U.S. Assistance to Ukraine - Fiscal Year 2004

U.S. assistance programs in Ukraine in FY04 emphasize democratic reform, especially in preparation for the presidential elections in October 2004. In addition, the U.S. supports Ukraine’s integration into the Euro-Atlantic community, which 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.

The estimated $143.47 million budgeted by all U.S. Government agencies for assistance programs in Ukraine in fiscal year (FY) 2004 is allocated roughly as follows based on information available as of the date of this fact sheet:

Democracy Programs	$34.11 million
Economic & Social Reform	$42.38 million
Security & Law Enforcement	$61.98 million
Humanitarian Assistance	$1.33 million
Cross Sectoral Initiatives	$3.67 million

Democracy programs in Ukraine support electoral and local government reform, independent media, civil society, political party and parliamentary development, and the rule of law. Local government reform programs train administrators, lobbyists, and municipal professionals on strategic planning, management of services, and citizen participation. Assistance for independent media provides business, financial management, and marketing training for print and broadcast outlets. Civil society programs help strengthen NGOs and think tanks and develop community-level anti-corruption coalitions.

Additionally, political party and parliamentary development programs help generate responsiveness and accountability, increase the participation of youth and women in public affairs, and improve governance. Rule of law programs support advocacy centers and student legal clinics, improve legal education, and strengthen judicial associations.

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 sent 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 19,500 Ukrainian citizens to the United States on these programs in fields such as management, social service provision, and NGO development.

Market reform programs include accounting, commercial law, customs modernization, fiscal, banking, and land reform assistance, with a focus on land titling. To help small and medium enterprises, the U.S. Government, through the U.S. Agency for International Development (USAID), provides training, assistance, and consulting to promote private sector business development. The assistance program supports the European Bank for Reconstruction and Development (EBRD) partner banks and microfinance institutions as well as training for small and medium-sized business entrepreneurs.

The U.S. provides technical assistance to the Ministry of Finance and the Tax Administration to help reform tax policy and administration. However, this assistance is being phased out, since the Government of Ukraine has adopted a new, simplified tax code.

Security and law enforcement assistance to Ukraine in FY04 will amount to nearly $62 million. Self-declared and nuclear-free in 1996, Ukraine receives U.S. assistance to combat the weapons of mass destruction (WMD) infrastructure, 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. will contribute an additional $8 million towards its $146-million pledge for the stabilization and reconstruction of the Chornobyl Shelter, continuing to be the largest single donor.

Export Control and Related Border Security assistance will work to establish an effective security system to prevent the proliferation of WMD and their missile delivery systems. 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. Currently, Ukraine is the fourth largest non-NATO contributor of troops to Operation Iraqi Freedom (OIF)

Over $2 million in U.S. assistance under the Anti-Crime Training and Technical Assistance (ACTTA) program of the Bureau of International Narcotics and Law Enforcement Affairs will fund projects to help combat money laundering, trafficking in persons, and smuggling of narcotics. The ACTTA program also funds projects to improve the protection of intellectual property rights and support developments in border security systems that help prevent criminal activity. Programs also seek to engage with the Ukrainian government in support of basic legal reforms and the introduction of internationally accepted procedures for conducting investigations.

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 2004 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 the vulnerable population.

USAID addresses the social and health needs of vulnerable groups such as the elderly, women, children, orphans, and others most susceptible to social and economic risks. Recently, USAID launched a new HIV/AIDS five-year strategy that seeks to combat the growing threat of HIV/AIDS. Peace Corps Ukraine focuses on economic development, education, and environmental protection.