Business Mission Opening Day Highlighted By Two Successes

Moscow, Russia - -- The first business development mission of the Bush Administration was kicked off today, with the announcement of two major U.S. business ventures in Russia.

U.S. Commerce Secretary Don Evans joined U.S. business executives and Russian businesses and government leaders at back-to-back news conferences here to mark two milestones in U.S.-Russia commercial relations.

Evans and ChevronTexaco Vice-Chairman Richard Matzke joined the general director of the Caspian Pipeline Consortium (CPC) and other Russian government and business leaders to announce the first shipment of crude oil from the CPC. The CPC is a 935-mile crude oil pipeline that runs from the Tengiz Field in Kazakhstan to the Black Sea, unlocking the hydrocarbon reserves in the Caspian Basin. Construction began in 1999, and the first tanker loaded with oil from the pipeline departed the port of Novorossiysk today.

American businesses are the largest investors in the Consortium, with an investment topping $1 billion. The CPC is the largest-ever U.S. investment in Russia. The pipeline is expected to increase crude oil exported from Russia and Kazakhstan by as much as 67 million tons per year.

U.S. Ambassador to Russia Alexander Vershbow and Senior Commercial Officer Stephan Wasylko greet Secretary Evans at the Moscow Airport.

"The successful launch of the Caspian Pipeline Consortium sends an important message," Secretary Evans said. "It tells the world that the United States, Russia, and Central Asian states are cooperating to build prosperity and stability in this part of the world."

On the heels of that announcement, Evans teamed with Dallas-based Frito-Lay, a participant in the Administration's business development mission to Russia, to launch a new $40 million investment in Russia. Frito-Lay's President for Central and Eastern Europe John Stevenson announced the company will build a state-of-the-art plant, train workers and support related agricultural development programs in Kashira.

Secretary Evans at the announcement of Frito-Lay's new $40 million dollar investment in Russia.

"[Russian] President Putin's commitment to reform is opening new doors of opportunity for commercial development here in Russia," Evans said. He said the early success of the current business mission to Russia is "just a beginning" and that he expects the increasingly favorable business climate there to lead to increased partnerships between businesses in the two countries.

Evans and executives from 14 American companies of all sizes representing a broad cross-section of industry sectors, arrived in Moscow yesterday. This is Evans' second trip to Russia. In July, he met with President Putin and Economic Development and Trade Minister German Gref, as well as Russian business leaders and Americans doing business in Russia.