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The United States General Accounting Office
               Washington, D.C. 20548
               National Security and
               International Affairs Division
               B-286196 L

               September 29, 2000

               The Honorable Marcy Kaptur
               Ranking Minority Member
               Subcommittee on Rural Development,
               Agriculture and Related Agencies
               Committee on Appropriations
               House of Representatives

               Dear Madam Kaptur:

               In December 1998, the United States responded to a request by the Russian Federation for food aid that
               was triggered by the twin effects of one of the lowest Russian grain harvests in decades and a severe
               financial crisis. The United States agreed to provide 3.7 million metric tons of food aid in the fiscal
               year 1999, at a cost of approximately $1.1 billion (including commodity and freight costs). Most of the
               food aid was sold by the Russian government to regional mills and processors and is expected to raise
               about $353.2 million for the Russian Pension Fund and $2.3 million for agricultural projects in Russia.  A
               small portion of the U.S. food aid was donated to Russian social institutions to feed some of the neediest
               people. The fiscal year 1999 program, which is administered by the Department of Agriculture’s Foreign
               Agricultural Service, was one of the largest food aid programs to a single nation in the history of U.S. food
               aid.

               …. Document continues

                 http://www.gpo.gov/fdsys/pkg/GAOREPORTS-NSIAD-AIMD-00-329/pdf/GAOREPORTS-NSIAD-AIMD-
                                                         00-329.pdf
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