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But having been involved in this relationship for over 36 years, they are more than the
sum of their parts.
And if you think I’m exaggerating and overstating the case, consider the following statistics
-- or polling. In December of 2008 -- December of 2008, one month before we were sworn in
as President and Vice President, polling showed that only 17 percent of all Russians had a
positive opinion of the United States -- 17 percent. This year, that number has jumped
to over 60 percent. Our goal is to have it continue to climb.
That same year, Americans ranked Russia as one of the top five countries threatening
American security -- two years ago. This year, only 2 percent of the entire American population
say they view Russia as a threat. All of this leads to one very important conclusion in
the mind of one Vice President that I think is now beyond dispute: the reset is working.
Working for all of us, working for Russia. And I would presumptuously suggest working
for the world.
But there is still, still much work to be done to enhance our security cooperation and
our closeness.
On the Caucasus -- we have a genuine disagreement not only with your leadership but with the
vast majority of the Russian people over Georgia. But there’s a larger principle at stake
here in our view -- and I want to be straightforward because if friends cannot be straightforward
with friends, it really isn’t friendship based on mutual trust.
We think there’s a larger principle at stake here. As I said when I announced the reset
at Munich I said, “It will remain our view that sovereign states have the right to make
their own decisions and choose their own alliances.”
And further: “We will not recognize any state having a sphere of influence.” And
almost regardless of the difficulty, we don't support any state deciding through force changing
the leadership of an elected -- democratically elected individual.
We have also worked closely, though, with both Russia and Georgia to reduce the threat
of further conflict. As a result, Georgia recently restarted its commitment -- restated
its commitment to non-use of first use of -- non-use of force, and commercial flights
have resumed between Moscow and Tbilisi. But we must do more to assist those displaced
by the 2008 conflict and enable normal travel and commerce to occur.
Our joint diplomacy was essential and is essential in ending conflicts in other areas. Excuse
me -- Nagorno-Karabakh, where I would again commend President Medvedev for his tireless
work for a peaceful and permanent settlement there.
But the next frontier in our relationship -— and the main area in my view and the
President of the United States’ view of future opportunities and challenges -—
will be building stronger ties of trade and commerce that match the security cooperation
we have accomplished over the last two years and hopefully will continue to grow.
In the 20th Century, the wealth of a nation was measured by the abundance of its natural
resources, the expanse of its landmass or the size of its army. Russia had all of those
things.
But in the 21st Century, the true wealth of a nation is found in the creative minds of
its people and their ability to innovate. There, too, Russia is remarkably blessed.
Unleashing Russia’s full potential will be a boon and an opportunity not only for
the United States and for Russians, but again for international commerce and peace and justice.
Already, our economic relationship is moving to center stage. Pepsico has made a multi-billion
dollar investment in Russia -- Russia’s leading juice and dietary producer. Imagine
five years ago, the likelihood that an American company could buy, in effect, the largest
of anything in Russia.
Chevron and ExxonMobil recently announced major new deals with Russian partners. General
Electric is undertaking a major expansion of its operations here. And John Deere last
year opened a major manufacturing center in Moscow -- in the Moscow region -— and is
already -- I met with the President -- I think he may be here -- yesterday -- they're already
doubling its capacity and as a consequence, employment.
And Alcoa is working closely -- very closely -- with a nanotechnology firm, Rusnano, on
an array of high-tech products that are the future.
This week a coalition of public and private sector partners in Russia and the U.S. announced
a new program, as well, supported by an American company, Johnson & Johnson. That program will
provide pregnant women and new mothers with health information via text messages -—
a great example of how civil society, government, and the private sector can work together to
find innovative solutions to shared challenges -- real challenges to real people, ordinary
people.
And just yesterday, I witnessed the signing of a $2 billion sale of eight Boeing 777 aircraft
to Aeroflot, expanding last year’s agreement to sell 50 737s to Russian Technologies. These
contracts were able to be done and the plane was able to be built I might add because of
Russian titanium, ingenuity and the engineers here; as well as the brilliant engineers and
workface back in the United States. These contracts will create or sustain tens of thousands
of jobs in Russia and in the United States.
