including Russia’s mem-
bership in the appropriate international institutions;
(2) to engage the Government of the Russian
Federation and Russian society in order to strengthen
democratic reform and institutions, and to promote
transparency and good governance in all aspects of
society, including fair and honest business practices,
accessible and open legal systems, freedom of religion,
and respect for human rights;
(3) to advance a dialogue among United States
Government officials, private sector individuals, and
representatives of the Government of the Russian Fed-
eration regarding Russia’s integration into the West-
ern community of nations;
(4) to encourage United States Government offi-
cials and private sector individuals to meet regularly
with democratic activists, human rights activists, rep-
resentatives of the independent media, representatives
of nongovernmental organizations, civic organizers,
church officials, and reform-minded politicians from
Moscow and all other regions of the Russian Federa-
tion;
(5) to incorporate democratic reforms, the pro-
motion of independent media, and economic reforms
in a broader United States dialogue with the Govern-
ment of the Russian Federation;
(6) to encourage the Government of the Russian
Federation to address, in a cooperative and trans-
parent manner consistent with internationally recog-
nized and accepted principles, cross-border issues, in-
cluding the nonproliferation of weapons of mass de-
struction, environmental degradation, crime, traf-
ficking, and corruption;
(7) to consult with the Government of the Rus-
sian Federation and the Russian Parliament on the
adoption of economic and social reforms necessary to
sustain Russian economic growth and to ensure Rus-
sia’s transition to a fully functioning market economy
and membership in the World Trade Organization;
(8) to persuade the Government of the Russian
Federation to honor its commitments made to the Or-
ganization for Security and Cooperation in Europe
(OSCE) at the November 1999 Istanbul Conference,
and to conduct a genuine good neighbor policy toward
the other independent states of the former Soviet
Union in the spirit of internationally accepted prin-
ciples of regional cooperation; and
(9) to encourage the G–8 partners and inter-
national financial institutions, including the World
Bank, the International Monetary Fund, and the Eu-
ropean Bank for Reconstruction and Development, to
develop financial safeguards and transparency prac-
tices in lending to the Russian Federation.
SEC. 4. AMENDMENTS TO THE FOREIGN ASSISTANCE ACT
OF 1961.
(a) IN GENERAL.—
(1) DEMOCRACY
AND
RULE
OF
LAW.—Section
498(2) of the Foreign Assistance Act of 1961 (22
U.S.C. 2295(2)) is amended—
(A) in the paragraph heading, by striking
‘‘DEMOCRACY’’ and inserting ‘‘DEMOCRACY AND
RULE OF LAW’’;
(B) by striking subparagraphs (E) and (G);
(C) by redesignating subparagraph (F) as
subparagraph (I);
(D) by inserting after subparagraph (D) the
following:
‘‘(E) development and support of grass-roots
and nongovernmental organizations promoting
democracy, the rule of law, transparency, and
accountability in the political process, including
grants in small amounts to such organizations;
‘‘(F) international exchanges and other
forms of public diplomacy to promote greater un-
derstanding on how democracy, the public policy
process, market institutions, and an independent
judiciary function in Western societies;
‘‘(G) political parties and coalitions com-
mitted to promoting democracy, human rights,
and economic reforms;
‘‘(H) support for civic organizations com-
mitted to promoting human rights;’’; and
(E) by adding at the end the following:
‘‘(J) strengthened administration of justice
through programs and activities carried out in
accordance with section 498B(e), including—
‘‘(i) support for nongovernmental orga-
nizations, civic organizations, and political
parties that favor a strong and independent
judiciary;
‘‘(ii) support for local organizations
that work with judges and law enforcement
officials in efforts to achieve a reduction in
the number of pretrial detainees; and
‘‘(iii) support for the creation of legal
associations or groups that provide training
in human rights and advocacy, public edu-
cation with respect to human rights-related
laws and proposed legislation, and legal as-
sistance to persons subject to improper gov-
ernment interference.’’.
(2) INDEPENDENT MEDIA.—Section 498 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2295) is
amended—
(A) 
by 
redesignating 
paragraphs 
(3)
through (13) as paragraphs (4) through (14), re-
spectively; and
(B) by inserting after paragraph (2) the fol-
lowing:
‘‘(3) INDEPENDENT MEDIA.—Developing free and
independent media, including—
‘‘(A) supporting all forms of independent
media reporting, including print, radio, and tel-
evision;
‘‘(B) providing special support for, and un-
restricted public access to, nongovernmental
Internet-based sources of information, dissemina-
tion and reporting, including providing tech-
nical and other support for web radio services,
providing computers and other necessary re-
sources for Internet connectivity and training
new Internet users in nongovernmental civic or-
ganizations on methods and uses of Internet-
based media; and
‘‘(C) training in journalism, including in-
vestigative journalism techniques that educate
the public on the costs of corruption and act as
a deterrent against corrupt officials.’’.
(b) CONFORMING AMENDMENT.—Section 498B(e) of
such Act is amended by striking ‘‘paragraph (2)(G)’’ and
inserting ‘‘paragraph (2)(J)’’.
SEC. 5. ACTIVITIES TO SUPPORT THE RUSSIAN FEDERA-
TION.
(a) ASSISTANCE PROGRAMS.—In providing assistance
to the Russian Federation under chapter 11 of part I of
the Foreign Assistance Act of 1961 (22 U.S.C. 2295 et seq.),
the President is authorized to—
(1) work with the Government of the Russian
Federation, the Duma, and representatives of the Rus-
sian Federation judiciary to help implement a revised
and improved code of criminal procedure and other
laws;
(2) establish civic education programs relating to
democracy, public policy, the rule of law, and the im-
portance of independent media, including the estab-
lishment of ‘‘American Centers’’ and public policy
schools at Russian universities and encourage cooper-
ative programs with universities in the United States
to offer courses through Internet-based off-site learn-
ing centers at Russian universities; and
(3) support the Regional Initiatives (RI) pro-
gram, which provides targeted assistance in those re-
gions of the Russian Federation that have dem-
onstrated a commitment to reform, democracy, and
the rule of law, and which promotes the concept of
such programs as a model for all regions of the Rus-
sian Federation.
(b) RADIO FREE EUROPE/RADIO LIBERTY AND VOICE
OF AMERICA.—RFE/RL, Incorporated, and the Voice of
America should use new and innovative techniques, in co-
operation with local independent media sources and using
local languages as appropriate and as possible, to dissemi-
nate throughout the Russian Federation information relat-
ing to democracy, free-market economics, the rule of law,
and human rights.
SEC. 6. AUTHORIZATION OF ASSISTANCE FOR DEMOCRACY,
INDEPENDENT MEDIA, AND THE RULE OF
LAW.
Of the amounts made available to carry out the provi-
sion of chapter 11 of part I of the Foreign Assistance Act
of 1961 (22 U.S.C. 2295 et seq.) and the FREEDOM Sup-
port Act for fiscal year 2003, $50,000,000 is authorized to
be available for the activities authorized by paragraphs (2)
and (3) of section 498 of the Foreign Assistance Act of 1961,
as amended by section 4(a) of this Act.
Calendar No. 543
107TH CONGRESS
2D SESSION
H. R. 2121
AN ACT
To make available funds under the Foreign Assist-
ance Act of 1961 to expand democracy, good gov-
ernance, and anti-corruption programs in the
Russian Federation in order to promote and
strengthen democratic government and civil soci-
ety in that country and to support independent
media.
AUGUST 1, 2002
Reported with an amendment and an amendment to the
title