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 
 
¶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