Official Visit to the Russian Federation by Prime Minister Keizo Obuchi

November 1998

Official Visit to the Russian Federation by Prime Minister Keizo Obuchi

I. Signed Documents

1. The Moscow Declaration on Building a Creative Partnership between Japan and the Russian Federation (Signed by Prime Minister Obuchi and President Boris Yeltsin on 13 November.)

[Outline]

2. Agreement between the Government of Japan and the Government of the Russian Federation concerning the Promotion and Protection of Investments
(Signed by Ambassador of Japan to the Russian Federation Takehiro Togou and Minister of Economy of the Russian Federation Andrei Shapovaliants on 13 November.)

- Main contents
Stipulates comprehensively and in detail matters on the promotion and protection of investments with a view to improving the investment environment. The conclusion of this Agreement is expected to contribute to an increase in investment and a closer economic relationship between the two countries by fostering a healthy investment environment.

Specifically, the Agreement contains provisions similar to investment protection agreements which Japan has entered into in the past, including those on most favored nation treatment in such areas as admission of investments; most favored nation treatment and national treatment in such areas as all asset investment categories, returns and business activities in connection with the investments and access to the courts; measures to be taken in the event of nationalization, expropriation or outbreak of hostilities; subrogation of rights, such as the right to make claims based on investment guarantees; freedom of remittance; and submission of investment disputes to arbitration.

Moreover, based on international trends in the development of the investment environment and the current state of the investment environment in Russia, the Agreement includes new provisions not found in previous investment protection agreements entered into by Japan, such as on the transparency (the public announcement of laws and regulations concerned) and the prohibition of trade-related investment measures.

3. Memorandum on Cooperation between Japan and the Russian Federation in the Tourism Sector
(Signed on 13 November by Ambassador of Japan to the Russian Federation Takehiro Togou and Chairman of the State Committee of the Russian Federation for Physical Culture and Tourism L.V. Tyagachev.)

- Main contents
The Memorandum focuses on the role that bilateral cooperation in the tourism sector can play in enhancing mutual understanding between the peoples of the two countries. It lists areas with future potential for bilateral cooperation and states that as the first step in advancing cooperation in these areas, coordination between the two governments will be promoted with a view to holding intergovernmental consultations on bilateral cooperation in the tourism sector as early as possible.

4. Memorandum on the Promotion of Cooperation between Japan and the Russian Federation in the Environment Sector
(Signed on 13 November by Ambassador of Japan to the Russian Federation Takehiro Togou and Chairman of the State Committee of the Russian Federation for Environmental Protection V.I. Danilov-Danilyan.)

- Main contents
Between Japan and Russia, various forms of joint research and joint study as well as other projects regarding protection of the ozone layer, studies on acid rain, measures against pollution of the oceans and other environmental conservation areas have been and will be carried out, through the environmental conservation cooperation plan based on the Agreement between Japan and the Union of Soviet Socialist Republics on Cooperation in the Sector of Environmental Protection, and other bilateral and multilateral frameworks. This Memorandum confirms these various projects.

5. Basic Directions of Cooperation in the Field of Posts and Telecommunications between the State Committee for Communications and Informatization of the Russian Federation and the Ministry of Posts and Telecommunications of Japan
(Signed by Minister of Posts and Telecommunications Seiko Noda in Japan and Chairman of the State Committee for Communications and Informatization of the Russian Federation A.E. Krupnov.)

- Main contents
Chairman of the State Committee for Communications and Informatization of the Russian Federation A.E. Krupnov proposed the exchange of this cooperation document in October 1997, and its contents were settled last July. This document establishes the basic directions of cooperation between Japan's Ministry of Posts and Telecommunications and the State Committee for Communications and Informatization of the Russian Federation in the areas of posts, telecommunications, and science and technology.

II. Other Joint Documents

1. Detailed Concept on the Establishment of the Japan-Russia Investment Company

- Main contents
At the Japan-Russia Summit Meeting in Kawana in mid-April, leaders of both countries decided to jointly establish an investment company to promote Japanese direct investment in the Russian Federation. The "Detailed Concept on the Establishment of the Japan-Russia Investment Company" further elaborates the "Basic Provisions" developed on the occasion of former Prime Minister Sergei Kirienko's visit to Japan in July, by incorporating provisions on the organizational structure of the investment company, the framework of the approval of investment proposals and financial contribution, and support by the two governments (provision of technical assistance, cooperation in receiving approvals or licenses and the settlement of disputes, etc.) and other areas.

