Progress of implementation
of the Hashimoto-Yeltsin Plan

         On the occasion of Prime Minister Obuchi's official visit to the Russian Federation on November 13, 1998, the two countries signed the Investment Protection Agreement. At present both countries are advancing procedures for domestic recognition, with the goal of bringing the agreement into effect as soon as possible. (Japan already completed the procedures required by domestic law on June 2, 1999.)

         On the occasion of Prime Minister Obuchi's official visit to the Russian Federation in November 1998, the two countries created a detailed concept for the Japan-Russia Investment Company, including the organizational format of the company, as well as a scheme for capital provision and the approval of investment proposals.

         A high-level expert was dispatched from the Economic Planning Agency of Japan to the Ministry of Economy of the Russian Federation for a period of one year in relation to the Russian Federation's Development Budget. The results of said expert's activities were submitted to the Government of the Russian Federation as policy recommendations for structural reforms of the Russian economy. In addition, on the occasion of the economic policy dialogue conducted in March 1999 it was decided that one of the topics of joint research between the Economic Planning Agency of Japan and the Ministry of Economy of the Russian Federation for FY1999 would be policy-based financing in a market economy.
         From November to December 1998, the Government of Japan conducted seminars in the Russian Federation taught by experts from the Japan Development Bank and other institutions concerning such topics as Japan's experiences with policy-based financing. In addition, the Government of Japan is to accept personnel from the Russian Government involved with the establishment of a Russian Development Bank for training at the Japan Development Bank in December 1999.
         The Government of Japan accepted trainees from the Russian Government in charge of economic policy planning in December 1998, training them in such areas as attracting investment and developing small- and medium-sized enterprises, in locations including the Japan External Trade Organization.
         In the near future, the Government of Japan will dispatch an expert in the field of industrial policy to the Ministry of Economy of the Russian Federation from September to October 1999.

         The Government of Japan's policy is to support Russia's conversion of military resources to civil sector via the ISTC, through such assistance as that for the closed cities project.
         Relevant Japanese government institutions, together with the ISTC Secretariat, held informational meetings for private enterprise in January and April 1998 and January 1999. In addition, mini-workshops on the same topic were held in Osaka and Tsukuba. Nine Japanese companies, as well as the National Space Development Agency and the Japan Atomic Energy Research Institute, have already participated in ISTC activities.

         Japanese business groups have sent several missions to the Russian Federation, including a mission by the Japan Federation of Economic Organizations (Keidanren) in November 1998 and missions by the Japanese Association of Corporate Executives (Keizai Doyukai) in February and September 1998. Another mission by the Japanese Association of Corporate Executives (Keizai Doyukai) visited the Russian Federation in April 1999.

         In a series of exchanges between the Japanese and Russian private-sector business groups, project plans in the Russian Far East where Japan could consider the possibility of cooperation are being created. The Government of Japan provided funding cooperation through the Cooperation Committee to conduct feasibility studies concerning these projects.

         In March 1999, meetings of the Subcommittee on economic relations between Japan and Russian Far East of the Japan-Russia Intergovernmental Committee on Trade and Economic Affairs and the private-sector Japan-Russia Far East Economic Conference were simultaneously held in Tokyo.

         Since late March 1998, the Government of Japan has accelerated the procedures for issuing visas to Russian businessmen and instituted a system of multiple-entry visas for them. At present, adjustments are under way to expand the eligibility for multiple-entry visas.

         In February 1998, the Government of Japan held an APEC participation assistance consultation in Moscow as a concrete measure to advance the smooth participation of the Russian Federation in APEC. In addition, in March 1998 Japan held a discussion in Moscow regarding possible contributions of the Russian Federation with regard to such topics as energy and small- and medium-sized enterprises. The Russian Federation has been an official participant in APEC since the November 1998 APEC Ministerial Meeting in Kuala Lumpur. In early March 1999, three trainees from the Ministry of the Russian Federation for Anti-monopoly Policy and Support of Entrepreneurship participated in an APEC training course on competition policy held in Thailand, with the assistance of the Government of Japan. A study mission made up of experts from relevant Government institutions of the Russian Federation is scheduled to visit Japan in early 2000.

