§ 38. Mr. David ShawTo ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the assistance being given by the United Kingdom to the former Soviet republics.
§ Mr. Douglas HoggThe purpose of British assistance to the states of the former Soviet Union and the Baltics is to support economic and political reform. We have pledged bilateral aid totalling over £131 million, including £100 million for the know-how fund. So far, we have spent £35.7 million, and a further £11 million is already committed to specific activities. Our assistance is directed to priority sectors, mainly small business development, financial services, energy and food production and distribution. There is £280 million in medium-term export credit cover for the region, for which only Russia at present qualifies. We also contribute about 18 per cent. of European Community grant aid to the region, totalling 1,305 mecu in 1991 and 1992. The European Community has also made available 1.75 billion ecu in loans and credits. We provide further support through the World bank, the European bank for reconstruction and development and the Asian development bank.