Political and Economic Overview
Political developments in Ukraine in 2002 were a study in contrasts. In March 2002, Ukraine held parliamentary elections, which the Organization for Security and Cooperation in Europe (OSCE) declared to be flawed, but an improvement over the previous elections. However, since the parliamentary elections, there have been widespread complaints of media censorship, and increased pressure on parliamentary deputies to join a pro-presidential voting bloc. During the spring, the Ukrainian Government made a clear public statement of commitment to seek NATO integration, as part of a national policy of joining Euro-Atlantic institutions, and followed up by hosting a successful NATO-Ukraine Commission meeting in Kiev in July. However, the authentication of a recording in which President Kuchma approved the proposed transfer of the Kolchuga air defense system to Iraq created a political scandal in Ukraine. The U.S. Government and its NATO allies responded by downgrading Ukraine's participation in the NATO-Ukraine Commission meeting at the November NATO Summit in Prague from a summit to a ministerial. Nevertheless, concurrently, Ukraine developed with NATO a detailed and forward-leaning Action Plan to accelerate Ukraine's integration with NATO. This Action Plan was approved at Prague. In November, President Kuchma appointed Donetsk Governor Viktor Yanukovych as Prime Minister; a slight majority in the Parliament approved his nomination.
Ukraine's economic growth continued in 2002 at a rate of about 4.1 percent, lower than the nine-percent growth of 2001. Inflation was approximately three percent. After the passage of a spate of reform legislation late in 2001, the reform process has slowed considerably. Energy sector reform saw only modest progress, with the Cabinet approving a plan to deal with some energy sector debt. The summer months saw good results from last year's agricultural reforms, as Ukraine recorded its highest harvest since independence. Agricultural exports picked up as result, and lower food prices were a major contributor to keeping inflation down. On the fiscal side, lower growth and minimal privatization caused revenues to fall below expectations. The Ukrainian Government has scrambled to cut spending and to increase borrowing to fill the budget gap. Despite some downgrades from rating agencies, Ukraine successfully raised $260 million through a Eurobond offering in the fall of 2002. Ukraine ended its International Monetary Fund (IMF) ESF program without receiving the final tranche of assistance and is now negotiating with the IMF for a stand-by facility. Ukraine remains on track, but is proceeding slowly toward fulfilling the requirements for a second Programmatic Adjustment Loan from the World Bank.
Overview of U.S. Government Assistance
In FY 2002, the U.S. Government provided an estimated $280.48 million in assistance to Ukraine:
Of the roughly $156 million in FY 2002 FREEDOM Support Act funds, USAID programs accounted for approximately $74 million and U.S. State Department Public Diplomacy programs accounted for about $25 million. In FY 2002, the U.S. Government increased its focus on democratization efforts and electoral assistance in connection with the March 2002 parliamentary election. New programs to expand Internet access for Ukrainians were put in place. Assistance was increasingly directed to the regional and local levels of government and to the private and civic sector. Private sector assistance focused on assisting agricultural producers and small business, by providing access to credit, working to reduce regulations, and strengthening property rights. In September 2002, new obligations of FSA funds in programs involving the central Ukrainian Government were paused temporarily following the authentication of the recording regarding the Kolchuga system.
Training, Exchange, and Educational Reform Programs
Since FY 1993, U.S. Government-funded exchange programs have brought approximately 18,000 Ukrainian citizens to the United States for long-term study or short-term professional training, including over 2,100 in FY 2002 alone. As a result, a growing cadre of Ukrainian citizens in leadership positions understands the basics of democratic government and a market economy.
U.S. Department of State - Public Diplomacy Exchanges: In FY 2002, more than 1,550 Ukrainian citizens traveled to the U.S. to participate in academic and professional exchanges. The International Visitor (IV) Program sent over 100 Ukrainians to the United States on programs in fields including IPR, media management, NGO development, judicial reform, educational reform, adoption, and tourism/small business development. Outreach to the next generation remained strong as 99 Muskie/FSA Graduate fellows, 109 FSA Undergraduate fellows, and over 400 Future Leaders Exchange Program (FLEX) secondary school students studied in the U.S. Even at the current high levels, competition for exchange program slots remained intense, and applicant quality remained high, thanks to effective publicity and recruiting campaigns and the continued growth of English-language competence in Ukraine. Public Diplomacy programs are administered by the U.S. Embassy's Public Affairs Section in collaboration with the Bureau of Educational and Cultural Affairs (ECA), and implemented in Ukraine by several U.S. partner organizations, including the American Councils for International Education (ACIE/ACCELS), the International Research and Exchanges Board (IREX), and Project Harmony.
U.S. Department of State - English-Language Training: Building English language capacity facilitates Ukraine's integration into Western structures. In FY 2002, four English Language Fellows were placed at institutions of higher learning in three Ukrainian cities. These specialists traveled all over the country, interacting directly with hundreds of Ukrainian English-language teachers in seminars, workshops and conferences, in addition to on-going courses at their home institutions.
USAID Training Programs: Through the Global Training for Development (GTD) and Strategic Technical Assistance for Results with Training (START) projects, USAID trained nearly 1,228 citizens of Ukraine, approximately 49% of whom were women, through 114 U.S.-based, in-country, and third-country training programs in FY 2002. Training focused on agricultural reform, trafficking in persons, sustainable development, banking reform, commercial law, e-commerce, economic development, and other areas. Seminars for 127 rural lawyers increased participants' understanding of the legislative framework governing land tenure and land relations, which is crucial to farmers aiming to use their land as collateral in seeking capital improvement loans. Legislative drafters received intensive training to improve their understanding and skills in drafting legislation in support of a liberalized commercial sector. Participants in a program on commercial law curriculum development learned how to develop and adapt Ukrainian law curricula to meet world standards. Another program examined how e-commerce functions in Western Europe and what constitutes a comprehensive e-commerce legal framework. USAID's work with the National Center for Training of Bank Personnel of Ukraine has led to the development of an MBA program with a U.S. internship component and the development of distance learning programs and online course. All told, USAID has funded 37 different courses in banking and finance (a total of 302 classes) for more than 6,000 bankers from 147 commercial banks in 302 classes. A training program to promote economic development in Kharkiv Oblast brought a delegation of local officials, including the oblast governor, to the United States to meet with their American counterparts in Ohio and learn about different approaches to economic development. Upon returning to Ukraine, one program alumnus established a municipal development agency to encourage economic and business development in the community. The same alumnus also established an association uniting the economic development offices of ten communities in Kharkiv Oblast. The association markets the region to external investors, establishes public-private partnerships for regional growth, and assists local companies in attracting international trade partners.
