WRITTEN QUESTION E-4158/97 by Leonie van Bladel (UPE) to the Council (22 January 1998)

Subject: Failure of a TACIS project in Russia

1. The Netherlands and its consultants Koninklijke Ahold NV were taken to court on 4 December 1997 by the Russian partner Tonar for payment of Fl. 9 million damages for the unlawful termination of a TACIS aid programme (TAGOS) initiated by the EU. According to the ruling of the Amsterdam Court the termination of the aid programme was unlawful. Both the Netherlands state and Koninklijke Ahold N.V. refuse to settle the damages in a correct manner and are forcing the Russian partner into a costly, unnecessary and lengthy procedure. Is the Council aware that the case, which is expected to last several years - whether or not there is a positive or negative result for the plaintiffs, - will have an adverse effect on future aid programmes and the mutual trust and stability in relations with Eastern Europe. Does the Council not consider that there is gross negligence on the part of Koninklijke Ahold N.V., when, despite the clear indication by the Amsterdam court that Koninklijke Ahold N.V. is liable for damages, that company and the Netherlands state refuse to hold any proper discussions with the injured party, in this case the Russian partner Tonar?

2. The study commissioned by the EU and carried out by Koninklijke Ahold N.V., shows that the establishment of a food wholesaler business, in this case a distribution centre, is the key priority. Koninklijke Ahold made this conclusion a priority in its August 1992 report. Does the Council not find it strange that the country providing assistance. In the framework of the TACIS aid programme, in this case the Netherlands, refuses to meet the key wishes of the country receiving assistance, in this case Russia, and also that the agreements made between the Netherlands and Russia have consistently not been fulfilled, even after it was shown that the Russians had fully satisfied all conditions set by the European Union and the Netherlands Ministry for Economic Affairs?

Joint answer to Written Questions E-3886/97, E-4158/97 and E-0298/98 (7 April 1998)

The TACIS programme provides technical assistance for economic reforms in Russia and, through the transfer of 'know-how', measures which will, inter alia, ensure the transition to a market economy.

With the collapse of the USSR, the provision of food supplies to Russia's cities posed major problems, warranting a large-scale Community food aid operation. Structural requirements linked to transition to a market economy in this area led the Community to make the production, processing and distribution of foodstuffs one of the priorities for TACIS Programme intervention.

In this context, the TACIS Programme funded a preliminary study for a centre for the wholesale distribution of foodstuffs in Moscow. That study was followed up by intervention funded through bilateral technical assistance from the Netherlands Government.

In this connection, the Council would make the general point that the Commission is responsible, under successive Regulations Nos 2157/91, 2053/93 and 1279/96, for managing the TACIS Programme and it is therefore for the Commission to provide information on the implementation of the operations it finances. With more specific reference to the project financed by the Netherlands State from its own funds, the Council does not feel it should comment when a Russian company has brought the case before the courts of the Member State concerned.