Council Regulation (EC) No 2802/98 of 17 December 1998 on a programme to supply agricultural products to the Russian Federation
Date: 1998-12-17
Institutions: Council of the European Union
Subjects: Russia, agricultural product, award of contract, food aid, intervention stock, supply

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Official Journal of the European Communities

24. 12. 98

COUNCIL REGULATION (EC) No 2802/98

of 17 December 1998

on a programme to supply agricultural products to the Russian Federation

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 43 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parlia-
ment (1),

Whereas the Community has agricultural products in
stock as a result of intervention measures;

Whereas the Commission should be authorised to nego-
tiate and conclude this agreement; whereas
to help
achieve the ends of the operation the Commission should
be authorised to take all necessary action,
including
deferral or suspension of supply according to the diffi-
culties encountered, if the requirements set are no longer
being met;

Whereas the Commission is calling on outside technical
assistance for monitoring, auditing, control and evaluation
of the proper conduct of the operation, including on the
territory of the Russian Federation; whereas, for reasons of
urgency, the Commission may use restricted procedures
or private contracts,
in particular for monitoring and
control;

Whereas there are already considerable gaps in the supply
of certain agricultural products to the Russian market,
which are likely to become worse in the coming months;

Whereas, despite all the precautions which have been and
will be taken, the operation inevitably involves inherent
risks;

Whereas the international community is already mo-
bilised to deal with this situation and the Community
must also assume its responsibilities;

Whereas rules applying to the execution of the operation
should be adopted by the Commission through the
procedures
in force for common agricultural policy
purposes;

Whereas agricultural products should therefore be made
available to the Russian Federation (hereinafter ‘Russia')
in order to improve its food supply position,
taking
account of the diversity of local situations and without
compromising the trend to a free market in food; whereas
moreover as an exceptional measure intervention prod-
ucts should be sent in the first place to Russia either as
they are or after processing; whereas it should finally also
be possible to mobilise agricultural products on the
Community market where no intervention stocks are
available;

Whereas in view of the need it is imperative that products
reach their destination as soon as possible; whereas supply
should begin immediately and its cost should be met by
the European Agricultural
the Guarantee Section of
Guidance and Guarantee Fund,

HAS ADOPTED THIS REGULATION:

Whereas this operation will help to improve the precar-
ious situation of the Russian population and at the same
time help to regularise the agricultural markets;

Article 1

the actual organisation of

Whereas requirements to ensure that the operation is
properly carried out should be laid down and provision
made for the supply to be staggered; whereas particulars
of
including
product destination, are to be set out in a memorandum
to be concluded between the Community and Russia;
whereas under the memorandum the Russian authorities
are to be responsible for selling the products on local
markets at prices that do not disturb them and for using
the net receipts for social measures;

the operation,

1. Under the terms of this Regulation free supply shall
be made to Russia of agricultural products as referred to
in Article 3 that are either available following intervention
or if not so available will be mobilised on the Community
market.

2.
The products shall be supplied to the neediest
regions as identified by joint agreement between the
Community and Russia.

(1) Opinion delivered on 16 December 1998 (not yet published

in the Official Journal).

Supply shall be staggered as determined in consulta-

3.
tion with the Russian authorities.

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The terms of the operation shall be the subject of a
4.
memorandum between the Community and Russia nego-
tiated and concluded by the Commission. They shall
include, on the responsibility of the Russian authorities,
sale of the products supplied on local markets at prices
whereby the regional market will not be disturbed and
also the principle of exclusive allocation of
the net
receipts of sales to social measures. Exceptionally the
products supplied may be distributed free to the neediest
people of the regions concerned.

— milled rice:

50 000 tonnes,

— pigmeat:

100 000 tonnes carcase equivalent,

— beef:

150 000 tonnes carcase equivalent,

— skimmed milk powder:

50 000 tonnes.

also cover

The memorandum shall
and
cooperation by the Russian authorities in any monitoring,
auditing, control and evaluation activities to be carried out
within Russian territory, in particular by the Court of
Auditors or by outside bodies delegated by the Commis-
sion for the purpose.

assistance

Article 2

The products shall be supplied unprocessed or after

1.
processing in the Community.

2.
The measures may also relate to foodstuffs available
or which may be obtained on the market by payment
with products coming from intervention stocks and
belonging to the same group of products.

Supply costs, including transport to ports or frontier
3.
points, unloading excluded,
and where appropriate,
processing in the Community, shall be determined by
public tendering procedure or, for reasons of urgency or
routing difficulty, by restricted tendering procedure.

Export refunds on agricultural products shall not be

4.
granted on products supplied under this Regulation.

Article 3

The maximum quantities for free supply shall be:

— common wheat of breadmaking quality:

1 000 000 tonnes,

— rye of breadmaking quality:

500 000 tonnes,

Article 4

The Commission shall be responsible for execution

1.
of the operation under the terms of this Regulation.

The Commission shall defer execution of one or more
instalments of the operation or suspend it if it is not
ensured that the operation is being carried out satisfac-
torily, in particular if the provisions of the memorandum
referred to in Article 1(4) are not being respected.

It shall take all necessary action to ensure that supply is
effected at the stage planned.

The Commission shall, by means of open or restricted
invitations to tender or private contracts, as provided for
in the Financial Regulation, call on outside technical
assistance for monitoring, auditing, control and evaluation
of the proper conduct of the operation,
including on
Russian territory.

2. Detailed rules for the application of this Regulation
shall be adopted in accordance with the procedure laid
down in Article 23 of Regulation (EEC) No 1766/92 (1) or,
as appropriate, the corresponding Articles of the other
Regulations on the common organisation of markets.

Article 5

The book value of agricultural products from intervention
shall be determined in accordance with the procedure laid
down in Article 13 of Regulation (EEC) No 729/70 (2).

Article 6

Action under this Regulation shall be covered by Article 3
of Regulation (EEC) No 729/70,
including the costs
arising from the application of the last subparagraph of
Article 4(1) of this Regulation.

Article 7

into force on the day
This Regulation shall enter
following its publication in the Official Journal of the
European Communities.

(1) OJ L 181, 1. 7. 1992, p. 21. Regulation as last amended by
Commission Regulation (EC) No 923/96 (OJ L 126, 24. 5.
1996, p. 37).

(2) OJ L 94, 28. 4. 1970, p. 13. Regulation as last amended by
Regulation (EC) No 1287/95 (OJ L 125, 8. 6. 1995, p. 1).

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This Regulation shall be binding in its entirety and directly applicable in all Member
States.

Done at Brussels, 17 December 1998.

For the Council

The President

W. MOLTERER