         Japan and the Russian Federation held bilateral negotiations on the Russian Federation's accession to the WTO in March and December 1998. The Government of Japan provided technical assistance (in the areas of services, intellectual property rights and standards and certifications) related to the Russian Federation's accession to the WTO from October to November 1998, as part of its cooperation aimed at realizing the Russian Federation's rapid accession to said organization. In late March 1999, the Government of Japan invited experts from the Ministry of Trade of the Russian Federation to Japan. The Government of Japan intends to continue supplying cooperation for the invitation of Russian experts to Japan and the dispatch of Japanese Government experts to the Russian Federation.

         The Government of Japan, in order to provide comprehensive technical assistance at the regional level, has decided to expand the Japan Center network, establishing a new Center in St. Petersburg to be added to existing network of Centers located in Moscow, Khabarovsk, Vladivostok, and Yuzhno-Sakhalinsk; at present, preparations are being advanced for the establishment of this new Center.

         In July 1998, a loan agreement was signed for co-financing with the World Bank's Second Coal Sector Adjustment Loans Program (Japanese yen equivalent of US $800 million), and US $400 million was immediately disbursed.

         Japan and the Russian Federation participated in meetings held in Tokyo and Moscow in March and October 1998, respectively, to review the progress of implementation of the Hashimoto Plan and to exchange opinions concerning future activities. Also, a detailed implementation plan was approved for FY1998.
         In March 1999, an industrial policy seminar was held in Moscow using a restructuring manual aimed at Russian private enterprise (the manual was prepared by Japan at the request of the Ministry of Economy of the Russian Federation)

         Japan and the Russian Federation participated in meetings held in Tokyo and Moscow in March and October 1998, respectively, to exchange opinions concerning Russian economic policies within the framework of economic policy dialogue. Minister Shapovaljyants of the Ministry of Economiy of the Russian Federation visited Japan in March 1999, where he exchanged opinions regarding this matter. Minister Shapovaljyants also participated in the Seventh Symposium on the Russian Economy, held during his visit.

         Ms. Irina Hakamada, Chair of the State Committee for Support and Development of Small Businesses, visited Japan in January 1998, during which she exchanged opinions with relevant Japanese government organs, and encouraged the cooperation of both countries in this area. The Japan Small Business Agency accepted a total of 20 small- and medium-sized enterprise managers and others for training in the management field, with one group of 10 receiving training in February 1998 and the other in February 1999. Following the First Japan-Russia Small- and Medium-sized Enterprises Policy Discussion held in October 1998, the two countries prepared a document on November 13, 1998 on the occasion of Prime Minister Obuchi's visit to the Russian Federation which set the future direction for cooperation. A 10-person mission consisting of managers of small- and medium-sized enterprises and others from Japan was dispatched to Moscow and Ekaterinburg from February 28 to March 8 1999, where they held management seminars. The Government of Japan dispatched a Japanese expert on small- and medium-sized enterprises to Ministry of the Russian Federation for Anti-monopoly Policy and Support of Entrepreneurship for a three-month period starting in mid-June. Furthermore, the Government of Japan plans to accept Russian experts into governmental small- and medium-sized enterprise financial institutions in order to develop the Russian Federation's governmental small- and medium-sized enterprise financial and insurance institutions.

         The Government of Japan supported the activities of a mission that the Japan Association for Trade with Russia & Central-Eastern Europe dispatched to Russia between end-June and July 9, 1999, for the purpose of explaining such matters as technical assistance methods to the Russians.

         Russian survey missions on Trans-Siberian freightage revival have visited Japan twice, in order to exchange opinions with the Japanese counterpart on the matter. In relation to this, preparatory discussions were held in September 1998 between the marine transport authorities of both countries to discuss issues related to surface transport connecting Japan and the Russian Federation.
         A survey team from the Ministry of Transport of Japan was dispatched to Russia in June 1999.

 In June 1998, Japan provided technical cooperation concerning the construction and management of toll roads.

         At the request of the Government of the Russian Federation, the Government of Japan dispatched two experts from the Ministry of Labour to Moscow in late February 1999, who held a seminar there on the workers' compensation insurance system. The Government of Japan plans to continue to provide appropriate assistance with the aim of bringing a workers' compensation insurance system into operation in the Russian Federation.

