Opinion Editorials & Interviews
Interview with Andrey Terekhov of Nezavisimaya Gazeta
William J. Burns, U.S. Ambassador to Russia
Nezavisimaya Gazeta, November 22, 2006
"Moscow And Washington Share Unique Historical Responsibility"
TEREKHOV: Last week there was an important development in U.S.-Russian relations: Moscow and Washington signed the bilateral protocol on WTO. Would you call this as a warming in U.S.-Russian relations, and if so, how long is it likely to last?
AMBASSADOR BURNS: First, it's a pleasure to have a chance to meet with you today. The last week has provided some powerful reminders that the United States and Russia have a great deal more to gain by working together than we do by working apart. Our two leaders understand that very clearly. It was no accident that President Bush stopped at Vnukovo airport on his way to Asia. There are more direct routes from Washington to Singapore. But it was a reflection of the importance that President Bush attaches to this relationship.
The WTO agreement between our two countries is a very powerful example of what we have to gain by working together. It's the single most important step in economic relations between the United States and Russia since the end of the Cold War. It's a good agreement for both of our countries. For Russia, it will reinforce the possibilities to diversify the economy. It will make available to Russian consumers more goods at cheaper prices. It's an important step for Russia and the global economic community because Russia is now the 10th largest economy in the world and it's important that it be a member of the world's most important economic institutions.
The WTO bilateral agreement is good agreement for the United States as well. American investment in Russia increased by almost 50% last year, and this agreement will provide a further impetus for business relations between our two countries, not only in the energy sector, which remains very important, but also outside the energy sector where companies like Boeing and Intel have major projects in Russia. They take advantage of the enormous human capital, the very well educated workforce of Russia, and Russia's potential in the technology sector which is an important way to help Russia diversify its economy.
The events that you described are a very powerful reminder of what we have to gain by working together. It doesn't mean that Russia and United States won't have differences. Of course we will; they're natural in any relationship. We have to be honest about them and we have to work hard to manage them, but I think it would be a big mistake for both of us to lose sight of those very important areas of common ground. Sorry to be so longwinded.
TEREKHOV: Would you agree with the claims that U.S.-Russian relations are at their lowest point since the end of the Cold War?
AMBASSADOR BURNS: No. The achievements that you described, which have taken place over the course of the last week, indicate the common ground between us and the potential for developing our relationship. It is true that we have had more than our share of frustrations and mutual disappointments in recent years. I have no illusions that we will be able to avoid differences in the future over some issues. But I think it important, not just in the interests of our two countries, but in the interests of the whole international community for us to work together. One very important example is nuclear cooperation. Our two Presidents talked about this when they met in Moscow last Wednesday. The United States and Russia have unique capabilities in the nuclear sphere, but also unique historical responsibilities. Our cooperation is important not only in the specific cases of Iran and North Korea, but more generally in strengthening the NPT regime. It's important for the United States and Russia to set a good example for the rest of the world. It's very important for us to continue our cooperation in insuring the safety and security of nuclear materials.
The United States and Russia are leading a new initiative to increase cooperation against nuclear terrorism. It's also important for us to work together in the area of civilian nuclear technology, where Presidents Bush and Putin have very similar ideas with regard to creating enrichment centers so that the benefits of civilian nuclear technology can be made available to countries in the developing world while, at the same time, we guard against the dangers of proliferation.
TEREKHOV: The U.S. Congress will be controlled by Democrats next year. As a result of this, will the President need to revise his policy towards Russia?
AMBASSADOR BURNS: I don't think there will be significant changes. President Bush and his administration have made very clear the importance of the relationship and the direction in which they want to take. It's no secret that there are concerns, skepticism, and criticism sometimes in the American Congress about the relationship with Russia. They cross political party lines. I hear the mirror image of many of the same kinds of concerns and criticism in the Duma and in Russian society about the relationship with the United States. I think it's important for of us to keep a sense of perspective about our relations.
