After Record Year, OPIC Expands its Services in Russia

In January, Overseas Private Investment Corporation (OPIC) President and CEO Ruth Harkin announced that the organization had just closed the books on a record year of supporting private investment in Russia. In a year that saw much political and economic uncertainty in Russia, OPIC supported more American investment there than ever before. OPIC backed over forty projects with more than $1 billion in combined project financing and political risk insurance. These projects pushed OPIC's total support for long-term investment in Russia to more than $3 billion in the last three years.

Mrs. Harkin also said there are 318 projects for which U.S. companies have registered for OPIC support in Russia. These projects are in many sectors and could result in $30 billion in new investment in the country. Mrs. Harkin said that in order for many of these investment to happen, important reforms, particularly in the legal area must take place. She said the necessary changes include tax reforms, enforcement of arbitral awards, production sharing agreements, and a bilateral investment treaty.

With the recent approval of political risk insurance for a new defense conversion project, Mrs. Harkin announced that OPIC has now approved more than $500 million in insurance and finance support to defense conversion projects in Russia.

Additionally, Mrs. Harkin announced that OPIC will now offer full coverage for currency inconvertibility to American businesses investing in Russia. Previously, the agency had offered this coverage on a limited basis, up to $5 million per project. Now, that coverage will be expanded to $200 million per project, the same level of coverage as is offered in other countries.

OPIC's decision to expand its services comes as its confidence in Russia's economic reforms grows and cooperation between American and Russian business and government solidifies. "The emerging markets are today's battlegrounds for U.S. businesses... While most countries provide subsidized investment support to their companies, OPIC's programs help level the playing field for American businesses and workers at no net cost to the U.S. taxpayer," explains OPIC President and CEO Ruth Harkin.

Contact OPIC on the World Wide Web at http://www.opic.org