Greetings to the members of the American-Russian Chamber of Commerce & Industry (ARCCI) and to the readers of the Business Report. I am certain that the ARCCI's cooperation with the City of St. Petersburg, which is always open for constructive decisions and new ideas, will be fruitful.

(Vladimir A. Yakovlev, Governor of St. Petersburg

The election for governor of St. Petersburg was one of the main events that combined the reality of democratic transformations and demonstrated our ability to build life according to the norms and rules accepted in the world community. In this sense, the election of the President of Russia was decisive.

In this address, I would like to clarify the positions of the new administration of the City of St. Petersburg, and highlight some directions our activities will take.

We realize that once again the city has developed rather stable external relations, and its prestige in the world is still high. A number of prominent politicians, including heads of state and mayors of the large cities, continue to watch intently the transformation of the St. Petersburg economy and the development of its democratic institutions.

In St. Petersburg, the difficult and painful process of reforms was accompanied by the constructive work of many foreign business partners, investors, specialists - those who overlooked the risk and uncertainty, believed in us and worked with us side by side.

Our complicated history, underscored by the election of the president of Russia, was full of mistakes, unexpected turns, and difficult solutions to many problems. Instability interfered with the forward movement of the society, and lack of confidence in tomorrow hindered potential partnerships. Now it seems this is all in the past, and we can look to the future with confidence.

The leadership of St. Petersburg has the opportunity to once more learn lessons from the past and build priorities for the future in order to breathe new strength into business activity, return to projects which were put aside in the past, and introduce new offers necessary to the city.

Today we would like to assure you, the states you represent, and our friends and colleagues abroad, that St. Petersburg was and still remains open for mutually beneficial and constructive cooperation. We confirm our adherence to the international experience, to the ideas and proposals which help pave the way to a rich and prosperous Russia.

Our tasks are to support local producers, create a favorable investment climate, and guarantee the rights and interests of entrepreneurs. In the framework of measures already outlined by the government of Russia, we will continue to initiate legislative acts and decisions which stimulate business activity.

One of the main goals of our government is the support and advancement of joint enterprise. St. Petersburg is one of the Russia's leading cities for foreign investment. In the last five years, about ten thousand foreign enterprises have been registered in the city.

Preference was given to the food industry, transportation, communication, trade, public nutrition, mechanical engineering and metalworking. But that doesn't mean we have grown satisfied or complacent. As part of a program currently being outlined in support of small- and average-size business, special attention will be paid to providing conditions for new international partnerships.

The new leadership of St. Petersburg intends to continue in this spirit of international interaction, first with the countries and regions nearest to us. We should more closely cooperate with the CIS and the Baltic States to restore lost economic ties.

Our government will continue to come out in favor of lowering the threshold in political discussions and confrontations. Society is tired of the persistent thrust of political scarecrows on them. The city dwellers give their preference to the one who will help society overcome problems by practical measures. I am talking about the rejection attempts to lead society astray.

We called upon political activists and party functionaries to restrain ambitions, to turn their faces to everyday life. We want the intellectual, industrial and creative resources of people to be aimed at the development of our city. It is only on that road that the achievement of public approval is possible. That's exactly how the leadership of St. Petersburg intends to build its everyday activity.

One of the urgent program aims of the new administration is the maintenance of St. Petersburg as a huge megalopolis. Emphasis on the architectural beauty and historical artistic merits of the city has taken the focus off its sharpest problems. Meanwhile, the city's inhabitants suffer from fragmenting walls and balconies and collapsing roads.

The solution to this huge and difficult task of repair, reconstruction and restoration is to attract international experience, investments and technologies which would expedite improvement of the city. In this sense, many city problems have already been approached through solutions offered by German, Swedish, Finnish and Polish firms.

Throughout 1995, work between city administration and the European Bank of Reconstruction and Development continued. Among the projects that are being implemented, are two investment projects involving industrial enterprises: Baltic plant (42.5 million dollars) and the North-Western steamship line (51 million German Marks). Several new projects have been approved for financing including a circular auto road ($200 million dollars already invested) and defense installations ($200 million).

From 1992 to1995, within the framework of the program of technical assistance by the European Union, 140 projects totaling more than $130 million are in various stages of implementation in St. Petersburg. Equipment valued at $20 million was donated to these projects. We will continue to do everything necessary to strengthen this direction of the international collaboration.

St. Petersburg, as a subject of the Federation, lives and develops according to the common laws of the whole country. With that, the administration sees and knows what place the city occupies in economic, public, spiritual life of Russia. That's why we are not striving for special status for St. Petersburg. But we are for preserving the city's role in the creation of national wealth, the gross domestic product and the development and support of its activities.

Very precious for us in that sense is the study of the organization of life in our sister cities which include Milan, Shanghai and Osaka. We hope for the continuation of contacts with their leaders and are certain that their administrative experience in leadership, forming budgets and investment programs will be undoubtedly useful for us. Despite the difficulties, we will continue to increase our efforts toward strengthening the role and the place of St. Petersburg in the association of the largest cities of the world. Here, the leadership of the city insists that its unique look and concentration of its wealth and valuables appear in all their grandeur before the contemporaries by its 300th birthday.

In this sense, preparations for the Summer 2004 Olympic Games in St. Petersburg will transform our city into a landmark. We intend to continue to increase our efforts in order to persuade the International Olympic Committee to render us that confidence. We have experience, strength, opportunities, resources, the support of the Government of Russia, of the President(in short, everything necessary for this outstanding sporting event to become a reality on the banks of the Neva River.

Confirming our loyalty to past international agreements and treaties, we would like to turn St. Petersburg's vast external relations into practical relationships. The government will devote its efforts to forming a favorable business climate, searching for tax and legislative simplifications, and providing normal conditions of entrepreneurs and their activities.