U.S. Assistance to Ukraine -- Fiscal Year 2005

U.S. assistance programs in Ukraine in Fiscal Year 2005 will promote continued economic reforms and help cement democratic advances after the "Orange Revolution" of late 2004. U.S. assistance will support Ukraine’s expressed interest in integration into the Euro-Atlantic community, and will help lead to a market economy characterized by a growing middle class, a civilian-controlled military, internationally accepted law enforcement practices, and a vibrant civil society. U.S. assistance will help the Government of Ukraine (GOU) fight proliferation of weapons of mass destruction and other contraband, increase safeguards over nuclear sources, enhance the safety of nuclear power plants, and combat trafficking in human beings. In addition, U.S. assistance will support health and social sector reform, especially in the fight to halt the spread of HIV/AIDS and tuberculosis. It will also provide humanitarian relief for disadvantaged populations, primarily in Crimea and Donetsk, and will help develop safer operations in Ukraine’s coal mine sector. Finally, U.S. assistance will support the construction of a shelter over the destroyed Chernobyl nuclear power plant site.

The estimated $174 million budgeted by all U.S. Government agencies for assistance programs in Ukraine in FY 2005 is allocated roughly as follows based on information available as of the date of this fact sheet:

(Note: the following figures include a supplemental $60 million FREEDOM Support Act appropriation to support the new reform-oriented government of Ukraine after the Orange Revolution.)

Democracy programs in Ukraine support electoral and local government reforms, independent media, civil society, political party and parliamentary development, rule of law, and the fight against corruption. Local government reform programs train administrators, advocates for reform, and municipal professionals in strategic planning, management of community services, and citizen participation. Assistance to independent media includes business management, marketing training for print and broadcast outlets, training for journalists, and programs that increase the flow of objective information. Civil society programs help strengthen Non-Governmental Organizations (NGOs), think tanks, and encourage greater citizen participation.

Political party and parliamentary development programs help generate responsiveness and accountability, increase the participation of youth and women in public policy-making, and contribute to improved governance. Elections-related assistance promotes free, fair, and competitive elections at the national and local levels.

Rule of law programs support increased access to justice through advocacy centers and student legal clinics, improve legal education, and strengthen judicial associations. A planned expansion of rule of law and anti-corruption assistance will support judicial reforms, increase institutional transparency within the GOU, and strengthen anti-corruption advocacy initiatives.

Training and exchange programs give the next generation of Ukrainian leaders first-hand experience with the day-to-day functioning of a market-based, democratic system. Last year, the U.S. Government brought approximately 1,500 Ukrainian citizens to the United States on academic and professional exchange programs. Since 1993, the U.S. has funded the travel of over 20,250 Ukrainian citizens to the United States on these programs in fields such as management, social service provision, and NGO development.

Market reform programs provide accounting, commercial law, fiscal, banking, and land reform assistance to Ukraine, with a focus on land titling. To increase trade and investment and further integrate Ukraine into the global economy, the U.S. is assisting Ukraine in joining the World Trade Organization (WTO). U.S. assistance is also working to increase the competitiveness of Ukraine’s enterprises and to improve the business environment by reducing regulatory constraints. The U.S. supports increased access to credit for small and medium-sized business enterprises (SMEs) through the development of mortgage lending, financial leasing, and the establishment of a credit bureau. U.S. assistance also supports the European Bank for Reconstruction and Development (EBRD) partner banks and microfinance institutions as well as training for SMEs.

Security and law enforcement assistance to Ukraine in FY 2005 will amount to nearly $65 million. Self-declared as nuclear-weapons-free in 1996, Ukraine receives U.S. assistance to combat the trafficking of weapons of mass destruction (WMD), increase safeguards for the nuclear-reliant energy sector, improve security for radiological and nuclear materials, and redirect former weapons expertise toward peaceful and sustainable research activities. The U.S. continues to be the largest single country donor to the stabilization and reconstruction of the Chernobyl Shelter and in March 2005 pledged an additional $45 million towards a total $191-million pledge (pledges were made in 1997, 2000, and 2005).

Export Control and Related Border Security (EXBS) assistance will work to establish an effective export control system to prevent the proliferation of WMD, their delivery systems, conventional weapons, dual-use commodities, and related items. In addition, the U.S. continues to promote regional stability by helping Ukraine enhance its interoperability with NATO forces through the International Military Education and Training and Foreign Military Financing programs. Ukraine is the fourth largest non-NATO contributor of troops to Operation Iraqi Freedom.

Other programs will support Ukrainian efforts to develop the skills of law enforcement personnel, judges, and defense attorneys, including a training curriculum for judges on trafficking in persons. U.S. assistance will also help Ukraine professionalize its border guard service and, working with the International Organization for Migration, better control the flow of migrants to and through Ukraine.

Current humanitarian programs in Ukraine consist of the shipment, delivery, distribution, and monitoring of humanitarian commodities through the State Department Humanitarian Transport Program. The total value of the U.S. humanitarian commodities provided to Ukraine in FY 2005 is estimated to be in excess of $15 million. The U.S. funds a humanitarian program in Crimea to assist formerly displaced persons, mainly Crimean Tatars, and a medical humanitarian program in the Donetsk Region to assist the ethnic Greek population. Additionally, the modern medical clinic in the Donetsk Region provides medicines, medical equipment, and supplies for treatment of vulnerable populations.

U.S. health and social sector programs are assisting Ukraine to reduce the transmission and impact of HIV/AIDS and improve health and social conditions. U.S. assistance puts a high priority on combating HIV/AIDS and fighting Trafficking in Persons (TIP). These initiatives are in response to the rapidly escalating HIV epidemic as well as the status of Ukraine as a source, transit, and destination country for TIP. Other health and social priorities are responses to the epidemic of tuberculosis (TB) and support for reproductive health/family planning policies and services. U.S. assistance also addresses issues that involve orphans and vulnerable children (OVC) and maternal and child health (MCH).

Supplemental FREEDOM Support Act Funding was appropriated by Congress to assist the Ukrainian Government’s reformist program. These additional funds will focus on promoting rule of law and fighting corruption, assisting the Ukrainian Government to effect key economic reforms (with programs supporting Ukraine’s WTO accession efforts), preparing for the 2006 Rada (parliament) elections, promoting full access to independent information and developing civil society -- with a special focus on the East and South of Ukraine -- supporting municipal governance, and providing additional safety programs and alternative employment for coal miners in the Donetsk region.