U.S. asked to clarify funding issues regarding Russian chemical weapons disposal facility
Interfax
May 14, 2007
(For personal use only)

Russia's Audit Chamber has asked the U.S. Government Accountability Office (GAO) to help resolve problems related to the funding of the construction of a Russian chemical weapons disposal facility in Shchuchye, Kurgan region.

"Given the two countries' mutual interest in implementing the project, the Audit Chamber urged the GAO to facilitate U.S. funding of the Shchuchye project, but no response has arrived yet," Audit Chamber head Sergei Stepashin said in an article published by the Novaya Gazeta on Monday.

Spending on building [chemical weapons disposal] facilities, mostly in Shchuchye, were to amount, under initial obligations, to $987 million. In fact, just $258.1 million has been received, Stepashin said.

"The funds provided by the U.S. are concentrated on the bank accounts of the U.S. Defense Department, whose officials have made it understood that the management-related spending stands at no less than 9%, while the spending by the U.S. general contractor - Parsons - operating in Russia is no less than 20.5%," Stepashin said.

"This elasticity of funding channels leads to the loss of transparency in spending and does not allow Russia to assess how well substantiated the U.S. spending on Russian projects is. All this makes it difficult for Moscow to honor it obligations under the convention," Stepashin said.