990364 “Key Hurdle” Erased From Russia Food Aid Pact

Washington - The U.S. Agriculture Department said it has clarified the transportation language in its PL-480 food aid pact with Russia, clearing an obstacle that stood in the way of the massive aid package.

USDA said the amendment to the agreement clarifies each party's responsibility for transportation costs and the use of non-Russian ports for the PL-480 package, “removing a key hurdle to the start of shipments under these agreements.”

“The amended transportation language is now more specific about the actual costs of shipping to the Russian border, reflecting discussions between shipping agents of the Russian government and USDA transportation specialists,” the department said in a news release.

The United States and Russia agreed to a nearly $1 billion food aid package late last year to help the Russian people through the winter after a poor harvest and the devaluation of the rouble stirred worries that the country faced a serious food shortage.

The aid package was also greeted warmly by U.S. farmers, who have experienced sinking prices for most crops due to huge supplies worldwide as well as decreased export demand from struggling Asian countries.

Under the pact, the U.S. will donate 1.5 million tonnes of U.S. wheat and will provide low-interest, long-term loans for the sale of 500,000 tonnes of U.S. corn, 300,000 tonnes of soybean meal, 200,000 tonnes of soybeans, 200,000 tonnes of wheat and 100,000 tonnes of rice.

The U.S. will also provide loans for 120,000 tonnes of beef, 50,000 tonnes of pork, 50,000 tonnes of poultry and 30,000 tonnes of nonfat dry milk. Another 100,000 tonnes of food will be donated to private voluntary organizations in Russia.

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