Chernomyrdin Warns of Threat to US-Russian Relations.

NEW YORK--(BUSINESS WIRE)--Sept. 28, 1999--

Victor Chernomyrdin, former Russian prime minister, today blamed political intrigues in both the US and Russia for the current wave of anti-Russian coverage in the US media.

Chairman of Our Home Russia, one of his country's leading national political parties, Mr. Chernomyrdin warned that the attacks on Russian business ethics and practices could endanger close US-Russian ties developed over the past several years.

Mr. Chernomyrdin was most recently President Boris Yeltsin's special envoy on the Kosovo crisis. He is in the United States in part to formally open a university institute focusing on economic links between Russia and the US. The new institute is named in his honor. Tomorrow (Sept. 29), he leaves for Washington, DC, where he will meet privately with the heads of the World Bank and the IMF.

Mr. Chernomyrdin told a New York news conference that the original objectives of his visit had changed significantly as a result of what he described as an anti-Russian campaign in the US media, followed by hearings last week before the US House of Representatives Banking Committee. Mr. Chernomyrdin decided to meet with the media and voice his own views on the latest US-Russian developments.

Mr. Chernomyrdin said the US media have accused the entire Russian business community of being corrupt and of cheating. He said the campaign had smeared not just individuals and firms but the entire mechanism of US-Russian cooperation developed while he was Prime Minister.

He expressed concern over activities aimed at undermining relations between companies and organizations of the two countries. He cited as one example the freezing of credit lines intended to expand trade between the two nations.

Mr. Chernomyrdin blamed the anti-Russian campaign on pre-election intrigues in both the US and Russia.

"I think it is my duty to speak in defense of all the good that has been created by the joint effort over the last five to seven years in US-Russian relations," he said. "This is particularly important at a time when both governments are so deeply involved in their own problems that they don't care to oppose the rising anti-Russian wave. This makes them look as if they accept accusations which are in fact absolutely groundless."

Mr. Chernomyrdin noted that the US is Russia's second largest trading partner after Germany. He also mentioned problem areas in trade with the US, including antidumping duties, quotas, restrictions on high-tech exports to Russia, and limits on Russian steel imports.

Mr. Chernomyrdin appealed to Western business people to help Russia build an appropriate foreign investment regime, including improved investment regulations and institutions, and more trained professionals within the investment community.

He stressed that assistance in these areas should not be regarded as charity. By being among the early entrants, companies which participate in building such a system will gain competitive advantages over other firms.

He also urged Western companies not to wait for every element of foreign investment protection to fall into place, but to begin building business in Russia now.

Mr. Chernomyrdin said: "You should rely on the people you know well, who have credentials as government officials or businessmen, who won't lose their heads over big money, who cherish democratic values and care for the interests of their nation. We have such people in my country and I can assure you that many of them joined our political movement Our Home Russia.

Speaking about other areas of cooperation Chernomyrdin noted successful US-Russian cooperation to combat organized crime. He urged the West to pool efforts in combating international terrorism. "Ben Laden is our common enemy and can only be stopped through coordinated actions", he said.

Mr. Chernomyrdin's US itinerary includes New York, Bridgeport, Conn., and Washington, DC.

In New York Mr. Chernomyrdin met with the Co-Chairman of the Council for Foreign Investments and spoke at a Eurasia Group Fund luncheon with business and financial leaders.

Earlier today (Sept. 28), Mr. Chernomyrdin attended the formal opening of the Chernomyrdin Institute for Russian-American Economic Studies at Bridgeport University, and was also awarded an honorary doctorate and named and Honorable Fellow of the New England Center for International and Regional Studies.

Mr. Chernomyrdin's Washington agenda includes a meeting with President of the World Bank James Wolfensohn.

He and his wife will also dine privately with Michel Camdessus, Managing Director of the International Monetary Fund, and Mrs. Camdessus.

Mr. Chernomyrdin will speak at a National Press Club lunch organized by the Center for Democracy.