A Note on G-7 Assistance Extended to the Soviet Union
In the recent past the Soviet Union received substantial assistance, mostly in the form of credits and guarantees from export credit agencies, particularly Hermes (Federal Republic of Germany). Nonetheless, considerable and understandable confusion surrounds the actual extent of assistance, and in public debate, opponents of assistance to Russia have tended to magnify the flows that have already gone to the former Soviet Union. 30 By 1990 and 1991, inflows of credits and grants barely exceeded outflows of debt servicing (amortization and interest payments).
According to preliminary and partial data collected by the EC during 1990 and 1991, the Soviet Union received commitments of assistance of $52.6 billion -- $2.3 billion in grants, $7.6 billion in untied loans, and $42.7 billion in tied loans. 31 In addition, Germany extended approximately $11 billion in assistance for the withdrawal of Soviet troops from the former East Germany. About two-thirds of these commitments ($28.1 billion) were actually disbursed. Only $1.7 billion of the disbursements came in the form of grants; the rest came as credits (of which $7.6 billion were untied, and $18.8 billion were tied). Russia's share of the overall disbursements was roughly 6 percent (approximately the share of the Russian economy in the Soviet Union), or about $17 billion over 1990 and 1991. Germany provided about half of the total disbursements ($14.6 billion). A large part of the German contribution involved credits to East German industrial