Alaska State Legislature

News Release

Ken Freeman, (907) 258-8164
Wendy Lindskoog, (907) 258-8184
Anchorage Legislative Information Office
Anchorage, AK 99501
web site: www.akrepublicans.org
Actuality line: 1-800-478-6540

Sakhalin Governor and Legislative Officials Welcome Alaskans

Stress Need for Joint Ventures

For Immediate Release: September 28, 1997 Contact: Ken Freeman (907) 258-8164

Yuzhno-Sakhalinsk (Russian Far East) -- Although it's Monday in Alaska, it's Tuesday morning in Sakhalin where a 45 member Alaska delegation of business leaders and state officials is preparing to meet with their Russian Far East counterparts to discuss business opportunities and public infrastructure that will encourage the development of joint ventures.

"After a very warm welcome from both Sakhalin Governor Farkhutdinov and Duma (legislative) members on Monday, we were convinced of the importance Russian people place on government to government relations. These initial government contacts add credibility and set the stage for subsequent business relations," said Senate President Mike Miller.

"The atmosphere here is very promising for Alaska businesses. After our first full day of meetings, we were assured that Sakhalin government and business leaders are very anxious to move forward with joint ventures," said House Speaker Gail Phillips. "In fact, a number of the business leaders in our delegation have already conducted meetings with Russian business leaders."

In a comprehensive briefing session with Governor Farkhutdinov, he stressed the need for Alaskans to establish joint ventures with Russian companies in order to qualify for Sakhalin projects. In these projects, Alaskans will provide technical expertise while fulfilling the legal requirement for Russian local hire.

Miller and Phillips noted that part of the Diplomatic Mission's goal is to offer assistance and suggestions to Russian Far East government officials as they lay the groundwork for a market economy.

"Starting today, legislators will divide into breakout groups with Russian officials to share ideas regarding the development of oil and gas legislation, a judicial system, standard business practices, environmental protection and royalty and severance tax policies," Miller said.

"Another area we will address is arbitration and dispute resolution. In order to better enhance a stable business climate in the Russian Far East, we will discuss the manner in which Alaska addresses resolving disputes and other legal contracts."

While legislators meet with government officials, Alaska business leaders will meet with representatives of the Department of Mineral Resources, the Ecology Committee, and Russian-American Joint Venture at the American Business Center in Sakhalin.

Broadcast Note: This press release was created by Wendy Lindskoog who is traveling with Alaska Legislators in Russia. Wendy will have radio actualities available through Ken Freeman in the House Majority Press office beginning Sept. 30.

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