Next year is the 200th anniversary of relations between the United States and Russia. We've had lots of ups and downs in our relationship over 200 years to include changes in leadership. But what has remained consistent is the importance of our relations.
TEREKHOV: Will there be difficulties in ratifying the agreement on Russia's accession to the WTO?
AMBASSADOR BURNS: Certainly difficulties are possible, but I believe they are surmountable.
TEREKHOV: Some experts believe that the United States and Russia could successfully exploit a policy of geopolitical "quid pro quo." They cite as an example the latest United Nations Security Council Resolutions on Georgia and North Korea that were passed almost one after another. How do you comment on this? Do you think a policy of geopolitical "quid pro quo" would be effective?
AMBASSADOR BURNS I'm not sure I would call it a policy of "quid pro quo". In any relationship, especially in one as important as the one between our two countries, we are each looking for a balance of interests which promote both of our needs and both of our priorities. On North Korea we work very closely together. It's still a very difficult problem. We share a common goal. Georgia is a very complicated problem as well. We try to encourage a de-escalation of tensions. It's very important to rely on peaceful means for dealing with the complicated problems of Abkhazia and South Ossetia. We've got a very big and complicated relationship that covers a wide variety of issues and problems. But we can achieve a lot if we focus on areas of common ground.
TEREKHOV: Russia's approach to Iran's nuclear programs, as it is believed, is based not only on our security concern, but also dictated by close bilateral economic ties of Moscow and Teheran. Do you think that Washington takes into account these economic interests that Russia has in Iran? And do you think that they have any idea in Washington as to how these potential damages to Moscow could be redressed if the sanctions are imposed?
AMBASSADOR BURNS Russia has important interests in Iran and we take those into account. Russia and the United States share an important strategic concern about the danger of Iran acquiring a nuclear weapon. The issue here is nor about Iran's right to pursue peaceful nuclear program. The reality is that Iran has concealed nuclear activities from the IAEA, and the United States and other countries have serious and legitimate concerns about Iran's nuclear ambitions.
Russia, the United States, key European countries, and China have worked closely together with regard to this issue. Last summer we made a very generous offer to Iran that in return for a suspension of uranium enrichment activity and return to compliance with the IAEA we made clear what the benefits would be for Iran. In addition, President Putin put forward a very creative idea for enriching fuel for Iran on the territory of Russia. So far, unfortunately, Iran has not responded positively to this offer. The United States and our partners in this effort are pursuing a UN Security Council resolution. The purpose of that resolution is to make clear to Iran the consequences of its continued refusal to comply with the will of the international community.
It's true that there are tactical differences between the United States and Russia about what exactly should be in that resolution. But I'm confident that we will be able to work out a resolution. It will continue to be very important for our two countries to work together on this issue. The consequences for both of us, for the United States, for Russia, for the entire international community, of Iran acquiring a nuclear weapon are quite dangerous. It would have negative consequences not only in terms of political stability in a very important region, but also negative security and economic consequences. The objective of this resolution and of our diplomatic efforts is not to foreclose negotiations, but to bring Iran back to negotiations and back into compliance with its international IAEA obligations.
TEREKHOV: Have the latest meetings between President Putin and President Bush in Moscow and Hanoi contributed to closing the gap in approaches towards Iran?
AMBASSADOR BURNS I don't underestimate the difficulties. We have some tactical differences. We share a clear strategic concern. We are making progress tactically. And certainly the conversation between our two Presidents was an important part of that effort.
TEREKHOV: Forbes Russia Chief Editor Paul Klebnikov and journalist Anna Politkovskaya were U.S. citizens. Have U.S. law enforcement agencies taken part in the investigation of these killings?
AMBASSADOR BURNS We are glad to provide whatever help that we could, but we have not been asked to do so. We welcome the fact that both President Putin and the Procurator, Mr. Chaika, have publicly indicated the high priority that Russia attaches to those investigations and to bringing those responsible to justice. We also welcome the decision of the Russian Supreme Court to reverse the acquittal of the defendants in the Klebnikov case.
