I am pleased to provide you this Fiscal Year 2006 report on U.S. assistance and cooperative activities with Eurasia. This was an important year for U.S. Government assistance to this region. Twenty-two federal departments, agencies, and other major USG implementers obligated $1985.78 million in assistance to the twelve countries in this region as appropriated by Congress, including $549.39 million obligated from the FREEDOM Support Act (FSA) account.
U.S. assistance maintains effective support to the region. In supporting democratic reforms, Ukraine continues to make strides as their March 2006 Parliamentary elections met international democratic standards and were characterized as the best and freest in both Ukrainian history and the former Soviet Union outside the Baltic States. On the economic front, Armenia continued to improve rapidly, as evidenced by double-digit growth, low inflation, and declining poverty rates; Ukraine and Moldova received approval and funding for MCA Threshold Programs to combat corruption; and Russia met the benchmark standards for phase out of funding for economic programs, with the exception of limited assistance in areas of special importance, including the Russian Far East and the North Caucasus. In the realm of peace and security, U.S. assistance helped countries foster their reform goals; such as Kazakhstan's commitment to military reform, regional stability, non-proliferation, and partnership in the Global War on Terrorism. Finally, in FY 2006 the Government of Georgia continued to implement sweeping reforms of its health, education, and child welfare systems, as they have done throughout the three years since the Rose Revolution.
Despite these successes, however, there is still much work that needs to be done to help empower the peoples of these regions, and further their integration into the international community. During the next fiscal year, the Office of the Coordinator for U.S. Assistance to Europe and Eurasia will continue to direct and coordinate USG funding throughout the region to best fulfill U.S. foreign policy goals.
Thomas C. Adams, Coordinator
U.S. Assistance to Europe and Eurasia