UN cannot work with Russian companies for humanitarian purposes due to sanctions
From five to six Russian companies are proactively working with the WFP on the food track on a credit basis - deliveries are made first and then the payment takes place
ROME, July 1. /TASS/. UN humanitarian agencies have significant constraints in cooperation with Russian companies due to Western sanctions imposed on them.
The debt of the UN World Food Programme (WFP) to one of companies is about $1 mln at the moment, a spokesperson of one of the largest Russian suppliers of goods and services to the WFP told TASS.
"The following situation has evolved at the moment - certain Russian companies, among the largest WFP contractors, were hit by sanctions, by the US ones so far, but it is not ruled out that European ones will also be imposed on them. Although the UN may not formally follow them, these companies were instructed to close their currency accounts; they cannot be serviced. It means it is impossible to receive payment for goods and services. We do not understand how this problem will be solved," the spokesperson said.
From five to six Russian companies are proactively working with the WFP on the food track on a credit basis - deliveries are made first and then the payment takes place. If the sanction list is expanded over time, it will "actually block Russian participation in WFP food aid programs," he added.
Russian agricultural companies have the advantage of dealing with delivery of food aid and organizing carriage to the destination. In particular, Russian companies are providing such aid to Afghanistan and also worked in Yemen, Palestine, and Syria. Russian entities are supplying pes, wheat flour and sunflower oil enriched with vitamins and minerals to fully cover basic nutrition needs.
Certain Russian companies were actually excluded from participation in tenders for WFP programs. This allegedly took place as demanded by Western donors of the organization. Representatives of the Russian agricultural sector say that even in case of termination of official cooperation, Russian agricultural products will nevertheless enter the market because of its high competitiveness and then WFP will buy it in third countries at an overstated price. "That is, the situation evolves that contradicts stated goals of WFP, specifically, to provide meals for many starving people, but goods are purchased due to politically motivated causes at a higher price, thereby reducing the number of starving people [to whom the aid is provided]," the spokesperson concluded.
In 2023, Russia contributed more than $60 mln to WFP funds, primarily for food needs of African, Asian, and Latin American countries.