Peace Corps English-Teaching Volunteers: In FY 2002, Peace Corps placed a total of 85 volunteers (PCVs) in more than 60 communities throughout Ukraine. PCVs developed curricula and conducted courses in English, history, literature, leadership and democracy, journalism and civics. Over 6,000 students were taught by PCVs and as a result improved their English competency and became more aware of and knowledgeable about global issues through conversations, debate clubs, civics activities and English language and culture camps. At least 350 students took TOEFL preparation courses conducted by PCVs that enabled them to considerably improve their English skills and compete for places in international exchange programs. Volunteers have organized summer schools and retreats for secondary school and university students and teachers. 3,500 Ukrainian students and young teachers have demonstrated their capacity to use critical thinking and decision-making skills and have demonstrated increased community awareness and civic responsibility. Volunteers have run 187 training events in their communities with 4,675 Ukrainian teachers as participants. In addition, 180 former teachers of Russian have been re-trained with PCVs' assistance. As a result, Ukrainian English teachers have enhanced their English skills and knowledge of current teaching methods. Ukrainian teachers, especially in remote town schools, have begun to apply new methods of teaching.
U.S. Department of Agriculture (USDA) - Cochran Fellowship Program: Under the Cochran Fellowship Program (CFP), short-term training is provided for senior and mid-level specialists and administrators, from the public and private sectors, concerned with agricultural trade, agribusiness development, management, policy, marketing, and technology transfer. All training occurs in the United States. In FY 2002, the Cochran Program trained 20 participants from Kiev, Kharkiv, Kherson, Cherkassy, Khmelnitsky and Dnipropetrovsk Oblasts. Participants in this year's training included eight officials from the State Statistics Committee of Ukraine; two private sector supermarket executives; four meat processors; four scientists engaged in biotechnology research; three dairy managers; and one professor of dairy science. Since 1992, the CFP has provided training for 287 Ukrainians.
U.S. Department of Agriculture (USDA) - Faculty Exchange Program: The Faculty Exchange Program (FEP) has been operating in Ukraine since 1995. The program promotes the development of sound agricultural policy and effective and competitive agricultural marketing and business systems in the Newly Independent States. The FEP provides a six-month training program to educators from Ukrainian agricultural institution in agribusiness, financial planning, government policy, business planning, agricultural economics and management, personnel management, business planning/administration, and agricultural equipment marketing. In FY 2002, eight educators from agrarian universities and academies in Sumy, Dnipropetrovsk, Melitopol, Kharkiv, Ternopol, Vinnitsa and Uman trained at U.S. land grant universities. Since its inception, the FEP has trained 50 Ukrainian agricultural educators. Also under this program, Pennsylvania State University provided technical assistance on agricultural extension systems to Ukrainian agricultural universities.
U.S. Department of Commerce - Special American Business Internship Training (SABIT): In FY 2002, a total of 31 Ukrainians traveled to the United States under the SABIT program for one-to six month internships in environmental technologies, transportation infrastructure, oil and gas exploration, standards in telecommunications, gas pipelines, plastics, and oil pipelines. Eight Ukrainians took part in the regular SABIT Program, and 23 took part in specialized programs in areas including environmental technology, standards, oil and gas exploration and pipelines. In FY 2002, the Commercial Service in Kiev and SABIT began to network carefully on candidates and to give priority to those applicants who would show benefits for Commercial Service's U.S. export assistance programs. For example, this networking helped 3M, which used a SABIT program for medical technology certification. 3M reported that the procedures now for registering medical products in Ukraine have improved substantially.
Democracy Programs
U.S. Department of State - Media Development Fund (MDF): The U.S. Embassy's MDF is a small-grants program that promotes free and independent media in Ukraine. Priority areas for assistance include improving the legal, administrative, and tax environment for Ukrainian media; expanding the use of the Internet as a news and information tool; improving professional standards of Ukrainian journalists; and increasing the capacity of Ukrainian media to operate freely and independently. In FY 2002, the MDF awarded over 45 grants, totaling some $460,000, to independent newspapers, radio and television stations, individual journalists, and NGOs promoting the development of independent media. Since the program's inception in March 2001, the MDF has awarded a total of $650,000 in media grants. During the Parliamentary election campaign (January-March 2002), MDF grants supported monitoring and content analysis of media coverage of candidates and blocs, enabled independent print and broadcast media to increase election coverage, and supported NGOs that monitored press freedom and journalists' rights. An MDF Grant provided support for initial organizational work of the All-Ukraine Public Monitoring Committee, which played a key role in coordinating and publicizing the results of monitoring of media coverage and election law violations during the run-up to the March 2002 parliamentary elections. The Fund has supported innovative projects, such as "Telekrytika" (TeleCritic), a website that provides independent information and analysis of Ukrainian television programming and coverage of legal and legislative developments concerning broadcasting. "Telekrytika" has become a "must-see" site for Ukrainian television professionals, the National Broadcast Council (Ukraine's equivalent of the U S. Federal Communications Commission), and the interested public. The Fund and the International Renaissance Foundation co-funded the initial stages of Public Radio, an innovative project for a completely independent, non-commercial radio station. The station currently produces programs heard on other non-state stations, as well as through the Internet, since the National Broadcast Council has yet to approve its license application. MDF grants have increasingly gone to media outlets and NGOs outside of Kiev, boosting professionalism, improving technical bases and providing support for regional networking, training, and advocacy for journalists.
USAID Independent Media Programs: Ukraine's non-state media continued to face increasing difficulties in FY 2002. Licenses were summarily revoked, journalists were harassed, and the government advised media on how to cover news events. The lack of editorial independence prompted several leading broadcast journalists to resign and others to take steps to form an independent trade union and strike committee. USAID's independent media programs continued to help defend freedom of the press through professional skills and development, business management training, support for trade associations, and legal counsel.
