06 November 1998
TEXT: U.S., RUSSIA AGREE ON FOOD AID PACKAGE
(Deal would give Russia 3.1 million metric tons of food aid) (740) Washington -- U.S. Agriculture Secretary Dan Glickman says the details of a $625 million food assistance package have been worked out that will provide at least 3.1 million metric tons of U.S. food to Russia. Glickman said November 6 that key issues involving distribution, monitoring, and accountability have been resolved by the U.S. delegation and the Russian government's representatives, according to a U.S. Department of Agriculture (USDA) news release. USDA estimates the commodity value of the food shipments at about $625 million. In addition, the U.S. Commodity Credit Corporation will pay an estimated $200 million in transportation costs, plus another $60 million in transportation costs under the Food for Peace Program, formally Title I of the Public Law (PL) 480. Glickman said the food assistance package includes a donation of 1.5 million metric tons of U.S. wheat. In addition, USDA says the package under Title I includes 500,000 metric tons of maize (corn), 300,000 tons of soybean meal, 200,000 metric tons of soybeans, 200,000 metric tons of additional wheat, 100,000 metric tons of rice, 120,000 metric tons of beef, 50,000 metric tons of pork, and 30,000 metric tons of nonfat dry milk. "Another 100,000 metric tons of various commodities will be donated to private voluntary organizations in Russia under the Food for Peace program," Glickman said. The Russian government said the food assistance will be exempt from taxes and customs duties, according to USDA. Following is the text of Glickman's announcement: (begin text) Statement by Agriculture Secretary Dan Glickman on Food Aid for Russia November 6, 1998 "I am pleased to announce that an understanding has been reached with the Russian government on the key elements of a food assistance package totaling at least 3.1 million tons of U.S. commodities. Key issues involving distribution, monitoring, and accountability were successfully resolved today in Moscow. The Russian government confirmed that this food will be exempt from taxes and customs duties. "This understanding is good news for the Russian people who might otherwise face the possibility of food shortages this winter, and it is good news for America's farmers and ranchers, who are facing economic hardships related to large supplies and low prices. I want to thank President Clinton and Vice President Gore for their strong leadership on this issue. I also want to congratulate the U.S. team, headed by USDA's General Sales Manager Christopher Goldthwait, for working so hard to reach this important understanding with their Russian counterparts. "The package includes a donation of 1.5 million metric tons of U.S. wheat under Section 416(b), as well as concessional sales under P.L.480, Title I. The Title I program includes the following commodities: 500,000 metric tons of corn, 300,000 tons of soybean meal, 200,000 tons of soybeans, 200,000 tons of wheat, 100,000 tons of rice, 120,000 tons of beef, 50,000 tons of pork, and 30,000 tons of nonfat dry milk. Another 100,000 tons of various commodities will be donated to private voluntary organizations in Russia under the Food for Progress program. "USDA estimates the commodity value of the shipments at around $625 million (U.S. FOB value). The Commodity Credit Corporation will also pay an estimated $200 million in transportation costs to assure these commodities benefit the people in Russia. In addition, the CCC will finance an estimated $60 million of transportation costs under the P.L.480, Title I, agreement. "USDA will now proceed to negotiate detailed P.L.480, Title I, and Section 416(b) agreements with the Russian government, as well as specific Food for Progress agreements with private voluntary organizations. The successful completion of negotiations on these agreements would allow initial shipments to begin in December, 1998. Discussions are continuing on some additional issues involving the exemption of other U.S. assistance from Russian taxes. "Meanwhile, we will continue to assess the Russian situation, and, as the President said yesterday, we are prepared to consider additional assistance, if necessary. At the same time, we are looking at various options for reviving U.S. poultry sales to Russia." (end text)
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