(REUTERS) U.S. Congress mulling food assistance for Russia
U.S. Congress mulling food assistance for Russia
WASHINGTON, Oct 13 (Reuters) - U.S. lawmakers are mulling
whether to include food purchase credits or outright donations
for Russia as part of a fiscal 1999 spending package that it
hopes to finalize in the next couple of days.
Senator Thad Cochran, a Mississippi Republican and chairman
of the Senate Appropriations subcommittee on agriculture, told
Reuters he favors extending credits for food purchases.
"I think this is in our national interest," Cochran told
Reuters. "It'll help stabilize their economy and also provide a
market opportunity for U.S. food producers."
Russia has been the No. 1 market for U.S. poultry exports
in recent years. But sales have plummeted since August, when
Russia's economy went into a tailspin.
Also, as much as 100,000 tonnes of U.S. poultry may now be
stranded at Russian ports because of payment problems stemming
from the rouble devaluation, an U.S. industry aide said.
USDA food credits would allow Russia to finance new
purchases of poultry and other commodities, Cochran said.
But Rep. Marcy Kaptur, an Ohio Democrat who is a senior
member of the House Appropriations Committee, called the
proposal an "extremely troublesome" bailout for poultry traders
and vowed to fight it "to the bitter end."
Kaptur put the size of the proposed credits at $435
million, but other figures have also been floating around.
One House aide said the final figure could be
"substantially lower" than $400 million. And instead of
credits, Congress could instruct USDA to provide donations
under the Food for Progress program, he said.
Russia is currently barred from participating in USDA
credit guarantee program because it has missed two payments
recently under that program.
Given that track record, some lawmakers question the wisdom
of providing direct loans that are unlikely to be paid back,
the aide said.
U.S. poultry producers say they oppose outright donations
because of the negative impact that could have on Russian
importers and distributors involved in commercial sales.
However, if Congress decides on donations, it could
recommend that USDA provide poultry, other meat and vegetable
oil, the House aide said.
((Doug Palmer, Washington newsroom + 1 202 898 8341 fax + 1
202 898 8383, washington.commodsenergy.newsroom@reuters.com))
REUTERS
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