USAID Support for Civic Activism and NGO Development: In FY 2002, USAID contributed to the growth of civic activism in Ukraine by supporting civic watchdog groups such as the Committee of Voters of Ukraine (CVU), which is now the country's largest NGO and whose national network of local chapters has had a tremendous impact on democracy-building at the community level. USAID seeks to foster increased civic activism through two primary programs:
USAID Political Process and Party Building Programs:
USAID Rule-of-Law, Parliamentary Development Programs: In FY 2002, USAID continued to support judicial and legislative strengthening and reform, as well as advocacy, with the goal of increasing citizens' awareness of their ability to protect their rights. ABA/CEELI expanded its advocacy program by sponsoring 20 pro bono human rights and environmental centers throughout Ukraine, conducting substantive training for legal practitioners and judges, and developing an electronic information-sharing network. In anticipation of the March 2002 elections, ABA/CEELI developed a cadre of advocates (lawyers) specially trained on the new election code in order to promote judicial independence by fostering the development of judicial associations, facilitating seminars, and providing legal resources to judges. ABA/CEELI is working to improve judicial administration by developing a case management system, making informational resources available online and computerizing one appellate district and two local courts. USAID also supports legislative reform and strengthening through assistance to the Verkhovna Rada (Parliament). With the goal of increasing the professionalism of the Rada staff, the Parliamentary Development Project (PDP) provided policy analysis training to committee secretariats and assistants to parliamentary deputies to help them focus on public-policy problems, the formulation of policy alternatives, and legislative solutions. PDP provided technical assistance to the Rada on key reform legislation, such as the election law, law on the judiciary, the draft tax code and civil code, as well as on local government and administrative reform. In 2002, the Rada held 16 public hearings despite being preoccupied with the March elections and selecting new parliamentary leadership. In 1999, it had only held four hearings; thus transparency has been improved. Following PDP recommendations, in FY 2002, biweekly press conferences were held, an improved web site was launched, and a new Press Center was set-up in the plenary building, dramatically increasing journalists' access to parliamentary proceedings and the Rada members themselves.
USAID Anti-Corruption Programs: In September 2001, USAID launched a new civil society-building program to combat corruption and promote increased transparency and accountability at the local level. The program established ten public-private partnerships with local governments demonstrating fair and transparent processes. Each partnership develops tailored strategies against corruption based on a survey of citizen concerns. The local partnerships hold public meetings, establish public-private working groups, monitor and evaluate anti-corruption efforts, and establish a citizen advocacy office that can advise and actively represent people that have been victims of corruption. Public awareness campaigns emphasize the importance of building a civil society and public-private partnerships. At the national level, an advisory board with representatives from the local partnerships and national organizations will design national-level anti-corruption activities that address issues raised by the local partnerships. The Rada Anti-Corruption Committee is actively supporting the implementation of this program.
USAID Local Government and Municipal Development Programs: In FY 2002, a USAID-funded computerized budget model helped 28.6% of Ukraine's cities improve their financial management and transparency. Over 233 of these cities now actively use citizen task forces and advisory boards. The advisory boards focus on such issues as economic development, communal services, strategic planning and tourism. With USAID assistance, 67 cities have increased the transparency of government operations by using competitive bidding for services and assets. In addition, 48 cities improved their management of municipal services and assets such as public transportation, water and other communal services; tariff collection rates; and reduction of energy consumption. During FY 2002, 14 U.S.-Ukrainian municipal partnerships worked together to achieve results in economic development, budget, housing/communal services, transportation, and citizen participation through a program implemented by the U.S.-Ukraine Foundation (USUF). The successful Lviv Vodokanal Technical Assistance Program has been replicated and "rolled out" to an additional eight cities, providing these cities with the skills to manage their city water systems efficiently. USAID supported the Association of Ukrainian Cities (AUC), whose membership has grown to 385 municipalities. As a result of USAID's programmatic endeavors, the AUC successfully lobbied for the passage of a new Budget Code that provides local governments with more revenue stability and fiscal autonomy. The AUC increased its training capacity, improved its communications network through the establishment of regional offices in 22 oblasts, and collected and disseminated over 50 "best practices" among Ukrainian local governments through its website and five publications.
U.S. Department of Commerce - Good Governance Program (GGP): The GGP led discussions with private sector groups from Ukraine on ethics and compliance programs. The GGP also conducted one-day business ethics workshops for a group of Ukrainian media professionals and a group of entrepreneurs in coordination with the U.S. State Department Community Connections program, the Dallas Council on World Affairs, and World Boston.
U.S. Department of State - Democracy Funds Small Grants Program: In FY 2002, the U.S. Embassy's Democracy Commission responded to an increased funding level by conducting regionally-based, open grant competitions in addition to the regular grant solicitation process. The Commission awarded 69 grants totaling $860,500 to Ukrainian NGOs during FY 2002. The grants funded projects in areas including human rights education and monitoring, environmental awareness, volunteerism, election monitoring, and advocacy for the handicapped. The Democracy Commission awards small grants directly to democracy-building organizations in Ukraine, enabling them to develop their own programs and become self-sustaining. In FY 2002, Democracy Commission grants helped NGOs work for free and transparent parliamentary elections, including support for projects on voter information, training election monitors, and promoting political participation by young people. Another Democracy Commission grant co-funded exit polls, conducted by independent think tanks and polling companies, that many observers saw as crucial in insuring an honest vote count.
U.S. Department of State - Global Internet Policy Initiative (GIPI): GIPI, which is implemented by Internews and the Center for Democracy and Technology, enables U.S. partners to work with Ukrainian partners to establish ongoing working groups with key stakeholders to develop and promote an agenda for policy reform in order to support affordable and unfettered Internet access. These key stakeholders include Internet service providers (ISPs), content providers, foreign investors, telecommunications and wireless service providers, NGOs, government officials, and foreign experts. In FY 2002, GIPI staff assisted the Ukrainian Government with the draft of a new law on telecommunications, which will liberalize the sector and eventually allow for competition on the telecom market. Additionally, GIPI educated key policymakers and stakeholders on the new draft telecom law through a series of roundtables. GIPI's staff has developed draft legislation on e-signatures and is currently working on an online journal of e-governance for the City Administration of Kiev. GIPI is also working with the NGO community in Ukraine to help them exploit information and communication technology in their work with civil society.