On his visit to Silicon Valley last year, President Medvedev made clear Russia’s desire
to bolster our partnership in the innovation economy -— a priority the United States
shares, and the President of the United States has announced as the hallmark of what we’re
attempting to do.
Yesterday, I had the opportunity to -- Skolkovo -- to be in Skolkovo -- a high-tech hub on
the outskirts of Moscow that has the promise of becoming the Silicon Valley of Russia.
Closer cooperation will allow American companies to benefit from greater access to Russia’s
deep pool of talented engineers, mathematicians and computer scientists.
Mr. President, if you’ll forgive me to -- I will not mention the context, but yesterday
we had this discussion -- a roundtable discussion of American businesses and CEOs from Russian
business. A Russian businessman said something that was true. He said the reason why it’s
good to be here in Russia and investing -- the United States -- is because of its market.
An interesting comment from the chairman of the board of Boeing in Russia, he said, with
all due respect to my good friend, that may be true, but that's not the reason we’re
here. Other countries have four, five, six and seven times the capacity to purchase our
planes in terms of their needs. But we’re here. He said let me tell you why we’re
here. We’re here because the best engineers in the world are here. Many educated at this
great university.
We’re also providing -- not as a gift. When I say providing it sounds like we’re providing
a gift -- we’re also -- American venture capitalists and other foreign investment is
flowing into the Russia’s economy to allow it to diversify beyond your abundant natural
resources -- metals, oil and gas -- and help Russia -- Russian start-ups get their ideas
to market.
Those of you who are studying business know that it’s one thing to have an idea, it’s
another thing to get to market. It takes people willing to make a gamble, make an investment,
make a bet.
Already, several of America’s leading firms have shown their support for this vision,
by committing to invest in the case of several venture capitalists over $1 billion dollars
-- already committed -- investing in Russian high-tech industry.
But despite these steps, our trading and investment relationship is not what it should be. As
a matter of fact, it was higher years ago than it is now. Russia was America’s 37th
largest export market in 2010. The value of the goods that cross our border, the United
States border with Canada and Mexico every few days exceeds the annual value of our trade
with Russia. We’ve got to do better. We’ve got to do better. And I believe we can.
This is one of the reasons the President and I so strongly support Russians accession to
the World Trade Organization. Accession will enable Russia to deepen its trade relations
not only with the United States, but the rest of the world. And it will give American companies
a greater and more predictable -- important word, predictable -- access to Russia’s
growing markets, expanding both U.S. exports and employment.
The renewed energy that Russian negotiators have brought to the table in this accession
effort and Moscow’s political will to get the job done are for the first time in a long
time genuinely moving things forward.
We’re making progress on these issues that have caused so much friction in the past.
We’re making progress on agricultural trade, sanitary regulations, enforcement of intellectual
property rights, though we still have more work to do.
So let me make this as clear as I possibly can: President Obama and I strongly support
and want to see Russia in WTO. We’ve made that clear to the Congress; we’ve made that
clear the world; and we’ve made that clear to anybody who is willing to listen.
It’s better for America -- and presumptuous of me to say this, never tell another man
his business or another country their interest -- but it’s better for America, and I believe
better for Russia to be able to trade with each other under predictable and transparent
rules. And that’s also why we’re going to work with Congress to terminate the Jackson-Vanik
amendment.
These steps are critical components to our Administration’s trade agenda. There used
to be a bank robber in America in the ‘30s. His name was Willie Sutton. And they once
asked Willie Sutton, why do you rob banks, Willie. He said, that’s where the money
is. (Laughter.) We’re not doing Russia a favor. This is in the overall best interest,
we think, of Russia, but we know for the United States. We know for our unemployment -- our
employment to grow, trade, exports have to grow as well.
So we expect Russia’s leaders to continue working with us to move the processes along.
But you in this room know as well as anyone that even if liberalizing our trading relationship,
Russia’s business and legal climate quite frankly is going to have to continue to improve
because right now for many companies it presents a fundamental obstacle.
In early 2008, President Medvedev described Russia as, and I quote, “a country of legal
nihilism,” -- not my quote, his quote -- and he prescribed a set of reforms.
The simple fact is this: Pragmatic businessmen,