U.S. Treasury Secretary Paul O'Neill said Wednesday it was important that Russia put newly passed economic reforms into practice to reassure companies eager to invest there.

He said the Russian government was well aware that American and European businesses were looking at investment opportunities but had some reservations.

"I believe we haven't seen more [investment in Russia] because of the absence of the rule of law and enforceable contracts and having to pay people off in order to do business," he said.