U.S. Department of State - Internet Access and Training Program (IATP): By the end of FY 2002, IATP, which is administered by IREX, had opened a total of 26 public-access Internet facilities in Ukraine. Major emphasis is now on consolidating IATP's existing facilities and promoting their use by alumni of U.S. Government-funded exchange programs, as well as by other target audiences. IATP facilities were active centers for alumni commemorations of the first anniversary of the September 11 terrorist attacks, including a special website created by alumni in Odesa with art work and personal statements, and a nationwide online chat, during which alumni at several locations discussed the significance of September 11 with U.S. Ambassador Carlos Pascual.
U.S. Department of State - Library Electronic Access Program (LEAP): LEAP is an U.S. Embassy-administered program that by the close of FY 2002 had awarded grants totaling $900,000 to public libraries across Ukraine to create public access Internet centers. More than 40 centers were opened in FY 2002 in regional capitals and smaller cities. Each round of the grant competition attracted greater interest and more proposals, as word of the program's impact spread in Ukraine's library community. The centers are working at maximum capacity and serve from 1,000 to 2,000 Internet users per month. When all 52 of the projected centers are online, they will serve approximately 100,000 users per month, a significant number in a society in which it is estimated that only some two percent of the population has Internet access. Internet centers created by the program are open to library patrons at no charge for at least two years. Libraries have proved to be innovative and reliable partners, in many cases leveraging the LEAP grants to get additional computers and funding from local government and businesses, and managing to stretch grants to create local networks among branch libraries. Use of the centers is high among young people and students, but training in Internet use is also provided for businesspeople, local government, and public health and NGO personnel, among others. LEAP has encouraged expansion of Internet services to some smaller regional cities; once the use of the LEAP Internet centers in two cities in Ternopil Oblast demonstrated the level of demand among the population, commercial Internet service was extended to these localities. The LEAP Centers are linked to the U.S. Embassy's Information Resource Center and serve as vehicles for the IRC's electronic information outreach.
U.S. Department of State - "Windows on America" Centers: This U.S. Embassy-based program provides funding to public and academic libraries for resource centers offering up-to-date information about the U.S. Government, business, education, and English language teaching. In exchange for providing rent-free space and a staff person to manage the center, the partner libraries also receive a grant for furniture and equipment, including a computer with Internet access. The Windows on America Centers serve as an integral part of U.S. outreach activities, offering a distribution point for U.S. Government publications, a meeting place for U.S. Government-program alumni, and a host for photo exhibits, visiting speakers, film series, seminars for English teachers, and other events that promote a better understanding of American society and values. Four centers were opened in Kirovohrad, Odesa, Donetsk, and Lviv in FY 2002; centers in Sumy, Luhansk, and Simferopol will be opened in early FY 2003.
U.S. Department of State - Support for the National Endowment for Democracy (NED): In FY 2002, the Department provided $1 million in FSA funding to NED to supplement its grant-making activities in Ukraine. Think tanks received funding from NED to develop democratic policy alternatives in the areas of domestic policy, foreign policy, and the integration of Crimean Tatars into Ukrainian society and politics. Other recipients of NED grants distributed in-depth political analyses to regional newspapers, worked to defend the rights of various segments of the population (including women), and arranged internships for university students in the national legislature, the Verkhovna Rada.
Economic Development Programs
USAID Support for Small and Medium-Sized Enterprises (SMEs): In FY 2002, USAID continued to develop Ukraine's SME sector through programs focusing on policy reform, business advocacy and association development, provision of micro-credit, and management education and training. USAID's support for microcredit, offered through the Micro Finance Bank (MFB) and five commercial banks, has provided 22,328 loans for over $165 million, with 86% of these loans under $10,000. The average loan amount is $4,403. One of these banks, the MFB, currently has 11 branch offices throughout Ukraine, and it has made over $43 million in loans, with an average loan size of about $4,500. Provision of this kind of credit is fundamental to the creation of new SMEs and expansion of existing small businesses. BizPro, USAID's centerpiece SME program, serves 20,000 SMEs through associations, handles 5,000 phone calls a month on its hotlines and trains 1,000 entrepreneurs every month. As a result of this assistance, 22% of BizPro participants report an increase in profits while 11% report an increase in number of employees. In 2002, BizPro launched a regulatory reform component that is now operational in 32 cities in 8 oblasts. In 2002, BizPro also introduced the One-Stop-Shop concept in three cities, an approach the GOU has indicated it is ready to adopt nationwide. In business education, as a result of USAID support, the Consortium for Enhancement of Ukrainian Management Education (CEUME) has trained over 4,000 faculty and administrators in management education. As a result, CEUME-trained professors have taught over 300,000 students and developed 150 case studies for use in interactive teaching sessions. Also with USAID support, Junior Achievement (JA) is providing education in economics to Ukrainian students at 231 secondary schools and nearly 12,000 high school students are studying applied economics and receiving hands-on experience in business management through computer-simulated training exercises.
USAID Macroeconomic and Fiscal Reform Programs: In FY 2002, USAID advice and technical assistance enabled members of the Ukrainian Parliament to improve their understanding of the economic, tax and budget implications of the government's policies. USAID-funded programs introduced over 4,500 local budget officials to the central concepts of the budget code, thereby promoting decentralization of government authority. In FY 2002, USAID helped introduce program budgeting to selected ministries. Program budgeting will be expanded in the central government's 2003 national budget, with full coverage for all ministries planned for the 2004 budget. USAID assistance also expanded the capacity of the recently established Tax Policy Department in the Ministry of Finance. The new department took the lead in developing tax reform legislation and the draft Tax Code. Assistance to the Ministry of Economy helped build it to perform better macroeconomic analysis and forecasting. The USAID-funded advisor working at the State Tax Administration (STA), together with the U.S. Treasury advisors, helped the STA to begin implementing its modernization effort.
U.S. Securities and Exchanges Commission (SEC): In April 2002, the SEC provided information requested by the Ukrainian Securities and Stock Market State Commission on U.S. practices for licensing of market participants.
