The United States firmly supports Russia's development into a democratic/market society, and Russia's further integration into the international community. The United States has made available substantial bilateral assistance -- and has led international aid efforts. The United States has also taken steps to clear from the books Cold War era legislation limiting contacts with Russia. On April 2, COCOM ceased to exist, and we are currently working with our partners to form a new international export regime which will not be directed against Russia.
Even more telling of the business climate is the ever-increasing wave of crime which has swept over Russia with the passing of Soviet control. Police are underpaid, outnumbered and outgunned. Individual and organized criminal elements flourish. Especially problematic is racketeering, which raises costs for local and foreign businesses alike.
Protectionist elements in the Federal Assembly have raised the possibility of retaining certain elements of Soviet policy towards foreign investors. This might take the form of limits on foreign share holdings, limitations on property ownership, or an increased tax burden on foreign businesses. This pressure for greater protectionism reflects the widespread perception that foreign business is taking advantage of the current unstable situation to make quick money, and these proposals could make foreign investors wary of further involvement.
Executive Branch: Under the constitution, the executive branch is led by the President, who is elected for a five-year term. President Yeltsin's term expires in 1996. He has the right to choose the Prime Minister (currently Viktor Chernomyrdin), with the approval of the legislature. The Prime Minister in turn appoints ministers, who are responsible for the execution of legislation and decrees in their respective fields.
Judicial Branch: The judicial branch comprises the Constitutional Court, which reviews the constitutionality of federal legislation; the Supreme Court, which is the highest civil and criminal judiciary body; and the Supreme Arbitration Court which resolves economic disputes between subjects of the Federation. The Constitutional Court held its first session in the spring of 1995.
Legislative Branch: The legislative branch is composed of a two-chamber federal assembly, elected for the first time on December 12, 1993. The Upper House, the Federation Council, consists of two representatives from each subject of the Russian Federation. The Federation Council passes decrees on federation disputes and reviews legislation passed by the Lower House, including the federal budget. The Lower House, or State Duma, is made up of 450 deputies, one-half selected on the basis of geographic districts and one-half on the basis of party lists. The Duma passes most federal laws. Duma members are elected to four-year terms (after an initial two-year term which began in 1994). The next legislative elections are scheduled for December 1995.
Political Parties: There are over twenty parties and fractions represented in the Parliament. Pro-reform forces in the Federal Assembly are represented most notably by Yegor Gaydar's "Russia's Choice," generally considered the strongest advocate of market reform. Grigoriy Yavlinskiy's "Yabloko" party also supports free markets, but is more inclined to use government funds to ensure a strong social safety net. Sergey Shakhray's "Party of Russian Unity and Concord" is quite progressive but more reserved in its support of radical economic reform, supporting a greater role for the local regions as well as a mixed economy. "Centrist" groups pushing for a slower approach to reform include the "New Regional Policy," a loose grouping of centrist politicians; "Women of Russia;" and "The Liberal Democratic December 12 Union," as well as many independent deputies. There is also a wide range of parties standing firmly in opposition to market reforms. The "Russian Liberal Democratic Party" is a radical right-wing nationalist party led by Vladimir Zhirinovskiy. Lapshin's "Agrarian Party" represents Russia's agricultural establishment and favors continued government support for the agricultural sector. The reconstituted Communist Party is headed by Gennadiy Zyuganov. The anti-government parties hold a majority on most issues. In the spring of 1995, President Yeltsin established two "centrist" movements which he hopes will be a broad-based coalition behind his policies. The "Russia is Our Home" movement led by Prime Minister Chernomyrdin comprises center-right political leaders and factions, leading commercial structures, and many regional governors. The center-left movement led by Duma Speaker Ivan Rybkin includes leading social democratic political leaders and movements. Chernomyrdin's movement is far better organized and well-financed than Rybkin's at this time.