WRITTEN QUESTION E-1665/99 by Lucio Manisco (GUE/NGL) to the Commission. Misappropriation of IMF funds for Russia and the European Bank for Reconstruction and Development.
Date: 1999-09-22
Institutions: European Parliament, Provisional data
Subjects: EBRD, EU aid, International Monetary Fund, Russia, money laundering, use of aid

C 170 E/68

Official Journal of the European Communities

EN

20.6.2000

(2000/C 170 E/076)

WRITTEN QUESTION E-1662/99

by Laura GonzÆlez `lvarez (GUE/NGL)
and Alonso Puerta (GUE/NGL) to the Commission

(22 September 1999)

Subject: Threat of US sanctions against Sol-Meli(cid:224)

The US Department of State is considering the possiblity of imposing sanctions on the Spanish hotel group
Sol-Meli(cid:224) on account of its investments in Cuba. The USA is planning to apply Title IV of the Helms-
Burton Act, which the EU considers to be illegal because its scope extends beyond US territory. Such
sanctions, if imposed, would affect international free trade and would damage the business interests of one
of Spain(cid:146)s most representative tourism companies.

1.

How real is the threat that sanctions may be imposed on Sol-Meli(cid:224)?

If sanctions were to be imposed, what action could the Commission take in order to protect Sol-

2.
Meli(cid:224) interests?

3. Would the Commission be willing to take up the issue of the Helms-Burton Act with the World
Trade Organisation?

Answer given by Mr Lamy on behalf of the Commission

(13 October 1999)

The Commission recalls that the decisions and statements made at the Community and the United States
summit of 18 May 1998 regarding the Helms Burton and Iran/Libya Sanctions Acts were intended to pave
the way for a definitive solution to this major bilateral disagreement. The Commission remains very
concerned that no tangible progress has so far been made on the American side on their commitment to
seeking Congressional amendment to Title IV of Helms Burton, not least since the American administra-
tion has regularly recalled the President(cid:146)s continuing obligation, in the absence of such an amendment, to
enforce that Title.

The Commission has for its part always made it clear that if action is taken against Community companies
or individuals under the Helms-Burton Act, the question of a new World trade organisation (WTO) panel
will inevitably arise.

The Commission has urged the American administration to accelerate the implementation, on their side, of
the May 1998 summit deal.

The Commission is following the situation very closely and will continue to keep the Parliament informed
of any new developments regarding the implementation of the 18 May 1998 understandings.

(2000/C 170 E/077)

WRITTEN QUESTION E-1665/99

by Lucio Manisco (GUE/NGL) to the Commission

(22 September 1999)

Subject: Misappropriation of
Development

IMF funds for Russia and the European Bank for Reconstruction and

At the end of July the Chairman of the International Monetary Fund, Michel Camdessus, granted a loan of
US$ 4,5 billion to the Russian Federation, although he knew about a report by Price Waterhouse
confirming that Moscow(cid:146)s Central Bank had for some time been diverting part of the funding to financial
institutions abroad.

Does the Commission know whether EBRD funds as well as IMF funds have been misappropriated?

20.6.2000

EN

Official Journal of the European Communities

C 170 E/69

Answer given by Mr Solbes Mira on behalf of the Commission

(3 November 1999)

On the general issues of alleged financial corruption in Russia, the Commission(cid:146)s view remains as set out
in its statement in Parliament on 16 September 1999. On the particular question by the Honourable
Member,
in its capacity as the
representative of the Community in the board of directors of the European bank for reconstruction and
development (EBRD):

the Commission hereby transmits the information available to it

Illegal capital flight is a criminal activity and its perpetrators will therefore attempt to conceal their
activities from official view,
including that of the EBRD. Therefore the EBRD has an anti-money
laundering policy, and requires that financial institutions to whom it extends credit make representa-
tions, which are designed to reduce the likelihood of the Bank becoming unwittingly involved in such
activities. In addition, all EBRD payments to and from Russia are covered by appropriate Central Bank
licences.

Approximately a quarter of all EBRD financing is with Russian counterparties. The EBRD(cid:146)s activities
with Russian counterparties are restricted to financing of approved projects where use of funds is
closely defined. Strict disbursement controls are in place at EBRD which mean that funds are paid
directly to contractors wherever this is possible. Where other disbursement mechanisms such as
Special Accounts are used, these accounts are reconciled regularly to ensure that funds are used for the
intended purpose.

Regular staff briefings are held by the anti money laundering officer, appointed by the Bank in 1996.

Following the recent Bank of New York case, the EBRD has conducted its own review of Russian
exposures and has asked its auditors to conduct a review of specific Russian projects which could be
vulnerable to money laundering activities. Although the external review is continuing, the Bank(cid:146)s
preliminary assessment from its own review is that there are no projects which exhibit prima facie
conduct or transactions that would indicate laundering.

The Commission has no evidence, which could put in doubt the above information.

(2000/C 170 E/078)

WRITTEN QUESTION E-1668/99

by Roberta Angelilli (NI) to the Commission

(22 September 1999)

Subject: Aid to young artists

The aid and funding earmarked for artistic activities in the Member States are to a great extent made
available exclusively to organisations and activities carried out jointly by several Member States.

A large proportion of artistic output, an enormous heritage of culture and development for Europe, is the
work of individuals, who carry out an undeniably useful role both culturally and socially. It should also be
borne in mind that individual operators in the various artistic fields represent an employment opportunity
which must not be underestimated. The work of individual artists, the expression of Western and European
thought, is an asset shared by all the citizens of the European Union.

In view of the above, can the Commission say:

1. whether there are programmes designed to fund the activities of individual artists considered to be of

particular merit;

2. whether relevant provisions are currently being considered;