Alaska State Legislature

News From The Senate and House Majorities

Ken Freeman, House Press Secretary (907) 258-8164
Wendy Lindskoog, Senate Press Secretary (907) 258-8184
Anchorage Legislative Information Office
Anchorage, AK 99501-2133
web site = http://www.akrepublicans.org
Actuality line: 1-800-478-6540

Russian Far East Trade Mission a Success

Mission Cultivates Our Future Together

For Immediate Release: October 6, 1997 Contact: Wendy Lindskoog at (907) 258-8184

Anchorage -- Alaska legislators and business leaders returned from a Russian Far East (RFE) Diplomatic Trade Mission to Sakhalin and Khabarovsk Sunday, reporting that the Mission opened a floodgate of opportunities for Alaska businesses. The Mission strengthened government relations and connected many Alaska and Russia companies that are now working towards joint ventures.

The Mission was planned with two goals in mind: to advance joint cooperative business opportunities between Alaska and Russia businesses and to offer suggestions and assistance to the Sakhalin and Khabarvosk Dumas as they prepare for the transition to a market economy.

"We made great headway, both from a public and private standpoint," said Senate President Mike Miller. "Our legislative counterparts from Khabarovsk and Sakhalin are eager to learn more about Alaska's laws and regulations, especially as they relate to resource development, commerce and free enterprise."

"Our legislative discussions with Duma members in small work groups focused on the issues Alaska businesses want standardized in order to feel more secure while doing business in Russia," said House Speaker Gail Phillips. "These issues include customs, employment labor laws, permitting and regulation, banking, arbitration, dispute resolution and the ability for Alaska companies to lease or acquire the property and infrastructure needed to operate successfully."

"It is exciting to see firsthand the level of interest the Russians have in our system of government and in doing business with Alaskans," Miller said, "I believe the success stories from this Mission will emerge for years to come."

"We made great strides and developed the kind of friendships that build trust and commradery, both necessary ingredients to doing business in Russia," Phillips said.

After several work sessions in Sakhalin and Khabarovsk, Senator Loren Leman, Chairman of the Senate Labor and Commerce Committee, noted that Russian Far East Duma members are extremely creative in dealing with their economic and political challenges. "Like us, many of their challenges derive from a distant and inefficient federal government," Leman said, "Resources are abundant, but a stable, less confiscatory tax structure is a must if they are to attract the investment capital they need."

Representative John Cowdery, Chairman of the House Special Committee on International Trade, noted that in order for Alaska businesses to feel comfortable jumping into joint ventures with Russia companies, they want assurances that contracts will be honored and disputes resolved.

"Lack of a contract dispute resolution mechanism has hurt many Alaska companies investing in the Russian Far East and is discouraging other businesses from participating in the region," said Cowdery.

To start the ball rolling, the delegation presented an international dispute resolution system and Alaska's commercial laws translated into Russian to Duma members. Representative Cowdery and House Majority Leader Brian Porter participated in several work sessions focusing on this particular issue. They also met with Valukova Alexandrovna, Deputy Judge of the newly formed Regional Arbitration Courts in Khabarovsk, to determine the structure of the courts and to receive their founding documents.

Jane Miller Floyd, Consul General, Consulate General United States of America, Vladivostok, met with delegation members in Khabarovsk and stated her support for the delegation's work on arbitration and dispute resolution. She said that this is the most important work the Alaska government can do to help stabilize the investment climate in the RFE.

Steve Smirnoff, Honorary Consul General for the Russian Federation in Alaska, said he was pleased to see such a great turnout for this diplomatic trade mission and equally pleased to see so many business opportunities take shape. "Several business people made great contacts during the course of this Mission," said Smirnoff. "Many actually hired people here in Russia to do due diligence and I know of several proposals made by Russian firms to some of our Alaska business participants."

Business people on the Mission said that traveling with government officials from Alaska saved them both time and energy in terms of networking with government and industry leaders in Russia. They agreed that the opportunity on this trip to build good relations with Russia and Alaska legislators will have tremendous benefits as they embark on future business agreements in the RFE.

Seeing the level of interest in sharing information and the great potential for successful economic joint ventures, Miller and Phillips extended official invitations to the Khabarovsk and Sakhalin Dumas to visit Alaska in order to focus on specific topics that affect trade, development and commerce between Alaska and the RFE.

The Alaska delegation was comprised of legislative leaders, government officials, business and industry leaders and consultants. Please see attachment for a complete list of mission participants.

Alaska Businesses Acclaim Russian Far East Opportunities: Quotes from Business Participants.

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Alaska Diplomatic Trade Mission Participants

Alaska State Legislators include:

• Senator Mike Miller, President of the Senate
• Senator Loren Leman, Chair, Labor and Commerce Committee
• Representative Gail Phillips, Speaker of the House of Representatives
• Representative John Cowdery, Chair, Committee on International Trade and Tourism
• Representative John Davies, Member, Finance Committee
• Representative Fred Dyson, Member, Health Education & Social Services, Resources, State Affairs and Community and Regional Affairs Committees
• Representative Joe Green, Chair, Judiciary Committee
• Representative Irene Nicholia, Member, Resources Committee
• Representative Brian Porter, Member Health, Education & Social Services, Judiciary and Rules Committees
• Representative Joe Ryan, Member, Community & Regional Affairs, Labor & Commerce Committees

Business, Investment and Community Leaders include:

• Bill Allen, Chairman & Chief Executive Officer, VECO Corporation
• Dan Berkshire, Managing Director Transpacific Investment Fund
• Mark Bradley, Alaska Manager, Alaska Airgas
• Luann Cutler, Partner, Preston, Gates & Ellis, L.L.P. Attorneys
• Joeseph Donahue, Partner, Preston, Gates & Ellis, L.L.P. Attorneys
• Patrick Doran, Sales Manager, RussiaPacific Detroit Allison Diesel
• Rod Duplechin, Sales Director, kvaerner Oilfield Products, Inc.
• Michael Ebersole, Vice President, Veco Engineering
• Stanley Foo, Alaska Manager, Placer Dome of Alaska
• Paul Fuhs, Consultant on Ports & Uniform Commercial Code
• James Gibney, Vice President, Marriott Corporation
• David Ginnett, President & Chairman, Sakhalin Shelf Service Co.
• Dave Harbour, President & Chief Executive Officer, Action Security Co.
• Anatoly Ilyin, Deputy General Director, Wackenhut, Inc.
• Rita Ivanova, Russian Projects Manager, Troika Transport/The Jore Group
• Thomas M. Labno, Sales Director, Air Liquid/Big 3 Lincoln
• Joe Mathis, Manager, Business Development, NANA Corporation
• Tony Neal, President, CEO of "Vostokles" Timber JV in Khabarovsk, also Chair, International Construction Committee for Associated General Contractors of Alaska.
• Dave Parish, President, Parish & Associates
• Alex Ponomarev, Whisper Communications, Official Mission Translator
• Rose Ragsdale, Editor, Alaska Journal of Commerce
• John Ringstad, Consultant for British Petroleum
• Steve Smirnoff, Honorary Consul General to the Russian Federation
• Ronald E. Smith, Manager, Lubchem of Alaska
• Chris Sutton, President, Go Alaska, Inc.

State Officials and Energy Council Members include:

• John Pilkinton, Director of the Oil & Gas Audit Division of the Alaska State Department of Revenue
• Pat Pourchot, Legislative Director for the State of Alaska Governor’s Office
• Kathleen Leitgeb, Director of the University of Alaska Fairbanks Elderhostel Program
• Alabama Representative Al Knight, Energy Council Member