WHAT IS THE DEVELOPMENT ASSISTANCE COMMITMENT?

Russia made the following commitments on debt relief at Gleneagles in 2005:

‘Russia has cancelled and committed to cancel $11.3 billion worth of debts owed by African countries, including $2.2 billion of debt relief to the HIPC Initiative. On top of this, Russia is considering writing off the entire stock of HIPC countries’ debts on non-ODA loans. This will add $750 million to those countries’ debt relief.’

This commitment was updated at the 2006 St. Petersburg Summit:

‘Russia and the World Bank agreed to collaborate in developing a debt-for-development swap for channeling R4.2 billion ($250 million) freed up from debt service to high-priority development actions in sub-Saharan Africa.’

In the annex to the St. Petersburg Update on Africa, Russia also made the following specific commitments to Africa:

  • Russia will join forces with the World Bank in the fight against malaria in sub-Saharan Africa, and will support the World Bank-led Booster Programme for Malaria Control which aims to achieve tangible results by 2010.
  • Russia has doubled its pledge to the Global Fund to R570 million ($40 million). It also intends to reimburse the Global Fund, up to 2010, nearly R3.9 billion ($270 million), which was distributed to fund projects in the Russian Federation.
  • Russia has committed to contribute $18 million to the Global Polio Eradication Initiative. No new commitments were made at the 2007 or 2008 G8 Summits.

No new commitments were made at the 2007 or 2008 G8 Summits.

DEVELOPMENT ASSISTANCE

As Russia did not make a commitment on ODA to Africa at Gleneagles, this chapter does not hold it accountable for ODA levels to the continent. However, in 2007 Russia passed a law that committed it to raising ODA levels to $400-$500 million per year in the short term, with a longer-term goal of scaling up development assistance to reach 0.7% of its gross national income. Although the law does not specify a timeframe for this increase, Russian Deputy Finance Minister Sergey Storchak said in 2007 that he expects to reach the short-term target within four to five years (2011-2012). Once Russia joins the OECD, progress against this commitment will be measurable. While it is not yet a member, the OECD’s programme with Russia, consisting primarily of policy reviews and meetings between Russian officials and their counterparts from OECD countries, is the organisations largest with a non-member country. The goal of the OECD’s cooperative programme is the accession of Russia to the OECD as a full member, a process that is underway. The Russian government has been participating in meetings to formally start the process of OECD membership, and to discuss legislative amendments for accession and compatibility, as well as to learn about collecting and presenting ODA statistics.

While ONE is unable to determine Russia’s total ODA, we are able to track certain development assistance activities. The country has made a strategic decision to channel a significant part of its development assistance through multilateral mechanisms. For example, Russia now has a $20 million agreement with the World Bank and WHO on malaria control in Africa. A description of progress in sector specific development assistance is reported as follows.

CONCLUSION

Last year, a Russian delegation including officials from across the government met with representatives from US development agencies. The purpose of the delegation was to learn from the experience of USAID and other similar development agencies. The Russian delegation is considering starting a government development agency as the country’s bilateral ODA continues to increase.

 

IS RUSSIA DOING ITS PART TO MEET THE G8's SECTORAL COMMITMENTS?
 

REPORT
DEBT
  • Russia has committed to contribute $33.85 million through to 2044 to compensate the International Development Association (IDA) for reflows lost due to the Multilateral Debt Relief Initiative (MDRI). As of June 30, 2008 Russia had delivered $33.37 million as an unqualified pledge. The remainder is on track to be compensated as almost the full amount due over 40 years has already been paid. Russia is therefore on track with this commitment.

  • Russia did not have any concessional claims against completion point HIPC countries. However, Russia has cancelled 100% of its commercial debt owed by completion point HIPCs. This amount includes 100% of its post-cut-off-date commercial debt.
TRADE
  • Russia is still in negotiations to become a member of the World Trade Organization. While negotiations are expected to be completed this year, unresolved issues for Russia's accession include its position on agricultural subsidies, export duties for timber, and the regulation of some state companies.

  • In the first ten months of 2008, Russia's trade with sub-Saharan Africa increased by 30% over the same period in the previous year, amounting to $1.9 billion.
HEALTH
  • Russia has contributed a total of $194.14 million to the Global Fund, with most funding being donated within the past two years. It contributed $78.4 million in 2008 and $85.74 million in 2007, marking a substantial increase from the $10 million a year contributed in 2005 and 2006. In 2007, Russia announced that it would reimburse the Global Fund for grant financing it had received to date; this totals $270 million over the next four years. Towards this pledge, Russia has contributed $164.14 million; it has two more years to fulfil this commitment.

  • Russia's total pledges and contributions to the Global Polio Eradication Initiative amount to $28 million, including $8.94 million in 2008 and $5.06 million for 2009. It contributed $3 million in both 2006 and 2007.

  • In 2007, Russia contributed $80 million to launch the first Advance Market Commitment, which is designed to incentivise the development of a vaccine against pneumococcal disease.

  • In 2007, Russia contributed $20 million to the World Bank and WHO for malaria control efforts in Africa. This move was seen by some as an indicator of Russia's growing role as a donor and active international development partner.
EDUCATION
  • Russia has contributed $4 million to the Education for All FTI Catalytic Fund for the period 2003-2010, which has been paid in full.13 It also contributed $3.2 million to the Education Program Development Fund over the same period, fulfilling its pledges.

  • In late 2008, Russia and the World Bank jointly committed to a five-year $32 million Russia Education Aid for Development (READ) Trust Fund, focusing on improving the quality of education, particularly in Central Asia and Africa. They also announced a $15 million Russian Financial Literacy Program, aimed at improving the financial literacy of international citizens.