DATE=12/21/1999
TYPE=CORRESPONDENT REPORT
TITLE=EXIM RUSSIA (L-O)
NUMBER=2-257366
BYLINE=BARRY WOOD
DATELINE=WASHINGTON
INTERNET=YES
CONTENT=
VOICED AT:

INTRO:  The United States has blocked a 500-million-
dollar government loan program for Russia's oil 
industry.  Correspondent Barry Wood reports the State 
Department intervened in the transaction, saying the 
loan guarantees to Russia's Tyumen Oil Company would 
threaten the U-S national interest. 

TEXT:  The Russian company would have used the money 
to purchase oil-field equipment and services from the 
U-S Halliburton company and the U-S subsidiary of the 
Swiss A-B-B company.  

The Export Import Bank, a U-S government agency, had 
granted preliminary approval to the transaction.  
Secretary of State Madeleine Albright notified the 
bank that it is not in the national interest for the 
loan to go forward.

A Russia specialist at Washington's Nixon Center, Paul 
Sanders, believes the rejection reflects U-S 
disapproval of Russia's military action in Chechnya.

            // SANDERS ACT //

      I think it is very significant.  It is a clear 
      sign of displeasure with the military operations 
      Russia is currently managing in Chechnya.  It is 
      a clear signal from the administration and it 
      will be interpreted in precisely that manner in 
      Moscow.

            // END ACT //

The Export Import Bank loan has also become 
controversial because Tyumen has recently been 
involved in questionable business practices that have 
infuriated multi-national companies operating in 
Russia. 

BP-Amoco, the British/U-S company that is the largest 
foreign investor in Russia, has accused Tyumen of 
colluding with the government to essentially steal 
assets from BP-Amoco.  Even though B-P-Amoco and the 
Russians are moving to settle their dispute, alleged 
asset stripping and shady deals by Russia financiers 
have soured the appetite of foreign investors. 

Western financial and business relations with Russia 
have been deteriorating recently.  The International 
Monetary Fund, which has lent 20-billion dollars to 
Russia, has blocked a 640-million dollar loan 
installment since September. 

While the I-M-F says the delay is because Russia has 
not amended its lax financial practices, Russian 
policy makers say the real reason is Western 
opposition to the military action in Chechnya.   
(SIGNED)

NEB/BDW/RAE 



21-Dec-1999 14:44 PM EDT (21-Dec-1999 1944 UTC)
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Source: Voice of America
.