USAID Banking Reform Programs: USAID has continued its efforts to strengthen Ukraine's banking system, which evidenced significant improvement in 2002. Lending as a percent of banking business increased by 17.3% in the first half of 2002, and it became more diversified. Commercial bank profits increased by 63% to $51.8 million. The National Bank of Ukraine (NBU) policy of lowering monetary reserves requirements and supporting a stable exchange rate led to greater long-term lending (one year or longer). However, over 80% of lending are still short-term. While deposits have tripled over the past two years, they still represent a mere 12.6% of GDP - the lowest such ratio among the Eurasian countries. This reflects the public's continued mistrust of the banking system. USAID, through its Banking Supervision project, is helping to build confidence in the banking system by establishing stronger risk-based management practices. The project improved supervision capacity at the National Bank by providing training in off-site analysis, on-site inspection and problem bank resolution. This training has resulted in the full adoption of risk-based management principles by the NBU, which now requires their implementation by all commercial banks. The project has shifted its capacity-building efforts to commercial banks, so that they may comply with the risk-based management regulations. In 2002, USAID assisted the NBU to improve compliance with Basle Core Principles of Banking Supervision. As a result, Ukraine showed significant improvement in the recent IMF compliance assessment.
USAID Commercial Law Programs: In FY 2002, the USAID-funded Commercial Law Center provided assistance to the Parliament and government ministries to improve major commercial legislation, including the Civil Code, which will assure the enforcement of contracts. The Code will have a dramatic impact on transactions throughout society, and it will provide the basis for personal freedom, ownership of land and property, intellectual property rights, debtor-creditor relations, and strengthen the values of corporate governance and entrepreneurship. The USAID-funded Commercial Law Center is also providing training to commercial law professionals in the areas of arbitration, mediation, bankruptcy, enforcement of judgments, and legislative drafting, as well as public outreach and advocacy on commercial law reform. The Center provided assistance to draft amendments to the Bankruptcy Law that became effective on July 14, 2002. The amendments add and strengthen provisions that clarify enterprise restructuring procedures and solvency restoration and eliminate procedural inconsistencies that hinder its enforcement. In 2002, the Commercial Law Center assisted the Parliament and Ukrainian Mortgage Association to prepare the Law on Mortgages for the second parliamentary review. This new law will establish private mortgage institutions and mortgage market intermediaries. The Center is helping to strengthen the enforcement of contracts and court judgments. This includes amendments to the current enforcement legislation, reform of the system for court-ordered sale of assets, and development of alternative dispute resolution mechanisms
USAID Agricultural Reform Programs: In FY 2002, the Ukrainian Government continued to put forward significant policy initiatives, while at the same time deepening those it put forward in 2001. By the end of 2002, the number of land titles issued increased to 2.7 million, from 1.5 million in 2001, although four million titles have yet to be issued. USAID assistance was directly instrumental is laying the administrative and policy groundwork that led to the issuance of these titles. USAID has helped develop a grassroots demand by private citizens for land titles, greater transparency in the titling process, less corruption and lower titling costs. Ukraine's agricultural production increased by nine percent in 2002. The Louisiana State University extension program has trained farmers in Vinnytsya, Khmelnitsky and Turkeys in improved production technologies. Significant policy initiatives in 2002, largely developed and encouraged by USAID's Policy Reform project, included passage of enabling legislation for a grain warehouse receipt system, introduction of legislation to establish a national extension service, and adoption of regulations which created a commercial crop insurance program. Trade negotiations were positively impacted by the policy project, which pushed through legislative amendments that lowered export tariffs on sunflower seeds, developed regulations that enabled the GOU to begin refunding VAT to agricultural commodity exporters, and pushed forward the WTO agricultural ascension negotiations. USAID plans to continue its program of support for structural reforms in land titling and agricultural policy. USAID initiated an agricultural credit program through the Development Credit Authority to encourage the availability of credit to newly titled small farmers and producers.
USAID Farmer-to-Farmer (FTF) Program: Twenty-two out of 47 volunteers were assigned to farmer associations and/or cooperatives. FTF volunteers contributed to the development of new markets for farm production in four oblasts, improved farm credit training programs at the National Association of Credit Unions, and strengthened member services at seven farm associations. As a result of USAID programs, 836 recipients' lives were considerably improved.
U.S. Department of Treasury - Technical Advisors: The Treasury Department completed a program of assisting in budget and policy management in 2002, which put in place full-scale program budgeting management.
Peace Corps - Business Development Programs: The 30 Peace Corps Volunteers (PCVs) were assigned to Ukrainian colleges and Universities where they taught marketing, management, economics, and accounting and finance and investment management. Additionally, business volunteers worked with their colleagues to develop new curricula and assist in the development of distance learning programs with British and American universities. 45 PCVs worked with NGOs, business associations and local government administrations where they transferred their practical knowledge and skills in business management. Volunteers helped local government officials design town hall meetings, develop strategies to improve government efficiency and provided guidance to city-owned enterprises in an effort to make them more attractive to outside investors. PCVs made significant contributions to the development of non-profit associations and organizations, especially in the areas of fund raising and small business management.
U.S. Department of Labor (DOL): During FY 2002, DOL funded programs in four areas in Ukraine: mine safety, HIV/AIDS, employment services, and labor rights. The mine safety program worked to reduce the number and severity of methane and coal dust explosions in Ukraine's coal mines. The program included the provision of "rock dusting" machines to reduce airborne combustible coal dust, as well mine-safety training for Ministry of Labour and Social Policy (MOLSP) staff mine-safety inspectors from the Donetsk and Luhansk regions. Organizational changes and mine safety regulations adopted during 2002 at the national and regional levels of the Ukrainian Department of Labor Safety were modelled on U.S. regulations. DOL HIV/AIDS efforts focused on worker education for prevention and non-discrimination, working with MOLSP, employers, and unions. DOL also worked with local institutions to develop a cadre of trainers who provide technical assistance to companies on workplace prevention programs. The Worker Adjustment Project helped the MOLSP strengthen the capacity of the National Employment Service, including training 256 vocational counselors, to provide services to the unemployed, job seekers, and communities impacted by mass layoffs due to economic restructuring. The project worked with 11 government employment centers, including providing them with new equipment, to improve services for unemployed workers, as well as promoting local economic development projects in the communities of Gorlovka and Slavutych. The Labor Rights component of DOL assistance supported an International Labor Organization project on labor law reform; the enforcement of labor inspection; collective bargaining and dispute settlement; and non-discrimination and improving women's access to legal information. The project included a wide range of workshops and monitoring.