Those two murders, the murders of Paul Klebnikov and Anna Politkovskaya, as well as the murders of 10 other Russian journalists in recent years, are a very serious challenge to the rule of law in Russia. And that is why it's very important, for the sake of Russia, that those investigations are successful and that those responsible are brought to justice.
TEREKHOV: Do you think that Washington is satisfied with U.S. companies' opportunities to access Russia's energy sector?
AMBASSADOR BURNS At the G-8 Summit last July there was a very ambitious framework for energy security laid out. It talked about the responsibility of buyers as well as suppliers. It talked about the importance of predictable and transparent regulatory and tax regimes. It talked about the importance over the long-term of a vision for diverse sources and transit routes for energy. Within that framework Russia obviously has a hugely important role to play, because it is the biggest producer in the world today of oil and gas.
Russia has many capabilities, both financial and technological, but the involvement of foreign partners and foreign companies in the energy sector is also very important. The additional capital and the additional technological know-how that they can bring will help Russia realize its potential in energy. The United States is not only today the world's largest consumer of oil and gas, but American energy companies also have a lot to offer in terms of their expertise.
There have been some important success stories in Russian-American energy cooperation. One of the best examples is the partnership between Lukoil and ConocoPhillips. Lukoil last week celebrated its 15th anniversary. ConocoPhillips now owns about 20% of Lukoil. Their relationship is a real two-way street. Lukoil owns a retail network in the United States. I have filled up my car with gas at Lukoil gas stations in the United States. ConocoPhillips has added a lot in terms of its expertise and exchange of official from both companies here in Russia. I think there is much more that can be done in the future, not just in that partnership, but in the role that other American companies can play.
TEREKHOV: So American companies have difficulties in gaining access to Russian energy market, as far as I understand?
AMBASSADOR BURNS: American companies remain very interested in the Russian energy sector. There are a number of obvious success stories that work to the benefit of both of our countries. One of them is Lukoil and ConocoPhillips. Another is ExxonMobil which works with Rosneft in the Sakhalin-1 project. Chevron also has important interests in this part of the world. And what our companies emphasize is the importance of transparency and predictability so that the rules of the game for foreign investors, whether American or other, are clear and predictable. Of course, there are sometimes disappointments and uncertainties along the way, but the sooner those rules of the game are made clear for everyone the better it is for all of us.
TEREKHOV: The NATO economists are concerned that Moscow might be willing to form a gas cartel. Do you think that in Washington such a "gas attack" would be considered a hostile action?
AMBASSADOR BURNS: Russian Finance Minister Mister Kudrin was quoted in newspapers today as saying it's simply not true, that Russia has no intention of creating or trying to create such a cartel. I don't know any senior Russian government official who's been advocating that. The global market in gas is becoming increasingly important, increasingly diverse, and increasingly dynamic. Buyers and suppliers are both going to have an interest in trying to develop that market and invest in new infrastructure and new technology, especially in liquefied natural gas. That means that a cartel doesn't make any sense at all.
TEREKHOV: My last question is about a recent referendum on independence in South Ossetia. You are certainly aware that Russia is the only world power that supports the results of this referendum. How do you account for Russia's policy in this region, namely in regards to the break away Georgian provinces of South Ossetia and Abkhazia?
AMBASSADOR BURNS: American policy is very clear: we support the territorial integrity of Georgia. We don't think anybody gains by questioning that principle. The United States believes very strongly that only through peaceful means can you resolve the problems of Abkhazia and South Ossetia. The use of force makes no sense for any party and would be very dangerous and counterproductive. We've made that very clear to all of the parties, including in Tbilisi. The United States continues to work very hard with the Europeans, with United Nations, and with the OSCE to encourage the de-escalation of tensions; to encourage a more constructive atmosphere for peaceful negotiations – for diplomacy; to build confidence between the parties, and to focus on practical issues of economic development. It's a very complicated problem, but the United States will do all it can to encourage a constructive approach.