COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(91) 140 final 
Brussels, 19 April 1991 
Proposal for a 
COUNCIL REGULATION (EECÏ 
amending Regulation (EEC) No 599/91 introducing a credit guarantee 
for exports of agricultural products and foodstuffs from the Community 
to the Soviet Union 
(presented by the Commission) 
Explanatory Memorandum 
Subject : Amendment to Council Regulation H' 599/91 of Search 1991 
(OJ 1991, L 67). 
Under Article 2 of Regulation 599/91, introducing a credit guarantee for 
exports of agricultural products and foodstuffs from the Community to the 
Soviet Union, the Commission is charged, in consultation with a committee 
composed of Member State representatives, with negotiating an agreement 
between the Community and the Soviet Union. Article 2 provides also that the 
agreement shall contain, inter alia, the provision governing the loans that 
will be granted to the Soviet Union. 
During the discussion that have taken place with the Soviet delegation on the 
terms of the agreement, the Soviet side indicated that the repayment schedule 
of the loan envisaged in Article 3 of the Regulation, is not acceptable to 
them in view of repayment obligations on their side from previous credit 
guarantee contracts. It was clearly stated by the delegation that they were 
unable to start the reimbursement of the Community loan before 1993. Instead 
of the 6 equal six-monthly instalments as from expiry of the drawing period 
provided for by Art. 3 of the Regulation, the Soviet side therefore proposed 
to repay the loans by means of 3 equal payments, respectively 20, 31 and 42 
months after the date of signature of the agreement. 
The Commission believes that it is in the interest of all parties concerned 
to modify the terms of repayment. Therefore, the Commission proposes the 
modification of Article 3 of the Regulation as presented in the attached 
proposal. Adoption of this proposal, after consultation of the European 
Parliament, at the earliest convenience, is required without delay to 
conclude the agreement with the Soviet Union before the end of May. 
i 
This proposal has no impact on the budget of the Community. 
h 
Proposal for a 
COUNCIL REGULATION (EEC) No / 
of 
amending Regulation (EEC) No 599/91 introducing a credit guarantee 
for exports of agricultural products and foodstuffs from the Community 
to the Soviet Union 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, and in 
particular Articles 113 and 235-thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Par I lament, 
Whereas Council Regulation (EEC) No 599/91 of 5 March 1991(1> introduces a 
credit guarantee for the Soviet Union to import agricultural products and 
foodstuffs from the Community; whereas, at the request of the recipient country, 
the conditions for the reimbursement of the loans originally provided for should 
be altered in order to take account of commitments entered into previously, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Article 3 of Regulation (EEC) No 599/91 is hereby replaced by the following: 
"Article 3 
The credit for which repayments are covered by the guarantee may not exceed ECU 
500 million. Reimbursement shall involve three instalments of an equal 
amount, paid 20, 31 and 42 months from the signing of the agreement provided for 
in Art icle 2. 
The credit shall be backed by a payment and transfer guarantee of a body 
empowered to cover sovereign risk and to authorize foreign currency transfers. 
(1) 0J No L 67, 14.3.1991, p. 21. 
- 2 -
The period for drawing upon the credit shall be limited to six months as from the 
date of signing of the agreement provided for above. This loan may be drawn upon 
in tranches. Payment of these tranches shall depend upon the degree to which the 
Soviet Union complies with the provisions of the agreement referred to above and 
with the conditions laid down for granting the guarantee." 
Article 2 
This Regulation shall enter into force on the day following its publication in 
the Official Journal of the European Communities. 
This Regulation shall be blndi-ng in its entirety and directly applicable in all 
Member States. 
Done at Brussels, For the Council 
H 
ISSN 0254-1475 
COM(91) 140 final 
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