Identifier
Created
Classification
Origin
09MOSCOW939
2009-04-13 13:42:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Moscow
Cable title:  

THREE MORE PORK FACILITIES DELISTED, BUT

Tags:  EAGR ETRD ECON WTO RS 
pdf how-to read a cable
VZCZCXYZ0007
PP RUEHWEB

DE RUEHMO #0939/01 1031342
ZNR UUUUU ZZH
P 131342Z APR 09
FM AMEMBASSY MOSCOW
TO RUEHRC/USDA FAS WASHDC PRIORITY 5470
RUEHC/SECSTATE WASHDC 2848
INFO RUEHVI/AMEMBASSY VIENNA 4739
RUEHBS/USEU BRUSSELS
RUEHGV/USMISSION GENEVA 5295
UNCLAS MOSCOW 000939 

SENSITIVE
SIPDIS

USDA FAS FOR OCRA/KUYPERS, NENON; OSTA/BEAN,
HAXTON; ONA/TING, SALLYARDS
PASS FSIS DUTROW, HARRIES
PASS APHIS SNOWDON
STATE FOR EUR/RUS
STATE PASS USTR FOR CHATTIN, HAFNER, SMURPHY
BRUSSELS PASS APHIS/FERNANDEZ
VIENNA PASS APHIS/MITCHELL

E.O. 12958: N/A
TAGS: EAGR ETRD ECON WTO RS
SUBJECT: THREE MORE PORK FACILITIES DELISTED, BUT
FIVE PORK PLANTS RELISTED

REF: A) HANSEN EMAIL 4/10/09 TO KUYPERS
B) MOSCOW 267

SENSITIVE BUT UNCLASSIFIED

UNCLAS MOSCOW 000939

SENSITIVE
SIPDIS

USDA FAS FOR OCRA/KUYPERS, NENON; OSTA/BEAN,
HAXTON; ONA/TING, SALLYARDS
PASS FSIS DUTROW, HARRIES
PASS APHIS SNOWDON
STATE FOR EUR/RUS
STATE PASS USTR FOR CHATTIN, HAFNER, SMURPHY
BRUSSELS PASS APHIS/FERNANDEZ
VIENNA PASS APHIS/MITCHELL

E.O. 12958: N/A
TAGS: EAGR ETRD ECON WTO RS
SUBJECT: THREE MORE PORK FACILITIES DELISTED, BUT
FIVE PORK PLANTS RELISTED

REF: A) HANSEN EMAIL 4/10/09 TO KUYPERS
B) MOSCOW 267

SENSITIVE BUT UNCLASSIFIED


1. (SBU) SUMMARY: On April 10, 2009, the Russian
Federal Veterinary and Phytosanitary Surveillance
Service (VPSS) advised via official letter that
three more U.S. pork facilities were delisted due
to suspected fraud. The letter explains that VPSS
officials inspected a ship on its way to Japan
that had docked in a Russian Far East port to
refuel and found cargo with Russian labels. VPSS
claimed in their letter that they believe that
there are international smuggling rings trying to
sneak meat into Russia, and the three U.S. pork
plants were somehow involved. For this reason,
these plants are being "temporarily restricted"
despite the fact that the product was not even
intended for Russia. The delisting included the
largest cold storage, boxing and certification
facility for U.S. pork to Russia and will become
effective on April 20, 2009. (Post has not yet
received the 9-page attachment referred to in Dr.
Vlasov's letter.)


2. (SBU) Five hours following the notification of
the new delistings and after normal business
hours on April 10, VPSS Head Dankvert informed
the embassy via another official letter that VPSS
will be relisting five facilities which were
delisted in the January 27, 2009, letter from
Vlasov to Jones (Reftel B) (facilities #18674,
9201, 18079, 18435, and 27398.) The relistings
will become effective on April 15, 2009. The
text of this second letter, from VPSS head
Dankvert, will be sent via septel.

An official translation of the Vlasov letter
delisting three facilities follows. END SUMMARY


3. (SBU) BEGIN TEXT:

Moscow, April 10, 2009
# FC-NB-2/3124

Deputy Administrator
USDA Food Safety and Inspection Service
Mr. Ronald Jones

Dear Mister Jones,

The Federal Veterinary and Phytosanitary
Surveillance Service presents its compliments to
the US Department of Agriculture Food Safety and

Inspection Service and informs of the following.

VPSS and its territorial offices in their day-to-
day activities continuously deal with
international fraud in shipments of products to
the Russian Federation regulated by the state
veterinary inspection (particularly meat and
fresh sausage meat) of the unknown origin under
the brands of famous world producers including
the USA. This problem is especially urgent in the
Russian Far East region.

For example, containers HMCU 2005911, GCEU
6663389, CHIU 9026656, CHIU 9026825 with raw meat
arrived to the Nakhodka port (Primorskiy Kray) on
02.03.09 (March 2, 2009) supposedly on their way
to Japan as international transit on M/V Caribica
under the Cambodia flag (its port of
arrival/departure in accordance with the bill of
lading attached was the Russian port Nakhodka).
There were no veterinary accompanying documents
or reference to them in the presented bills of
lading (copies are attached).

In this connection, the Far East Customs
Directorate of the Russian Federal Customs
Service together with Primorskiy Kray VPSS
Directorate made a decision to inspect the cargo.

The inspection results determined that the
mentioned means of transport contained raw meat
(boneless pork) that in accordance with labels in
Russian was manufactured in the USA (photographic
material is attached).

