It's very hard to change the Cold War mentality. While the booming Russian economy spells opportunity for large Western companies as well as for small- and medium-sized enterprises (SMEs) looking to expand into foreign markets, U.S. companies looking to leverage the investment opportunities are running head-on into an intransigent U.S. policy. Indeed, Congress is balking at taking off the books the 1974 amendment that tied immigration to trade with Russia.

Russia's gross domestic product in- creased 6 percent in 2006, with similar growth predicted for 2007. Russia's massive energy reserves and high energy prices have resulted in huge profits and an enviable budget reserve of $315 billion in 2006. Consumer spending is up, and Russians are buying foreign cars, apartments and modern household goods, as well as taking foreign holidays in record numbers.

Last year, the percentage growth of foreign direct investment in Russia eclipsed that of the other so-called Bric (Brazil, Russia, India and China) nations, most notably China. Russian companies are investing in Africa, Asia and Europe, and they are increasingly looking to the U.S. market.

An outdated perspective seems to be at the heart of the political tennis match over Russia's status in the World Trade Organization. Michael McFaul, Peter and Helen Bing senior fellow at the Hoover Institution and a professor of political science at Stanford University, wrote in the Hoover Institution's Political Review: "It is time for Congress to graduate Russia from [its status under the 1974] Jackson-Vanik [amendment] and thereby allow Russia to obtain permanent normal trading status with the United States, even before Russia joins the World Trade Organization."

That was written two years ago.

The signing of the U.S.-Russia Bilateral Market Access Agreement last November was supposed to reduce tensions between the two countries on key market access issues. What's more, Russian president Vladimir Putin has prioritized diversification of the economy to attract more SMEs in industry sectors other than natural resources. He has also announced plans for creating tax-free zones for specific industry sectors, includ- ing information technology. In February, Russian prime minister Michael Fradkov an- nounced that 304 investment projects, valued at $400.5 billion, would be implemented before 2015.

What are we waiting for?

On June 4-6, those ready to test the waters will come to Moscow for Semi Expo CIS, comprising the Semiconductor Executive Market Conference, Photovoltaic Conference, and Labor Force for Semiconductor and Software Sectors in Russia Conference.