HLS 14RS-5739 ORIGINAL
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Regular Session, 2014
HOUSE CONCURRENT RESOLUTI ON NO. 209
BY REPRESENTATIVES EDWARDS, ARMES, COX, CROMER, AND GEYMANN
ECONOMIC DEVELOP/DEPT: Urges and requests the secretary of the Department of
Economic Development to reevaluate a cooperative endeavor agreement with a
Russian-based company
A CONCURRENT RESOLUTI ON1
To urge and request the secretary of the Louisiana Department of Economic Development2
to reevaluate the cooperative endeavor agreement with the Russian-based EuroChem.3
WHEREAS, on July 10, 2013, Governor Bobby Jindal and EuroChem chief4
executive officer Dmitry Strezhnev announced that EuroChem committed to build an5
ammonia and urea production plant in Louisiana to manufacture and distribute fertilizer6
products in the United States and other markets; and7
WHEREAS, to secure the project, the state offered this Russian-based company an8
incentive package that includes a six million dollar performance based grant to offset the9
costs of site infrastructure improvements; and10
WHEREAS, in addition, EuroChem is poised to receive the benefit of the11
Department of Economic Development's FastStart workforce training programs and is12
expected to utilize Louisiana's Quality Jobs and Industrial Tax Exemption programs, all of13
which are funded with tax dollars; and14
WHEREAS, since the announcement of the six million dollar incentive grant to a15
Russian-based company, relations between the United States and Russia have become tense16
due to events in Ukraine; and17
WHEREAS, the first three months of 2014 brought a sweeping chain of events to18
the world political stage: the Ukraine's parliament voted to oust President Viktor19
Yanukovych, Russian President Vladimir Putin sent troops into Crimea, located in southern20 HLS 14RS-5739 ORIGINAL
HCR NO. 209
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Ukraine, and a majority of Crimeans voted to secede from Ukraine and join Russia, an1
election that the United States does not recognize as legal; and2
WHEREAS, following these events, Russian President Putin signed a law which3
annexed Crimea as a part of Russia, an action that the United States views as an illegal land4
grab; and5
WHEREAS, in late March 2014, the United States targeted sanctions against persons6
close to Russian President Vladimir Putin over the Ukraine crisis and threatened broad7
penalties against key sectors of Russia's economy if the country moved deeper into the8
sovereign nation of Ukraine; and9
WHEREAS, in retaliation, Russia issued its own sanctions against a number of10
individuals in the executive and legislative branches of the United States government,11
including the chair of the United States Senate Committee on Energy and Natural Resources;12
and13
WHEREAS, the United States Department of the Treasury has cautioned Americans14
against conducting transactions with Russian firms that may be controlled by an individual15
who may have sanctions imposed upon him, even if that person does not own a majority16
stake; and17
WHEREAS, Gazprom, the giant energy company which is majority owned by the18
Russian state, threatened to reduce deliveries of natural gas to Ukraine, a move that if taken19
could threaten the delivery of natural gas to a number of our European allies; and20
WHEREAS, all this at a time when EuroChem, a company that receives funding21
from Russian state banks, will gain access to our state's much less expensive resources,22
including natural gas that runs through Louisiana pipelines; and23
WHEREAS, in the short amount of time between the announcement of the24
EuroChem project and today, the world stage has changed dramatically and what once25
appeared to be an informed, sound investment for the state may end up as a complete loss26
given current relations between the United States and Russia; and27
WHEREAS, even after EuroChem's purchase of two thousand one hundred and fifty28
acres of land from the state, it was announced that the company has not yet selected a final29
location for the proposed plant; and30 HLS 14RS-5739 ORIGINAL
HCR NO. 209
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WHEREAS, at a time when Russia and the United States are at odds over Russia's1
position in the Ukraine, the EuroChem project may not result in a positive return on state tax2
dollars, and may in fact result in a complete loss at a time when our state needs far3
outnumber our state dollars; and4
WHEREAS, it would be prudent to reevaluate the EuroChem project given the5
company's home base is in Russia and the uncertainties surrounding the project.6
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby7
urge and request that the secretary of the Department of Economic Development reevaluate8
and explore rescinding the cooperative endeavor agreement with the Russian-based company9
EuroChem.10
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the11
secretary of the Department of Economic Development.12
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Edwards HCR No. 209
Urges and requests the secretary of the Louisiana Department of Economic Development to
reevaluate the cooperative endeavor agreement with the Russian-based EuroChem.