Russia is seeking substantial debt forgiveness from its Paris Club debt of some $42 billion. Germany holds about half this official debt; the United States share is 6%. The United States may adopt a policy of no debt relief, of rescheduling payments of principal and interest, or of debt forgiveness. The official position of creditor countries in the Paris Club is for no debt forgiveness. Many in Congress support linkage of any debt relief to an end of the Chechnya conflict and of aid to Serbia, and other foreign and security issues. H.R. 4118, "Russian-American Trust and Cooperation Act of 2000," dealing with a Russian intelligence facility in Cuba, was reported out of the U.S. House of Representatives to be debated starting Wednesday, July 19, 2000. Paris Club negotiations will be discussed at the Okinawa G-8 meeting, July 21-22, 2000. This report will not be updated.

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At several meetings with Russian President Vladimir Putin, President George W. Bush stated that his administration will work with the Congress to grant Russia permanent 'normal trade relations" (PNTR) status. The change in Russia's trade status will require legislation to lift the restrictions currently applied to Russia under Title IV of the Trade Act of 1974, which includes the "freedom-of-emigration" requirements of the Jackson-Vanik amendment. The Bush Administration requested the 108th Congress to act. Two bills were introduced in the Senate and one in the House but none of them received further congressional action.