2. Joint Announcement on Cooperation between Japan and the Russian Federation to Foster Small-and Medium-size Enterprises in Russia

- Main contents
Cooperation on small- and medium-size enterprises is designated as an area deserving special attention in the Hashimoto-Yeltsin Plan announced at the Krasnoyarsk Summit Meeting in November 1997. A document establishing basic principles of cooperation in this area was made at the Kawana Summit Meeting last April. In the Joint Announcement, both sides appreciate the cooperation being promoted based on this document, reaffirm that the fostering of small- and medium-size enterprises is essential to the strengthening of the Russian Federation's industrial competitiveness, and express the view that the further strengthening of Japan's efforts to share its own experience in this area with Russia is significant. In the wake of the first meeting of the Japan-Russia Policy Consultations on Small- and Medium-size Enterprises in October, the two countries reaffirmed that such consultations will continue to be held.

3. Japan-Russia Joint Announcement on the Implementation of the Hashimoto- Yeltsin Plan

- Main contents
This Announcement gives the main results of bilateral cooperation in economic areas achieved so far and plans for the future, based on the Hashimoto-Yeltsin Plan prepared by then-Prime Minister Ryutaro Hashimoto and President Yeltsin at the Japan-Russia Summit Meeting in Krasnoyarsk in November 1997.

4. Joint Press Release on the Development of Cooperation between Japan and the Russian Federation in the Energy Sector

- Main contents
The Joint Announcement states the significance of Japan-Russia cooperation based on the Japan-Russia Energy Consultations under the Hashimoto-Yeltsin Plan and explains the cooperation in areas including mutual cooperation on the supply and demand aspects of energy as well as feasibility studies of joint implementation projects aiming to reduce greenhouse gases.

III. Announcements of the Government of Japan

1. Announcement by the Government of Japan on the Promotion of the "Partnership for Reform" (on a major expansion of intellectual and technical cooperation)

- Main contents
The policy of the Government of Japan is to give high priority to the implementation of the following series of measures whose main goals are to dramatically expand the intellectual and technical cooperation that Japan has extended so far as well as to strengthen its efforts to provide knowledge to the relevant organizations in Russia on Japan's postwar economic and industrial policies which can be applied to Russia. To promote these measures, the Government of Japan decided to contribute approximately US$ 100 million to the Cooperation Committee.

(1) Technical cooperation to promote Russian industrial development
(2) Sharing of know-how on policy financing
(3) Expansion of the network of Japan Centers and the active use of Small- and Medium-size Enterprise (SME) Centers
(4) Cooperation to promote the integration of Russia into the international economic system

2. Announcement by the Government of Japan on Measures for the Drastic Expansion of Personnel Exchanges at the Citizen Level between Japan and Russia

- Main contents
The "constant dialogue" between ministers and high-level government officials of both sides, as well as other factors, is contributing to the current, unprecedented impetus towards the improvement of Japan-Russia relations. In order to consolidate these developments, the Government of Japan decided to create a new bilateral framework and to promote exchanges among members of the younger generations, such as those among youths and young intellectuals in both countries, who will come to play a prominent role in future Japan-Russia relations. Specifically, the Government of Japan is considering plans to establish with Russian cooperation a Japan-Russia Youth Exchange Center (Obuchi-Yeltsin Center), by making a contribution of approximately US$ 20 million to the Center and using it for implementing short- and long-term dispatch and invitation programs, including a "Japan-Russia Youth Exchange Program," an "Invitation of the Leaders of the Next Generation" program and a "Fellowship for Young Researchers."

3. Announcement by the Government of Japan on Japan-Russia Humanitarian and Medical Cooperation (Emergency Extension of Medical Supplies to Russia)

- Main contents
The Government of Japan decided to make an emergency extension of medical supplies totaling approximately US$ 10 million through the Cooperation Committee to benefit Russian nationals who face difficulties in receiving medical care.


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