Trade and Investment Programs
Export-Import (Ex-Im) Bank: In FY 2002, Ex-Im Bank re-opened in Ukraine for support for short and medium-term financing, in the public and private sector. This positive step, although no transactions took place in 2002, was due to the resolution by the Ukrainian Government of its sovereign defaults through the Paris Club.
U.S. Trade and Development Agency (TDA): TDA continued its FY 2001 feasibility study on the infrastructure for Kharkiv district heating into FY 2002. It also provided two grants to the Government of Ukraine on the Odesa-Brody pipeline projects: $125,000 for the review and update of the Gulf Interstate Feasibility Study; and $200,000 to engage a strategic business advisor to assist the Government of Ukraine with strategic planning, investment, and negotiations involving the pipeline. TDA organized the Travel and Tourism conference in Istanbul in May 2002, and assisted with a GKS and Travel and Tourism Pavilion in Crimea in February. TDA undertook a definitional study on Regional Air Traffic Control and a desk study on the Gostomel air cargo development.
U.S. Department of Commerce - Business Information Service for the NIS (BISNIS): During FY 2002, BISNIS together with FCS organized three US product literature centers at major Ukrainian trade shows. These activities led to several export successes for U.S. firms. BISNIS programs help find investors and advise on best business practices. BISNIS helps identify appropriate attendees at events targeted on good corporate governance, Internet usage, GAAP training, financial sector development, and SME development. BISNIS, FCS and USAID, organized a one-day business development seminar for 120 SMEs in Kharkiv; it also participated in a business development seminar in Odesa. BISNIS and FCS organized three U.S. produce literature centers at major Ukrainian trade shows. In FY 2002, the BISNIS "Search for Partners" Program processed 123 lead applications and published 18 leads for Ukraine. BISNIS also published 22 trade-opportunity leads.
U.S. Department of Commerce - Commercial Law Development Program (CLDP): In FY 2002, a CLDP resident advisor worked in Kiev to advance Ukraine's accession to the World Trade Organization (WTO). The advisor helped the Ukrainian Government to prepare laws harmonized with WTO requirements. This activity included preparing and amending laws on the protection of intellectual property rights and other legislative priorities. The CLDP advisor worked closely with the Ministry of the Economy to prepare documents to be submitted to the WTO, and to bring Ukrainian laws, regulations, and practices into compliance with WTO standards. The program is broadening its approach to include assistance to the Parliament, and ensuring effective implementation of WTO-compliant laws by the government. CLDP'S program on the protection of IPR identified inconsistencies between Ukraine legislation and the TRIPS Agreement. Based on this analysis, an IPR omnibus bill was drafted and was under consideration by the Rada at year's end.
Western NIS Enterprise Fund (WNISEF): Since its establishment in 1994, WNISEF has invested over $79 million in 24 Ukrainian companies. This investment provides employment to over 11,000 employees. The Fund provides the capital and management tools that are required for small entrepreneurial ventures to expand into professionally managed companies. The majority of the companies in the WNISEF portfolio continue to increase their market share (volumes) and revenues. This reflects the Fund's hands-on approach to working in partnership with owners and managers to implement effective corporate governance, transparency of operations and finance, as well as to create value in areas such as marketing, sales, financial and strategic management. WNISEF's investments cover a broad range of sectors, including food processing, agriculture, construction materials, packaging, distribution, light manufacturing, services, Internet and technology, and various financial institutions. WNISEF also operates a Small Business Loan Fund which makes $10,000 to $100,000 sized loans, which by March 31, 2000 had committed $3,843,000 in credit to 67 small businesses operating within a 200-kilometer radius of Kiev, Kharkiv, and Lviv. These businesses employ 2,000 people in ten different oblasts. WNISEF has joined forces with other investors to form a new financial institution for SMEs; a new bank was created by EBRD, IFC, KFW (German assistance agency), and WNISEF, which accelerates loans disbursements but reduces risk and exposure to the founders.
Overseas Private Investment Corporation (OPIC): OPIC did not to providing any new loans in Ukraine in FY 2002.
Energy and Environment Programs
U.S. Department of Energy (DOE) - International Nuclear Safety Program: DOE's nuclear safety program supports critical improvements in nuclear safety at all nuclear power plants in Ukraine. Activities in emergency management cooperation provide technical assistance to prevent nuclear incidents and accidents, and mitigate the consequences of possible incidents/accidents. Full-scope simulators provide invaluable hands-on training for reactor operators on all aspects of operations: normal, abnormal and emergency. Two new simulators were recently completed in FY 2002 at Rivne Unit 2 and Zaporizhzhya Unit 1 for a total of seven simulators at Ukraine's 13 nuclear reactors. In-depth safety assessments form the basis for establishing nuclear safety for operating nuclear reactors. Assessments are being completed for Zaporizhzhya Unit 5, South Ukraine Unit 1, and Rivne Unit 1. These assessments use internationally acceptable methods and standards to prioritize future safety improvements and support nuclear regulatory oversight in Ukraine. The results obtained in 2002 indicate that the lack of effective emergency operating instructions (EOIs) is the most important and urgent safety deficiency for Ukrainian reactors. The programs will be re-prioritized to address this problem. Safety parameter display systems provide reactor operators with immediate critical information on reactor conditions during malfunctions or accidents. With the completion of a multi-system display at the Zaporizhzhya site, all nuclear reactors in Ukraine now have this capability. Nuclear reactor security is more crucial than ever in the face of potential terrorist activity. Ukraine has substantial weaknesses in interior detection, assessment and alarm systems and procedures; interior physical barriers; and communications. Upgrades were completed at Khmelnytskyy Unit 1 and the Zaporizhzhya site as a first step to eliminate security vulnerabilities. Operational safety and maintenance FY 2002 activities focused on ensuring the integrity of reactor coolant piping and steam generators through the completion of a in-country facility to fabricate steam generator inspection probes, providing basic maintenance equipment and an emphasis on symptom-oriented emergency procedures. DOE supported the development of a dossier of financial and technical proposals in order to improve Ukraine's ability to tap international lending institutions for loans to implement capacity factor improvements. Emergency management response DOE completed all the preliminary work to establish an effective emergency response communications, notification and display network throughout Ukraine to permit all nuclear power plants in the country to communicate directly with the Kiev Emergency Response Center in the event of a nuclear incident. Under the Ukraine nuclear fuel qualification project DOE supported on-going training of Ukrainian specialists with Westinghouse to establish an in-country technical capability to analyze, test, qualify and regulate nuclear fuels. A Westinghouse dummy fuel assembly was loaded into the South Ukraine Unit 3 nuclear reactor to generate fuel handling operations information. Chornobyl shutdown and decommissioning activities at the Chernobyl Center and its laboratories include the close cooperation of specialists from Ukraine and the U.S. in technical, ecological, and socioeconomic issues relating to the December 15, 2000 closure of the Chernobyl nuclear power plant. Procurement and delivery of spare parts for the Chernobyl Replacement Heat Plant was completed in FY 2002; one of the first decommissioning support facilities completed at the Chernobyl site through international assistance.
