I
106TH CONGRESS
1ST SESSION
H. R. 3027
To propose principles governing the provision of International Monetary Fund
assistance to Russia.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 5, 1999
Mr. WELDON of Pennsylvania (for himself, Mr. ABERCROMBIE, Ms. KAPTUR,
Mr. ARMEY, Mr. MURTHA, Mr. COX, Mr. LEACH, Mrs. TAUSCHER, Mr.
SAXTON, Mr. TAYLOR of North Carolina, Mr. KUCINICH, Mr. ROYCE, Mr.
BURTON of Indiana, Mr. GILMAN, Mr. WICKER, Mr. HOLDEN, Mr.
BRADY of Pennsylvania, Mr. GRAHAM, Mr. CRAMER, Mr. HAYES, Mr.
ROHRABACHER, Mr. SHERWOOD, Mr. PITTS, Mrs. FOWLER, Mr. DELAY,
Mr. GOSS, Mr. WATTS of Oklahoma, Mr. GIBBONS, Mr. BARTLETT of
Maryland, Mr. SNYDER, Mr. ORTIZ, Mr. ANDREWS, Ms. BROWN of Flor-
ida, Mr. HINCHEY, Mr. SCHAFFER, Mr. SISISKY, Mr. GOODE, Mr.
HOEFFEL, Mr. DICKS, Mr. KANJORSKI, Mr. THORNBERRY, Mr. STEN-
HOLM, Mr. PICKETT, Mr. CONDIT, Mr. PETERSON of Minnesota, Mr.
RYAN of Wisconsin, Mr. HALL of Texas, Mr. LAZIO, Mr. REYES, and Mr.
SANDERS) introduced the following bill; which was referred to the Com-
mittee on Banking and Financial Services, and in addition to the Com-
mittee on International Relations, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To propose principles governing the provision of International
Monetary Fund assistance to Russia.
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 Economic
Restoration and Justice Act of 1999’’.
SEC. 2. FINDINGS; GOALS.
(a) FINDINGS.—The Congress finds that—
(1) the United States has spent billions of dol-
lars to aid Russia through the provision of funds to
the International Monetary Fund and other inter-
national financial institutions, and through other
programs;
(2) many of these funds have been siphoned off
by corrupt institutions; and
(3) the average Russian family has yet to see
an improvement in their standard of living.
(b) GOALS.—It is the sense of the Congress that—
(1) the United States must find a way to more
effectively support democracy and the establishment
of free markets in Russia; and
(2) the following principles should be applied to
international financial institution assistance to Rus-
sia:
(A) establish a joint Russian-United States
legislative oversight commission to monitor the
use of Western resources in Russia;
SEC. 3. PRINCIPLES GOVERNING INTERNATIONAL MONE-
TARY FUND ASSISTANCE TO RUSSIA.
The Bretton Woods Agreements Act (22 U.S.C. 286–
286mm) is amended by adding at the end the following:
‘‘SEC. 61. PRINCIPLES GOVERNING INTERNATIONAL MONE-
TARY FUND ASSISTANCE TO RUSSIA.
‘‘(a) CONDITIONS
AND LIMITATIONS
OF ASSIST-
ANCE.—The Secretary of the Treasury shall instruct the
United States Executive Director at the Fund to use the
voice and vote of the United States to urge the Fund—
‘‘(1) to not provide any assistance to the gov-
ernment of the Russian Federation or of any polit-
ical subdivision of the Russian Federation, or to any
other entity in the Russian Federation, until there
is in effect a Russian federal law that implements
the economic reforms described in subsection (b);
and
‘‘(2) to provide assistance to the Russian Fed-
eration or a political subdivision of the Russian Fed-
eration only to aid the implementation of such re-
forms.
‘‘(b) ECONOMIC REFORMS.—The economic reforms
described in this subsection are the following:
‘‘(1) Land reform, including private ownership
of land.
‘‘(2) Further privatization of state-owned indus-
trial enterprises.
‘‘(3) Tax reform, including increased collection
of tax obligations.
‘‘(4) Development of effective commercial law,
including the ability of individuals to seek enforce-
ment of contracts by an effective judicial system.
‘‘(5) Establishment of residential mortgage fi-
nancing system for middle class individuals residing
in the Russian Federation.
‘‘(6) The development of criteria for evaluating
the effectiveness of regional economic reform pro-
grams in the Russian Federation, and the use of
such criteria to assure that Western resources are
provided to the political subdivisions of the Russian
Federation on an equitable basis, taking into ac-
count the necessity to provide incentives for political
subdivisions to implement viable economic reforms
and to reward those that have made progress in im-
plementing such reforms.
‘‘(7) The development of steps to make the re-
cipients of Western resources in the Russian Federa-
tion accountable for the use of such resources.’’.
SEC. 4. RUSSIAN-AMERICAN FINANCIAL OVERSIGHT COM-
MISSION.