We draw your attention to the veterinary
certificate number 136072 on the USDA export
stamp on the packaging, and the raw meat
production date.

The additional inspection carried out by the
Primorskiy Kray VPSS Directorate determined that
similar products arrived to Ekto firm on June 3,
2008, with the mentioned veterinary certificate
dated March 12, 2008 (the copy is attached). The
cargo completed customs clearance procedures in
July 2008.

VPSS expresses its deep concern with the current
situation and believes that this incident
confirms that the international rogue gangs are
stepping up in making attempts to do illegal
business using various schemes.

The situation is further aggravated by the fact
that currently VPSS territorial directorates have
no access to the database of the ocean and feeder
shipping companies that deliver containers from
the port of loading (transshipment) to the port
of destination in Russia.

In view of the need to take joint actions in
order to prevent fraud in international raw meat
trade, especially in the Far Eastern region, we
ask FSIS to make an investigation into the
mentioned incident and inform us of the findings
as soon as possible.

Prior to completion of the comprehensive
investigation VPSS imposes temporary restrictions
on shipments into the Russian Federation from
plants 17D, 17202A and 19246 involved in the
entire technological chain from slaughter
including dressing and up to cold store
facilities.

It follows from your reply dated March 30, 2009
to the VPSS letter dated March 20, 2009 No. FC-
AC-2/2416 regarding granting VPSS territorial
offices access to the database of the
international shipping companies that it is not
within FSIS competence to resolve this issue.

In this connection we ask you to provide us with
information on what US agency has the competence
to resolve this issue, and help us in making
arrangements to negotiate with this agency.

Mister Jones, please accept my assurances in the
deepest respect.

Attachment: text on 9 pages in one copy.

Deputy Head
N.A.Vlasov

END TEXT


--------------
THE STICK?
--------------


4. (SBU) The delistings appear to be in
retaliation for a letter dated April 8, 2009
written by the National Pork Producers Council
(NPPC) to President Obama highlighting the
arbitrary actions of VPPS and urging him to delay
Russia's WTO accession until Russia recognizes
the U.S. pork plant inspection system as
equivalent to Russia's. The letter which was
posted to the NPPC website found its way into
both the American and Russian media and according
to our sources incensed both Kremlin and Min Ag,
because NPPC wrote the letter to Obama one month
before the U.S. and Russian industry and government
representatives are scheduled to meet to work on
mutual issues of concern regarding U.S. exports of
pork and poultry.


5. (SBU) These recent delistings appear to have
nothing to do with human or animal health and
everything to do with politics. Before the
delisting were even announced, trade contacts
alerted the embassy to brace itself for
retaliation for the NPPC letter. VPSS has
repeatedly chastised USG officials for trying to
bring outside agencies into technical SPS
discussions. They prefer to "manage" their
issues by working directly with other regulators
and resent when issues under their competency
become elevated to the political level. The NPPC
letter clearly put the spotlight on their
questionable practices and threatened their
authority.

--------------
VPSS REACTS IN THE PRESS
--------------


6. (SBU) Officials in the Ministry of
Agriculture also publically expressed outrage
regarding the NPPC letter. VPSS Press secretary
Aleksey Alekseyenko stated to the press that he
does not understand why the US pork sector took
this route and at this time. "VPSS proposed to
meet with them, the American poultry industry,
and USG reps in the second half of May to discuss
urgent problems. It looks like the US pork
industry decided to take a different route by
writing a letter to U.S. President Obama."
Alekseyenko stated that American food safety
standards are much more liberal (i.e. worse) than
Russian standards. "The US pork sector does not
want to receive our inspectors. We demand that
they let us come and verify for ourselves."


7. (SBU) The Russian press also reported that
Russian experts confirmed that the American food
safety and inspection system is not very
effective, in light of several alleged scandals
in 2008 in the U.S. connected with the quality of
food products.

--------------
DELISTINGSIMPACT ON U.S. PORK EXPORTS
--------------


8. (SBU) Over the course of the past two years
the U.S. has seen roughly 50 percent of its
productive pork capacity delisted by the
Russians. Those facilities delisted on April 10
include the Cloverleaf Cold Storage
(establishment number 19246) facility in Sioux
City, IA. This is the second cold storage
facility delisted, which is significant, because
the delisting of cold storage facilities impacts
many U.S. exporters who use them to provide cold
storage, boxing, and certification of U.S. pork
to Russia. Cloverleaf was a top cold storage
export facility to Russia last year.

--------------
THE CARROT OR CLEAN UP?
--------------


9. (SBU) Seven pork plants remained delisted
since the January 27 letter (REFTEL B) for
clerical errors in the certificates. Per the
official letter from VPSS Head Dankvert, also
received on April 10, five of these seven
facilities will be relisted as of April 15, 2009.
VPSS probably realizes that delistings for
technical errors is unjustifiable, and the
failure to relist these facilities would leave
them vulnerable in the May bilateral discussions.
However, it is highly unusual to receive
notification of relistings from VPSS Head Sergey
Dankvert. It is possible that VPSS is attempting
to signal that the U.S. meat and poultry
industry's acquiescence to further inspections
and discussions scheduled for May is viewed by
the Russians as a step in the right direction.
At the same time, VPSS is clearly signaling its
disdain for the NPCC initiative to slow down
Russia's WTO accession until it abides by
international norms and standards in meat trade.



BEYRLE