USAID Energy-Sector Programs: In FY 2002, USAID's energy sector programs focused on privatization of Ukraine's electricity distribution companies (oblenergos), energy sector debt restructuring, and wholesale electric market (WEM) reform. After the successful privatization of six oblenergos in the spring of 2001, the Prime Minister of Ukraine was replaced and progress has stalled in privatization despite World Bank policy conditionality and USAID technical assistance. Accumulated debt has become a major obstacle to privatization, and has contributed to the asset stripping of three energy companies. The good news in the energy sector, in part due to USAID efforts, is that cash payments to the WEM are up to 85%, from 68% in 2001. The National Energy Regulatory Commission (NERC) has begun to demonstrate independence. Through open public hearings, it considered applications from newly privatized oblenergos for tariff increases. The tariff increases, which provide for a 17% return on capital investment, were approved by NERC in the fall of 2001. The NERC also led the effort to develop a new concept for the functioning of the WEM. It provides for bilateral contracts and a market (to balance surplus and deficiencies in selling and buying) to be implemented over a five-year period. In related developments, in November 2001, President Kuchma rejected a European Bank for Reconstruction and Development (EBRD)-proposed loan package to complete the construction of nuclear plants in Khmelnytskyy and Rivne because of Ukraine's unwillingness to meet EBRD's conditions. The failed loan package and lack of progress in privatization have broad negative implications for nuclear safety and overall reform in the energy sector in Ukraine.
U.S. Nuclear Regulatory Commission (NRC): In FY 2002, the NRC provided training to the Ukrainian Nuclear Regulatory Authority and its technical service branch in nuclear power plant licensing, emergency planning and preparedness, inspection techniques, and nuclear power plant decommissioning. NRC experts participated in the completion of a comprehensive assessment of the State Nuclear Regulatory Committee of Ukraine sponsored by the European Bank for Reconstruction and Development. NRC reviewed draft laws on funding radioactive waste management, and liability and enforcement. These activities supported two workshops on methodology for certifying new nuclear reactor fuel designs, and review of technical and licensing documents.
USAID/U.S. Department of Energy (DOE)/Environmental Protection Agency (EPA) - Environmental Programs: In FY 2002, the U.S. Government-funded environmental activities in Ukraine continued to address environmental problems of mutual concern, such as global climate change and Chernobyl. It also assisted Ukraine to tackle some of its most challenging environmental problems at the national, regional and local level such as flooding in the Tisa River basin and pollution in the Dnipro estuary and Black Sea. EPA launched an environmental capacity building program to strengthen environmental management in the Ministry of Ecology and Natural Resources (MENR) in the area of risk assessment, cost-benefit analysis, and environmental finance. An initial workshop was held, with participants from the national MENR, Ministries of Finance and Health, and 25 regional representatives of the MENR. USAID launched the Local Environmental Action Program (LEAP) in seven Ukrainian communities, stakeholder groups were formed in each demonstration community, four centers of excellence were established, grants were awarded to eight local NGOs and more than 200 citizens were trained. USAID support for the Ukrainian Land and Resources Management Center (ULRMC) has developed Ukrainian capacity to use Geographic Information Systems and remote sensing for environmental decision-making. The Ukrainians have applied these technologies to the management of Carpathian forest resources, biodiversity in the Azov Sea/Black Sea Corridor, flooding and fires in the Chernobyl Exclusion Zone, land privatization, and flooding in the Tisa River basin. USAID is funding the installation of six satellite-transmitting stream-gauging stations on the Tisa River. The USAID Climate Change Initiative (CCI) has helped Ukraine to meet its commitments under the United Nations Framework Convention on Climate Change (UNFCCC) and to develop investment projects for the mitigation of greenhouse gases (GHG). As a result of USAID interventions, the CCI assisted Ukraine in conducting the GHG inventory for the power sector, aluminum industry, and transport sector. The CCI organized an international investment conference in Kiev and developed business plans for GHG mitigation at two industrial facilities, one municipal water canal and for carbon sequestration in the forest sector. The USAID EcoLinks program awarded eleven challenge grants worth more than $550,000 to municipalities and businesses to stimulate investment in environmental technologies in such areas as energy efficiency, water treatment, and wastewater treatment. Over $1 million in public and private environmental investment resulted from two EcoLinks grants for district heating in Odesa and wastewater treatment in Uman. USAID, in cooperation with the Academy for Educational Development, conducted six regional workshops, a study tour on sustainable development and supported the participation of Ukrainian NGOs at the World Summit on Sustainable Development.
Peace Corps - Environmental Activities: In FY 2002, 25 Environmental Peace Corps Volunteers (PCVs) assisted educational institutions, governmental agencies and NGOs in developing project proposals and fund raising for environmental education and awareness activities. More than 200 Ukrainian partners improved their skills and developed new knowledge about project development, the creation of resource centers, and management and Internet and web design. PCVs initiated or participated in projects aimed at raising awareness and public participation in environmental activities such as Earth Day, adventure tourism and clean up activities. More than 50 teachers and environmental activists improved their organizational skills as a result of participating in these projects.
Social-Sector Programs
USAID Health Programs: In FY 2002, USAID provided critically-needed assistance, professional training and information exchange to improve the quality of health care services and reduce health risks. Support to the WHO ensured effective diagnosis and treatment of tuberculosis in the Donetsk region and assistance provided to NGOs increased HIV-related preventive activities among high-risk groups (intravenous drug-users, commercial sex workers, and sexual minorities). USAID/Kiev is also continuing birth defects (BD) surveillance for the identification of priority BD issues and elaboration of targeted preventive interventions to decrease childhood morbidity and mortality. In FY 2002, USAID also developed and funded an important new health activity: a maternal and infant health program to complement ongoing efforts in reproductive health policy, to build upon previous achievements of women's and child health programs, and to encompass up-to-date safe motherhood approaches. The program will be in four oblasts, based on geographic dispersion, progressive health administrations, and where USAID has had other health programs. In addition, in FY 2002, USAID awarded a new primary health care initiative for implementation by the World Council of Hellenes to improve and increase access to primary health care services in Mariupol and its surrounding region. The USAID-sponsored component of the program specifically focuses on education and prevention regarding HIV/AIDS and cardiovascular diseases.
