WRITTEN QUESTION E-1626/99 by Esko Seppänen (GUE/NGL) to the Commission. Food aid for Russia.
Date: 1999-09-15
Institutions: European Parliament, Provisional data
Subjects: EU programme, Russia, food aid

24.10.2000

EN

Official Journal of the European Communities

C 303 E/3

(2000/C 303 E/003)

WRITTEN QUESTION E-1626/99

by Esko Sepp(cid:228)nen (GUE/NGL) to the Commission

(15 September 1999)

Subject: Food aid for Russia

The EU decided to send special food aid to Russia in the winter of 1998 to 1999 on account of the
difficult food situation there. Has the aid already been delivered, and its distribution organised in such a
way as to prevent food products being sold back to the Western market?

Joint answer
to Written Questions E-1470/99 and E-1626/99
given by Mr Patten on behalf of the Commission

(17 November 1999)

On the general issue of alleged financial corruption in Russia, the Commission(cid:146)s views remain as set out in
the statement made in the Parliament on 16 September 1999. The discussions in the G7 on this issue by
the end of September were consistent with the Commission(cid:146)s views.

1,7 million tonnes of food products have been delivered or are in course of delivery to the Russian

1.
Federation as follows:

Wheat

Rye

Beef

Rice

Pork

Powdered milk

Delivered

In course of delivery

794

380

99,1

30

22

0

180

80

37

19,7

36,5

45

(Thousand tonnes)

Total

974

460

136,1

49,7

58,5

45

2.
In accordance with the memorandum of understanding (MoU) between the Commission and the
Russian Federation, the beneficiary regions have 75 days from arrival at the destination or 120 days after
arrival at the port whichever is the earlier in which to lodge money on the special account for products
delivered and sold at prices agreed under the price protocol. A protocol was concluded in May 1999 and
revised in September 1999 to take account of commodity price movements throughout the Russian
Federation. According to the latest available figures a total of 1 195 million roubles have been deposited
on the special account. This reflects the value of products sold except for the arrears mentioned under
point 4. The prices at which commodities are sold are as follows:

Product

September price

(May price)

(Roubles per tonne)

Wheat

Rye

Rice

Pork

Beef (carcase)

Beef (boxed)

Powdered milk

1 600

1 000

8 000

25 000

22 000

35 000
29 000
16 000

20 000

(1 429)

(790)

(6 500)

(25 000)

(22 000)

(35 000)
(29 000)
(16 000)

(22 000)

The differentiated prices for boxed beef represent the cut specification.

C 303 E/4

Official Journal of the European Communities

EN

24.10.2000

According to the MoU, the bulk of the proceeds (up to 80 %) is used to clear pension fund arrears.
3.
This has already taken place for an amount of 961 million roubles. From the total amount deposited up to
now on the special account, 290 million roubles is available for the funding of social projects. A number
of recent submissions by the Russian ministry for labour and social policy are now in the process of being
assessed.

4.
According to the reports received by the Commission, there is no substance to the allegations in the
Dutch media. Product sales prices have been negotiated to ensure that the market cannot be manipulated.
Although there is provision for free distribution of the food products, in certain circumstances, this facility
has not yet been used. All products have to be sold at the agreed price and funds deposited on the special
account. According to the latest available figures, arrears to the special account were approximately 18 %
of the total so far lodged, and under the terms of the agreement, the Russian administration is obliged to
guarantee payment from federal funding for those regions which fail to meet their commitment.

5. Monitoring of the programme in Russia is being carried out by Euro Monitoring Group, contracted
by the Commission under competitive tender. This company has ten strategically-located regional bases,
which report their findings daily to the Euro Monitoring Group headquarters in Moscow. All survey
reports are analysed by a team of experts and all information is posted to a website accessed only by
authorised users. A team of 400 surveyors performs quantitative and visual quality controls on arrival at
the Russian border, seal the product before dispatch to its final destination, check the seals on arrival at
destination and undertake further quantity surveys. Any anomalies are noted and reported to Moscow for
appropriate action. The Commission considers this control mechanism to be sufficient guarantee thatthe
product reaches the beneficiary regions. After delivery to the first receiver the cost of further monitoring
would be prohibitive.

A comprehensive progress report (1), covering programme implementation to 31 May 1999 was
6.
submitted to the Council, Parliament and Court of auditors on 5 July 1999. A monthly report
for September 1999 (2) has been prepared and submitted to the Council, Parliament and Court of auditors
on 15 October 1999. A further comprehensive report is in preparation for diffusion end of October.

(1) SEC(1999) 1070.
(2) SEC(1999) 1651.

(2000/C 303 E/004)

WRITTEN QUESTION E-1562/99

by Lucio Manisco (GUE/NGL) to the Commission

(1 September 1999)

Subject: Project evaluation for the Fifth Framework Programme for RTD

The Commission awarded Wang the contract for managing the evaluation of proposals for the RTD
Framework Programme. However, as the Commission was late in signing the contract, its own staff had to
carry out the work and, in so doing, were obliged to perform tasks that did not fall within their job
description, such as assembling tables, moving chairs from one building to another and buying tables and
chairs from IKEA because not enough were available.

1.

How much did this contract cost?

Is it true that the contractor is using Commission premises free of charge and how much is it costing

2.
the Commission to rent these premises?

3. Why was the Commission late in signing the contract with Wang, thereby obliging its directorates to
conduct the evaluations in such inappropriate circumstances?