U.S. Assistance to Russia - Fiscal Year 2003

The $958.4 million budgeted by all U.S. Government agencies for assistance programs in Russia in Fiscal Year 2003 is allocated roughly as follows:

Democracy Programs	$ 67.2 million
Economic & Social Reform	$ 67.5 million
Security & Law Enforcement	$802.7 million
Humanitarian Assistance	$ 12.3 million
Cross Sectoral Initiatives	$ 8.7 million

Democracy Programs. Creative USG assistance programs continue to foster Russia's transformation from an authoritarian form of government during the Soviet period to a democratic system that guarantees the fundamental rights of its citizens. USG-funded technical experts have advised Russian politicians about the development of modern political parties and the strengthening of democratic electoral institutions. USG programs have nurtured the emergence of an increasingly strong non-governmental sector in Russia, providing multiple opportunities for Russians to participate in civic life. USG-funded programs support the development of an independent media. Russian journalists have developed their professional skills through USG-funded exchange and training programs. Russian academicians and politicians have benefited from exposure to Western approaches to issues of state and local governance. This exposure helped inform the Duma's consideration of legislation to provide checks and balances within the government and equitable distribution of powers between the central and local governments. The involvement of concerned American jurists, funded by FSA technical assistance programs, has helped Russia reclaim the tradition of trial by jury in serious criminal cases. FSA technical assistance programs have also helped the Russian judiciary strengthen its ethics codes and assert independence from the executive branch.

Market Reform. USG assistance programs support the small-to-medium-sized enterprise sector (SMEs) by training entrepreneurs and supporting non-bank credit institutions to respond to SMEs' need for credit to expand their businesses and create jobs. Other programs are helping the Russian banking system transform itself into an effective intermediary of funds. Treasury administers assistance in the areas of effective use of budget resources. USG enterprise funds, which have turned handsome profits in recent years, have helped promising Russian companies grow. USG supported independent Russian think tanks have strengthened their analytic capacity and are increasingly influencing government policy-makers. Specialized assistance programs help develop and reform the large, inefficient agriculture sector. USG-funded technical experts have reviewed the complexities of the World Trade Organization (WTO) accession process with Russian officials and business representatives and helped draft WTO-compliant legislation.

Security and Law Enforcement Programs. The Cooperative Threat Reduction (CTR) program is the largest USG program of cooperative activities in Russia, accounting for nearly one quarter of total USG assistance from 1992 to date. CTR has focused primarily on destruction, dismantlement and storage of weapons of mass destruction (WMDs) and their delivery systems. In 2003, the Department of Defense has allocated $288.3 million for CTR programs, including $133 million to construct the Shchutch’ye Chemical Weapons Destruction Facility and demilitarize former nerve agent production facilities at Volgograd and Novocheboksarsk in Russia. The remaining funds will be used in programs to continue to transport, store and dismantle nuclear missiles, launchers and related infrastructure and to dismantle infrastructure associated with biological weapons.

The Departments of State and Energy administer complementary programs to counteract the threat of WMDs. Department of Energy resources, $470 million in FY2003, assist in safeguarding nuclear reactors and material and disposing of nuclear materials. Department of State programs help focus redirect the activities of former weapons scientists toward peaceful research endeavors. Today, these redirection programs are developing models to bring these scientists into self-sustaining enterprises, to focus their energies on significant health issues, and to work more closely integrating former BW/CW entities

After five years of engagement designed to train and equip Russian Customs, Border Guards, Ministry of Atomic Energy, and other border-control officials, the FY 2003 Export Control and Related Border Security (EXBS) program has shifted focus towards enhancing compliance and enforcement. While the EXBS program continues to provide radiation detection equipment and training, the emphasis is now on export control procedures and product identification training and software. This helps export officials detect violations more efficiently and leads to more comprehensive, effective border control regime.

In FY 2002-2003, approximately $9.4 million was allocated to assistance to law enforcement programs. These programs supported diverse activities: implementation of the July 2002 Criminal Procedure Code; adoption of modern anti-crime techniques in the fight against narcotics, smuggling, money laundering, terrorist finance, internet fraud, trafficking in persons and child pornography; development of US-Russian legal cooperation under the Mutual Legal Assistance Treaty; adoption of community-based policing in the Sakhalin region of the Russian Far East; and support of research into crime and corruption in Russia.

Humanitarian Assistance. The USG provides funding to U.S.-based NGOs that distribute humanitarian assistance in Russia. Since 1992, the Department of State has facilitated the delivery of approximately $665 million in humanitarian commodities to Russia at a total cost of $67 million. The program has become smaller in recent years. For FY 2003, USDA has approved a $9.8 million food aid program in cooperation with the Russian Farm Community Project, a U.S.-based NGO. In this monetization program, the NGO will sell 40,000 metric tons of corn and soybean meal and use the proceeds from that sale to fund agricultural development activities in the Dmitrov area of the Moscow region.

Cross-Sectoral Initiatives. These programs involve more than one of the above areas. For example, USG programs concerning management of natural resources combine sound business and ecological techniques to help Russia decide how to manage its Siberian forests. USG assistance helps independent Russian research and policy institutions produce scholarly articles and advice for policy makers that are specifically adapted to Russia, and a business information service helps Russian and U.S. enterprises identify opportunities for mutual cooperation. USG implementers are helping to bring civil society, local government, media and business together to combat corruption across Russia.

USG-funded assistance programs help Russia address its serious problems in health and child welfare by supporting improvements in primary health care, particularly health care services for women and infants. USG programs also helping provide services that reduce the number of children sent to orphanages. One clear sign of success is the reversal in Russia’s infant mortality rate, which had been increasing over the past fifteen years. The rate of increase in HIV/AIDS infection in Russia is among the highest in the world. USG activities target a reduction in rate by helping develop improved evidence-based models and practices and to disseminate successful models.

Exchange programs are a vital component of our assistance programs in all areas. In FY 2002, approximately 5,000 Russians came to the United States on USG-funded exchange and professional training programs. Since 1993, over 53,000 Russians have come to the United States on these programs.

The State Department operates an umbrella program called the "Regional Initiative," designed to promote cross-cutting development in selected areas of the country outside of the major population centers. Current areas of focus are the Volga Federal District, the Tomsk/Novosibirsk area, and the Russian Far East. The RI helps coordinate assistance activities in these regions, provides information to local residents about programs active in the area, and encourages greater participation of regional entities in on-going programs.

Many agencies of the United States Government are involved in the implementation of assistance programs, including the United States Agency for International Development (USAID), the Environmental Protection Agency, the Nuclear Regulatory Commission, the Departments of Agriculture, Commerce, Defense, Energy, Health and Human Services, Justice, Labor and State. USAID's web site for its Russia program is www.usaid.ru.