         Since November 1997, 819 Russian trainees have visited Japan for training and 3,376 have received training at Japan Centers active in the Russian Federation. A training program was also implemented in which Russian businessmen were directly accepted by Japanese companies.
         Also, 29 Russian trainees have received training in programs for Russian civil servants implemented in Japan.
         As part of the expansion of its cooperation in the field of personnel training, Japan expressed its intention to accept 500 trainees for training in Japan and 1,600 for training in the Russian Federation in FY1999 in the framework of its cooperation in the Russian Business Manager Training Program, and to accept in the same year 100 trainees for training in Japan in the framework of its cooperation in the Russian Civil Servant Training Program.

         In January 1998 the two countries participated in the first Japan-Russia Energy Consultation in Moscow. Then-Minister for Fuel and Energy of the Russian Federation Sergei Kiriyenko visited Japan in March 1998, and E.S. Telegina, Deputy Minister for Fuel and Energy of the Russian Federation, visited Japan in October 1998 to attend the Third APEC Energy Ministers' Meeting, at which time they exchanged opinions on advancing and strengthening dialogue in the energy field.
         In July 1999 the second Japan-Russia Energy Consultation was held in Moscow.

(a) Dispatch of a survey team to explore the possibility of joint implementation projects aimed at reducing greenhouse gases
         On the occasion of then-Prime Minister of the Russian Federation Sergei Kiriyenko's visit to Japan in July 1998, Japan and the Russian Federation announced surveys of 20 possible joint implementation projects based on the COP3 Agreement. A combined government and private mission was dispatched to Moscow between 3 and 6 November 1999; the mission met with relevant parties from the Russian Government and Russian private enterprises, and the Japanese enterprises gave explanations of the 20 candidate projects. Also, the mission visited Russian energy-related enterprises, including the Unified Energy System, and exchanged views.
(b) Projects to evaluate the efficiency of electricity generation and transmission
         A survey team from Japan Electric Power Information Center, Inc. was dispatched to the Russian Federation from September 29 to October 10, 1998
(c) Electricity survey mission
         A survey mission was dispatched to Eastern Siberia and the Far East Region between 9 and 17 December 1998. The mission visited such locations as local administrative bodies, local electric power companies, power plants, and energy research institutes, surveying the current status, problem areas, etc. of the electric power industry. A summary report including the results of this survey and suggestions based on Japan's experiences is to be prepared for Russia's electric power industry as it moves forward with privatization,.
(d) Training in Japan for Russian trainees involved in the electricity field
         Experts from the Ministry of Fuel and Energy of the Russian Federation, the Unified Energy System, and local electric power companies were accepted to Japan between 15 and 22 March 1998, and attended discussions, seminars, etc. Nine Russians, including executives from the Ministry of Fuel and Energy of the Russian Federation, personnel in charge of energy conservation from the Unified Energy System, and executives from private electric power companies, were accepted to Japan between January 24 and February 6, 1999; their activities included discussions and seminars concerning energy conservation. In addition, 10 Russian executives from the Ministry of Fuel and Energy of the Russian Federation, Unified Energy System, and Irkutsk Energo were accepted for the period from March 8 through 12, 1998, and underwent training concerning the management and operation of electric power companies in a market economy.

         With regard to other Japan-Russia activities in the energy sector, a petroleum and natural gas development project in Sakhalin is progressing, and crude oil production began on the Sakhalin II Project in July 1999.

The construction of a radioactive liquid waste treatment plant in the Far East was completed and inactive commission of this plant is being carried out.

         A Japan-Russia Nuclear Consultation was held in March 1998.

         In October 1998, a meeting of experts was held in order to study technical cooperation concerning fast-breeding reactors. At present, relevant institutions from Japan and the Russian Federation are studying plans for cooperation in this area.

         In April 1998, the two countries held the first meeting of the Japan-Russia Joint Committee on Cooperation in Space.

         Both countries have submitted specific proposals for cooperation in such areas as remote sensing and the utilization of space; these proposals are currently being reviewed by related research institutions for the purpose of defining concrete opportunities for cooperation. Also, both countries are committed to actively participating in the space station plan together with the United States of America, the European Countries and Canada. After the Russian and U.S. components which have been launched are assembled, a Russian component is to be launched.