JACKSON-VANIK AMENDMENT IS CANCELED NOT BECAUSE OF POLITICAL MOTIVES

Regnum, Russia
March 9 2006

The US Congress recommended to cancel Jackson-Vanik amendment towards
Ukraine. Official Kiev, along with other countries of ex-USSR has
been struggling for denunciation of Jackson-Vanik amendment since
their independence. Ukrainian President Yushchenko noted that during
last months, the US suppored Ukrainian reforms and already recognized
Ukraine as a country with market economy. Signature of bilateral
protocol between Ukraine and the US on condition of access to goods
and services market represents strategic partnership between the
two countries. The US will aid in stirring up trade relations and
new investments.

The question of abolishing the Jackson-Vanik amendment regarding Russia
has been discussed during the visit of Russian Foreign Minister Sergey
Lavrov in the US. American Ambassador in Russia William Burns stated
that the US administration would seek abolition of the Jackson-Vanik
amendment regarding Russia, but currently, it has practically no
effect on Russia.

Experts do not bound cancellation of the amendment with the change of
political regime in Ukraine, because it has been canceled to Georgia
in 2000, when no one heard about Mikhail Saakashvili, and with Armenia
Jackson-Vanik amendment was canceled on November 2004.

REGNUM Information: Jackson-Vanik requirements were introduced in
1974 in US Law on Trade regarding the USSR. It was an initiative of
the Jewish community, because the USSR hampered Jewish emigration.

The amendment bans official credits to the countries that limit
emigration of its citizens. It also presumes that goods imported in
the USA from countries with non-market economy are under the effect of
discriminative tariffs and taxes if the country hampers its citizens’
right to emigrate in any way. The Jackson-Vanik amendment is still
acting regarding Russia and many other CIS countries.