(a) IN GENERAL.—The Speaker of the House of Rep-
resentatives and the President of the Senate shall seek to
enter into negotiations with the State Duma and the Fed-
eration Council of the Russian Federation for the estab-
lishment of a commission which would—
(1) be composed of 8 Members of the United
States Congress and a total of 8 Deputies from the
State Duma and Federation Council;
(2) monitor expenditures of the funds provided
to the government of the Russian Federation or a
political subdivision of the Russian Federation by
the United States or the international community,
for the purpose of evaluating that the funds are used
for only for the purposes for which provided; and
(3) create a working group of financial experts
tasked with developing a comprehensive program to
reform, privatize, or close industrial enterprises in
the Russian Federation that are bankrupt and are
(or would be) not competitive under conditions of a
market economy without significant government fi-
nancial support.
(b) MEMBERSHIP.—On the successful conclusion of
negotiations under subsection (a), the Speaker of the
House of Representatives and the President of the Senate
are jointly authorized to appoint 8 Members of Congress
to the commission established pursuant to subsection (a).
SEC. 5. SENSE OF THE CONGRESS.
(a) ESTABLISHMENT
OF JOINT UNITED STATES-
RUSSIAN BUSINESS, ECONOMICS, AND AGRICULTURAL
EDUCATION PROGRAMS.—It is the sense of the Congress
that the United States and the government of the Russian
Federation should conclude an agreement under which
students in the Russian Federation would enroll in col-
leges and universities in the United States at under-
graduate and graduate levels for the purpose of developing
a network of specialists in business administration, eco-
nomics, and agricultural production in the Russian Fed-
eration, and students so enrolled would, on completion of
their studies in the United States, be required to return
to the Russian Federation and work for the federal or a
regional government in Russia.
(b) LINKING OF UNITED STATES BUSINESS LEAD-
ERS WITH RUSSIAN FEDERATION BUSINESS LEADERS.—
It is the sense of the Congress that the United States and
the government of the Russian Federation should create
a program which would link successful United States busi-
ness leaders with their counterparts in the Russian Fed-
eration, so that companies in the Russian Federation will
be better able to access a pool of resources and knowledge
to assist them in their transition to successfully competing
in a market-based economy.
SEC. 6. IMF REFORM COMMISSION.
The Secretary of the Treasury shall instruct the
United States Executive Director at the Fund to use the
voice and vote of the United States to urge the Fund to
create a commission, composed of prominent international
financial experts, for the purpose of drawing up rec-
ommendations for reforming the Fund, with a view to
achieving more transparency in the structures of the Fund
and increasing the effectiveness of Fund programs while
decreasing financial risk.
SEC. 7. RUSSIAN HOUSING LOAN PROGRAM.
(a) LOAN PROGRAM.—There is hereby established a
pilot housing loan program for the people of Russia, with
such funds as may be made available, as the means by
which the average Russian citizen may attain affordable
home ownership.
(b) RESTRICTIONS.—None of the funds under this
section may be made available—
(1) for transfer to the Government of Russia;
or
(2) for the purposes of providing Russian mili-
tary housing.
(c) ESTABLISHMENT OF ADMINISTERING CORPORA-
TION.—
(1) IN GENERAL.—There is established a non-
profit corporation (in this section referred to as the
‘‘Corporation’’).
(2) PURPOSE.—The purpose of the Corporation
shall be to administer directly funds made available
under this section.
(3) RECOMMENDATIONS REGARDING THE MEM-
BERSHIP OF BOARD OF DIRECTORS.—It is the sense
of the Congress that the Corporation should consist
of a 13-member Board of Directors, the members of
which should be appointed by the President of the
United States from lists provided by the following
individuals:
(A) Two members from a list provided by
the Speaker of the United States House of Rep-
resentatives.
(B) One member from a list provided by
the minority leader of the United States House
of Representatives.
(C) Two members from a list provided by
the majority leader of the United States Senate.
(D) One member from a list provided by
the minority leader of the United States Senate.
(E) Two members appointed by the Presi-
dent of the United States at his discretion.
(F) Four members from a list provided by
the President of the Russian Federation.
(G) One member from a list provided by
the Chairman of the Russian State Duma.
(4) 
RECOMMENDATIONS
REGARDING
THE
CHAIRMAN OF THE BOARD OF DIRECTORS, TERMS
OF OFFICE, AND AUTHORITY.—It is the sense of the
Congress that the President of the United States
should select a Chairman of the Board of Directors
from among the 13 board members, that the Chair-
man should serve a single 2-year term, and that the
entire Board of Directors should serve a 2-year term
and have the authority to select other officers and
employees to carry out the purposes of the Corpora-
tion.
(d) LOAN SIZE AND TYPE.—Since it is the intent of
the housing loan program to provide loans for the average
middle-income potential Russian home buyer, loans shall
range between the equivalent of $10,000 to $50,000
(U.S.). This amount shall be determined by the Corpora-
tion and shall fluctuate in accordance upon market condi-
tions. Loans shall be for a term of 10 to 30 years and
may be prepaid at any time without penalty. Loan pay-
ments shall be amortized on a basis of level monthly pay-
ments.
(e) WORKING GROUPS.—The Corporation shall have
the authority to establish working groups comprised of
Russian and American experts, for the purpose of making
recommendations on topics essential to the success of the
program, including, but not limited to—
(1) the preparation of the necessary legal and
regulatory changes;
(2) the involvement of United States housing
trade and labor associations in providing materials,
training, and joint venture capital;
(3) ensuring adequate offsite infrastructure for
new housing sites; and
(4) other issues as deemed appropriate by the
Corporation.
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