31.12. 91 Official Journal of the European Communities No L 362/89 (Acts whose publication is not obligatory) COUNCIL COUNCIL DECISION of 16 December 1991 granting a medium-term loan to the Soviet Union and its constituent Republics (91/658/EEC) THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Article 235 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the BEuropean Par- liament ('), Whereas bilateral links between the Community and the Soviet Union (USSR) were strengthened by the coopera- tion agreement which entered into force on 1 April 1990 ; Whereas the Community wishes to support the efforts of the USSR and its constituent Republics to bring about political reform and economic restructuring ; Whereas the USSR and its constituent Republics are facing a critical economic and financial situation ; Whereas the Soviet authorities have asked the European Community, the United States of America, Japan, Canada and other industrialized countries for financial assistance to underpin the development of democratic processes within the USSR and its constituent Republics and to help the country face up to the worsening food and medical situation ; Whereas the Soviet authorities have supplied adequate information on their needs in these areas; () OJ No C 326, 16. 12. 1991. Whereas the granting by the Community of a medium- term loan of ECU 1 250 million to the USSR and its constituent Republics is an appropriate means of provid- ing food and medical aid and supporting the continuation of the economic reforms; Whereas the assistance granted pursuant to this Decision is in addition to that already committed in the form of food aid to the USSR (food aid amounting to ECU 250 million and a credit guarantee of ECU 500 million for exports of agricultural and food products); Whereas it is appropraite that the Community, in applying this Decision, should ensure balanced distribu- tion between the Republics in accordance with their actual needs and that traditional trading links between the Republics are not disrupted ; ' Whereas Community assistance to the USSR and its constituent Republics forms part of an overall package which should be based on balanced contributions by the main industrialized countries ; Whereas provision should be made for measures to ensure that, while not compromising the normal conditions of supply according tc the rules of the market, the Commu- nity loan is used to finance imports of agricultural and food products and medical supplies originating in the Community and in Bulgaria, Czechoslovakia, Hungary, - Poland, Romania, Lithuania, Latvia, Estonia and Yugo- slavia in so far as these countries are able to supply them ; Whereas exports financed pursuant to this Decision may help to restore trade between the countries of central and eastern Burope and between those countries and the USSR on the basis of transactions being paid for in convertible currencies ;