§ Lord Kennet
asked Her Majesty's Government:
Whether the Prime Minister is correctly reported in the Russian press as having agreed, in his talks with Mr. Yeltsin, to "insure several projects in Russia from political risk"; what risks are envisaged; and what are these projects.
§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Baroness Denton of Wakefield)
The Prime Minister announced during 3WA President Yeltsin's recent visit to London that initial arrangements for the allocation of export credit guarantees for Russia have been agreed.
The projects which have been identified as priority candidates for Export Credits Guarantee Department (ECGD) support, subject to agreement between the parties concerned and further clarification of the details, were:
- a polyethylene complex to be supplied by John Brown Engineers and Constructors Ltd. at Novy Urengoy in Siberia;
- the construction of a new terminal building at Moscow's Domodedovo Airport by Taylor Woodrow International Ltd;
- and extension of a telephone network in Moscow by the Comstar joint venture company established between GEC Plessey Telecommunications Ltd. and the Moscow local telephone company.
Assuming satisfactory conclusion of the contract terms, it is envisaged that ECGD would guarantee UK banks providing loans to assist in the financing of relevant projects against the risks of non-payment by Russia for whatever reason.