Public Remarks

Remarks at American Chamber of Commerce in Russia

William J. Burns, U.S. Ambassador to Russia

Eighth Annual Investment Conference, April 04, 2007

As Delivered

It is an honor to be with you. If there's one thing I've learned over the years as an Ambassador, it's that if you're on a podium and you're the last thing standing before the remarks of two distinguished Ministers, it's a good idea to be brief. Very brief. So I'll do my best. I'll just make four points.

First, let me express my admiration for the extraordinary work of Andy Somers and all of you in the American Chamber. Your success is obviously reflected in your corporate bottom lines, where many of you working in Russia today represent the fastest growing parts of huge global enterprises. But it's also reflected in the positive impact you have every day in Russia on corporate governance. In building an understanding of what we and Russia have to gain by working together. In displaying the best in American innovation, entrepreneurship and business practices. In accelerating Russia's integration into the global economy. And in helping Russians to show the world all that they have to offer.

Second, as all of you know as well as I do, this is a moment of great economic opportunity in Russia. This country's trillion dollar economy is about to become the tenth largest in the world. Foreign direct investment is soaring. A middle class is emerging. Retail markets are expanding as fast as anyplace in the world. All of that was simply unimaginable eight years ago, when the American Chamber held its first investment conference, not long after the financial collapse of 1998. Many Russians deserve credit for those achievements, but none more than German Gref.

Third, the role of American business in helping Russia to realize its economic potential is growing. Our bilateral WTO agreement last November was the biggest single step forward in our economic relationship in the past decade. It sets the stage for successful completion of Russia's multilateral accession talks this year. American investment in Russia increased by nearly fifty percent last year, much of it outside of Moscow and St. Petersburg. Our economic relationship is rapidly becoming a genuine two-way street, with the doors open in the United States to increased Russian investment, and opportunities multiplying across Russia for America companies.

Finally, America's contribution as Russia diversifies beyond hydrocarbons is only going to get bigger. The great economic challenge before Russia in the years ahead is what it will do with its hard-won stability, after the troubles of the 1990s. What it will do with the rare and impermanent moment of energy-driven opportunity before it. What it will do not just with its immense natural resources, but with the human resources that set it apart from so many other countries that happen to have a lot of valuable stuff in the ground. Success is by no means automatic. It will require hard choices, about everything from the corruption and red tape that handicap Russian businesses, to the piracy that threatens Russia's reviving film and music industries, to the infrastructure challenges that inhibit economic growth, to bringing clarity and predictability to the rules of the road for foreign as well as domestic capital, to the need to aggressively rebuild the education and health care systems so critical to realizing the promise of Russia's enormously talented people.

It's probably true that most Americans do not understand how difficult the last fifteen years have been for Russia, or what a very long way Russians have come economically in a very short time. Much more remains to be done, and much more is possible. I know I don't need to convince any of you of those possibilities, and I genuinely look forward to continuing to work with all of you, and with Minister Gref and Secretary Gutierrez, to help make them a reality. Thank you.