MALONEY PRAISES NYT REPORT OF WHITE HOUSE CALL TO BLOCK EX-IM's RUSSIAN OIL COMPANY GUARANTEE; Maloney to Introduce Legislative Fix Next Year

Dec 17, 1999 Issues: Financial Services, Foreign Affairs

NEW YORK, NY -- Today, after reading a New York Times report that the White House is recommending that the independent Ex-Im Bank cancel a planned $500 million loan guarantee for a Russian oil company, Congresswoman Carolyn Maloney (D-NY), who has been closely following these guarantees for several months, praised the decision and announced her intention to introduce Ex-Im reform legislation next year. The company in question, Tyumen Oil, is widely reported to have manipulated the bankruptcy of a rival Russian oil company connected to numerous U.S. investors.

"The White House is correct to recommend that the Ex-Im Bank not support a company that is widely reported to have ripped off foreign investors by manipulating the bankruptcy of a rival," said Maloney. "The fact that this transaction has come so close to being approved demonstrates the need for legislation that broadens the criteria that Ex-Im reviews in making guarantees. The Bank should not be in the business of offering the full faith and credit of the United States to companies that practice crony-capitalism. I am a strong supporter of the core mission of Ex-Im and I look forward to developing a legislative approach to address these shortcoming next year."

"As we have seen in Southeast Asia and around the world, the fair and impartial enforcement of bankruptcy law is a primary requirement in attracting foreign investment. The Export-Import Bank does the Russian people no favor by endorsing lawless practices that will discourage investors in the long run."

Congresswoman Maloney has been closely monitoring the Tyumen Oil loan guarantees since sending a letter to Ex-Im requesting information on the transaction November 2, 1999. Since that date, Congresswoman Maloney has sent letters to the House Banking Committee, Ex-Im itself (with 13 colleagues), and the GAO asking that the guarantees be delayed and further scrutinized.

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