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Europe Daily Bulletin No. 7896
Contents Publication in full By article 28 / 50
GENERAL NEWS / (eu) eu/russia

Court of Auditors criticises way in which Commission prepared and managed, in 1999, EU food aid to Russia

Brussels, 05/02/2001 (Agence Europe) - The EU Court of Auditors criticised the way in which the European Commission prepared and managed, in 1999, the European Union food aid to the Russian population, which had to face a bad harvest and serious social consequences of the financial crisis that had hit Russia in 1998. The main aim of the aid, namely to improve the precarious situation of the Russian people and to regularise the agricultural markets through the delivery of agricultural products (notably cereals and meat) to the poorest regions, "was only partially achieved", asserts the Court in its report, which is published in the Official Journal C25. In fact, the poorest section of the population hardly benefited from the EU food aid (which was sold by the Russian authorities on the local markets, to collect funds that were then used to finance social projects), as they simply did not have the financial means to buy from the market. On the other hand, the funds gathered through the sales contributed towards improving the situation of pensioners and health care. However, in a general manner, according to the Court, the necessity of the provisions of cereals and meat to Russia were "questionable", as during the same year (1999), Russia was even able to export cereals. "A prior analysis of the needs was carried out. The need for such an aid was not proven", reads the report. The food problem, continues the Court, was all the more attributable to the lack of financial resources of the Russian population than to failing supply. For these reasons, the supply of cereals and meat, which were especially complicated and onerous, without guarantee as to their final recipient, "seem particularly hard to justify." The Commission also committed the mistake of appreciation as, at the time when it proposed the food aid to the EU Council, it over estimated to duration of the financial crisis in Russia, asserts the Court. With regards to the execution of the aid, the time frames for the implementation of the measures where "largely exceeded" and the Commission was unable to ensure a sufficient and appropriate follow-up.

In its answer (annex to the report by the Court of Auditors in the Official Journal cited above), the European Commission explains the delays in the implementation of the aid by the complexity of the situation and the difficulties faced during the allocation of markets, through the inability of the Russian authorities to ensure a rapid certification of the products mobilised, as well as due to considerable logistical problems. Nevertheless the Commission underlines that despite the delays recorded 97% of the amount foreseen under the programme was delivered within nine months. The Commission concludes that the aim of the programme was achieved: to guarantee the availability of foodstuffs and ensure that the price is affordable. The programme only had a few negative effects on the local Russian markets, underlines the Commission, "and its positive effects were felt throughout the Russian Federation."

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