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Japan's Assistance for the Russian Federation

April, 2000
European and Oceanic Affairs Bureau
Ministry of Foreign Affairs

Japan's committed assistance to the Russian Federation totaling US$6.3 billion
Breakdown

Loans and Trade Insurance: US$5.6 billion in total
US$1.2 billion in Japan Bank for International Cooperation (JBIC) loans, US$2.9 billion in trade insurance, and US$1.5 billion in JBIC untied loans

Type of Assistance		Date of Announcement	State of Implementation
Loans and Trade Insurance	US$100 million in JBIC loans for humanitarian assistance	Dec.1990	E/N signed in September 1992 and the loan contract took effect in March 1993. However, after the Government of the Russian Federation's decision to reduce import subsidies in July 1993, Russian importers found it difficult to raise capital and this program ended, having only providing about US$19 million in loans.
	US$2.5 billion assistance package (1)US$500 million in JBIC loans for humanitarian assistance	Oct.1991	(1)As a result of coordination with theRussian side, it was decided to transfer the funds to investment projects on the condition that the US$400 million loan framework be fully spent. In further coordination thereafter, allocation of the funds on a regional basis was agreed to. At the November' 96 Foreign Ministers' Meeting, it was decided that JEXIM could evaluate the suitability of loans if there was an official request from the Russian side about a specific project. At this point, loan agreements have been signed for four projects - (1)the Izhmash auto plant project, (2)the Khabarovsk baby food plant construction project, (3)the Irkutsk hospital project, and (4)the Barvikha Presidential Medical Center project.
	(2)US$200 million in JBIC export credits for facilitation of trade and economic activities		(2)A loan contract was signed in July 1994 for the Trans Siberian Communication Network project.
	(3)US$1.8 billion in trade insurance for facilitation of trade and economic activities		(3)Trade insurance worth US$700 million was accepted for natural gas related projects. Also, around US$400 million was accepted for refinancing, investment insurance, and short-term trade insurance. In August 1995, US$700 million was accepted for the Lukh Oil Project (however, the trade insurance acceptance contract was never exercised.)
	US$1.5 billion (1)US$1.1 billion: Trade insurance	Apr. 1993	(1)This item has not been implemented
	(2)US$400 million: JBIC export credits	Apr. 1993	(2)Loan contracts were signed in 1995 for three projects - Impulse microwaves, modernization of the Yaroslavl' oil refining facilities, and the Kama truck factory renovation.
	US$1.5 billion: JBIC untied loans	Feb. 1998	During a visit by then-Foreign Minister Obuchi in February 1998, Japan expressed intention to provide this amount through the appropriate utilization of fiscal investment loans as part of a cooperative loan program with the World Bank for the purpose of assisting structural reforms in the Russian economy. Loan agreement worth US$800 million was signed in July and loan agreement worth US$700 million was signed in November 1999. 1.025billion US$ has been disbursed.

Grant Aid: Around US$700 million for emergency humanitarian assistance, technical assistance and other activities implemented by the Cooperation Committee established for the purpose of carrying out Japan's assistance to the NIS countries, and for cooperation in the area of dismantlement of nuclear weapons

		Type of Assistance	Date of Announcement	State of Implementation
Grant Aid	Humanitarian Assistance	1.0 billion yen in humanitarian assistance	Dec. 1990	Provision of food supplies, medical supplies and medical equipment through the International Red Cross. (For the former Soviet Union.)
		2.6 billion yen in Chernobyl disaster relief	Nov. 1990	Donated to the WHO. (For the former Soviet Union.)
		6.5 billion yen in humanitarian assistance	Jan. 1992	Provision of food supplies, medical supplies and medical equipment through the International Red Cross.
		US$100 million in humanitarian assistance	Oct. 1992	Food supply monetization and provision of medical supplies/equipment. (For the NIS.)
		US$100 million in humanitarian assistance	Apr. 1993	Food supply monetization and provision of medical supplies/equipment. (For the NIS.)
		US$10 million in humanitarian cooperation in the field of medicine	Nov. 1998	Emergency provision of medical supplies and medical equipment. Being implemented. (For the Russian Federation.)
	Technical Assistance	General account budget (for the NIS) 200 million yen 540 million yen 840 million yen 1.37 billion yen 970 million yen 1.05 billion yen 1.05 billion yen 960 million yen	FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98	Invitation and dispatch of experts in the areas of economic planning, distribution, industrial policy, fiscal financing, etc.
		US$71.7 million in safety assurance assistance for nuclear power generation plants	Jul. 1992	Safety improvement using in-operation abnormality detection systems and cooperation program for nuclear power operation training centers.
		US$90 million in reform promotion assistance for the transition to market economy (for the NIS)	Apr. 1993	Used for the establishment and operation of Japan centers, which are human resource development bases, and operation of the Regional venture Fund set up jointly with the EBRD. Being implemented. (US$60 million of this amount spent for the Russian Federation.)
		US$30 million in small-and medium-sized enterprises development assistance	Apr. 1993	Small-and medium-sized enterprise development assistance, operated in human resource development programs and so on, primarily conducted through the Far East Small-and Medium-sized Enterprises International Center. Already implemented.
		Japan-Russian Federation Partnership for Reform (US$100 million)	Nov. 1998	Drastic expansion of intellectual and technical cooperation (offering the experiences of Japan's postwar economic and industrial policies).
	Others	US$100 million for cooperation in the area of dismantlement of nuclear weapons	Apr. 1993	Currently being implemented for the Russian Federation, Ukraine, Kazakhstan, and Belarus. (US$70 million of this amount spent for the Russian Federation.)
		US$200 million for cooperation in new projects in the area of dismantlement of nuclear weapons	Jun. 1999	Scheduled to assist in new projects, such as (a)dismantlement of decommissioned nuclear submarines in the Far East region of Russia, (b)promotion of the conversion of the military resources to the private sector through ISTC, (c)disposition of plutonium derived from dismantled nuclear warheads.