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US-Russia economic ties put on back burner of Moscow summit
WASHINGTON. May 7: The United States has placed economic cooperation with Russia on the back burner for the Moscow summit as leaders tackle difficult foreign policy issues that will have an impact on all bilateral ties, reports AFP.
While president Bill Clinton was to reassert US support for Russian free-market reforms, he was also to warn Moscow that its conduct at home and abroad will determine the course of future economic cooperation with the west.
This is not an economic summit." Treasury Secretary Robert Rubin told reporters ahead of the May 9-10 meeting.
But he added: "on the other hand economic policy Is integrally related to foreign policy."
The administration has argued that Moscow's failure to end the bloodshed in Chechnya and its planned sale of nuclear reactors to Iran might stall full membership
into the group of seven club of rich countries.
“As far as the penalties. I can only repeal that the trend of Russia's acceptance into western Institutions will be importantly influenced by the way they conduct themselves in such matters as Chechnya as well as others.’’ Secretary of State Warren Christopher said Wednesday.
The carrot-and-stick approach to Russia has toughened as Moscow has shown a firm resolve to forge ahead with a one-billion-dollar contract to supply Iran with nuclear reactors, which the United . States contends Tehran will use to build bombs.
Clinton was to remind president? Boris Yeltsin ahead-of the G-7 summit in Halifax. Canada, next month that" one of the G-7 countries feel that it's safe to cooperate with Iran on nuclear matters." Christopher said.
President Boris Yeltsin has called for widening the G-7 to
Include Russia into a G-8 and views membership into the top Club ds the crowing achievement of Moscow's efforts lo gain access to the wealth of the west.
The move to tone down economic cooperations comes amid mounting criticism from Republicans in Congress that the administration is handing out rewards lo Russia as Moscow pursues anti-western policies.
Rubin said the United States was prepared to support in 1996 Russia's longstanding demands for debt rescheduling. "if Russia sticks with its programme.
'This Is an enormous incentive in addition to,the IMF programme for sticking to reform." he said.
After more than two years of difficult reforms, Russia finally won in 1995 the blessing of the International Monetary Fund for its efforts, earning approval of a 6.8 billion dollar financial aid package.