HL Deb 28 April 1993 vol 545 cc13-4WA
Lord Kennet

asked Her Majesty's Government:

Who is to receive the monies being offered to Russia by the United Kingdom: the central Bank, President Yeltsin, the Government, or any other organisations (and if so, which); and

Whether the monies being offered to Russia are a contribution to President Yeltsin's political campaign in the run-up to the referendum, for the promotion of democracy in Russia, or for the alleviation of poverty consequent on the attempts to introduce "market forces" into the Russian economy; and

Whether steps are being taken to ensure that none of the monies advanced to Russia are re-exported into Swiss and other banks.

Baroness Chalker of Wallasey

Our bilateral assistance to Russia is in the form of export credits and investment insurance, and grant aid—the majority in the form of technical assistance.

Export credits will be used to assist in the financing of specific contracts for the export of UK capital goods and projects. Investment insurance cover will protect UK companies making equity investments in Russia.

Our technical assistance, mainly administered through the Know How Fund, is designed to support reform at all levels, including the grass roots. It is not administered on a government to government basis, but is applied directly to individual projects for maximum effectiveness.