USAID Pilot Initiative to Prevent HIV Transmission from Mother to Newborn: Ukraine has one of the highest rates of new HIV infection in the world. In 2001, USAID initiated a regional pilot activity in Odesa Oblast to reduce transmission of HIV from mothers to newborn children and to healthcare workers, and to create a sustainable model adaptable to other cities and countries in the Eurasian region. Implementing partners include the Medical University Hospital, the Women's Wellness Center, and the AIDS Center, all in Odesa, and Community Hospital in Boulder, Colorado, the University of Colorado Medical School, Medicins sans Frontieres, UNAIDS, and UNICEF. As a result of this activity, the Odesa Oblast Health Administration issued a decree requiring that HIV-positive pregnant women who present at area clinics and hospitals be routed directly to the Odesa Oblast Hospital for all pre- and post-natal care and treatment to prevent HIV/AIDS transmission. Preliminary project results for the pilot site through FY 2002, show a 50-percent decrease in the mother-to-child transmission rate owing to various factors, including early detection of HIV-positive status, increase in delivery by caesarian section, and administration of anti-retroviral (ARV) therapy to both mother and child. The comprehensive partnership model also has produced survey tools, reference documents, a clinical training curriculum, and monitoring/evaluation protocols that can be applicable to other mother-to-child-transmission activities in the Eurasian countries.
USAID Pension Reform Programs: In FY 2002, USAID continued helping the Government of Ukraine develop pension reform legislation. Two major draft laws were revised by the Government and approved by the Parliament in the first reading in November 2001. Bylaws associated with the passage of the Law on "Non-banking financial services" have been drafted. USAID also provided technical assistance to the Pension Fund of Ukraine (administrator of the public pension system) to improve its capacity to collect payroll contributions. An optical scanning system, to allow scanning of handwritten, annual employer contribution records and the production of social insurance (SI) certificates, has been developed. As a result of this system, over 2 million SI certificates were issued by 30 September 2002. With USAID assistance the Ukrainian Government designed procedures on unified data collection for all four public social insurance programs developed by the Cabinet of Ministers of Ukraine. In 2002, USAID conducted 59 central and regional training and public education seminars and workshops in which a total of 3,200 people participated including central and local government officials, parliamentarians, trade unions, employers, and journalists. Real pension benefits increased during FY 2002 by 15 percent and were paid on time.
Security, Regional Stability and Law Enforcement Programs
U.S. Department of Defense (DoD) - Cooperative Threat Reduction (CTR) Program: In FY 2002, the U.S. DOD continued Cooperative Threat Reduction efforts with Ukraine to eliminate the SS-24 missile system and to eliminate remaining Tu-95 and Tu-160 heavy bombers and their associated air launched cruise missiles. A new program was initiated to dismantle an initial set of Tu-22 bombers and associated Kh-22 air to surface missiles and a former nuclear weapons storage depot near Raduga. Funding for CTR assistance through 2002 reached $709 million since 1992. FY 2002 highlights include the following:
U.S. Department of Defense (DoD) - Cooperative Threat Reduction/Defense and Military Contacts: Some 35 CTR-funded Defense and military contacts took place in 2002 with Ukraine, focused on promoting reform and developing interoperability within Ukraine's armed forces. This was a significant reduction from the previous year due to postponements caused by the new priorities under the Global War on Terrorism and deliberate efforts by the U.S. and Ukraine sides to focus on quality rather than quantity. Contacts included bilateral defense consultations with Ukraine's Ministry of Defense (MOD), Joint Staff talks, trilateral meetings with Polish military representatives, exchanges on NCO Corps development, military education reform, and peace support operations. U.S. travelling contact team and Ukrainian familiarization trips focused on administrative and operational issues. The State Partnership Program with the California National Guard sponsored dozens of military-to-military and civilian-military contacts and seminars on a variety of topics. CTR funded the Combined Defense Analysis conducted by U.S. European Command and the Ukrainian MOD's rapid reaction forces, which will be used to prioritize U.S. assistance toward developing these units as the primary NATO-interoperable elements of the Ukrainian armed forces.
U.S. Department of Defense (DoD) - Defense Enterprise Fund (DEF): While no Defense Department funding has been appropriated for the DEF since FY 1995, and no State Department funding since FY 1997, the DEF's investments have contributed to transformation efforts in the former Soviet military industrial complex. The DEF has expended the bulk of their available funds and are not making new investments at this time. In Ukraine, although the DEF had committed to invest up to $2.5 million in Liform, a venture to reclaim a large, low-cost supply of scrap aluminum, brass and other metals from military hardware for resale on the world market, this investment turned out not to be viable and the planned investments were stopped short of the anticipated amount.
U.S. Department of Defense - Traditional CINC Activity Funding: In FY 2002, TCA funded two exchange visits between the U.S. Army Europe's Southern European Task Force Brigade and the Ukrainian 95th Separate Airmobile Brigade, the main ground forces component of Ukraine's rapid reaction force. These exchanges established the groundwork for a partnership between the brigades to be developed through the 2003 Partnership for Peace (PfP) exercise Peace Shield.
U.S. Department of Defense - Warsaw Initiative / Partnership for Peace (PfP): In FY 2002, about $1.2 million in Warsaw Initiative Funds (WIF) facilitated Ukraine's participation in Partnership for Peace (PfP) activities that enhance the Ukrainian armed forces interoperability with NATO militaries. Ukraine hosted the NATO PfP exercise Cooperative Adventure Exchange 2002 at the Yaroviv Training Area with over 2,500 troops from 17 countries. Ukraine participated in the planning of PfP exercise Cooperative Partner in the Black Sea, in ISO-PfP Sea Breeze 2002 in the Mediterranean Sea, and in PfP Combined Endeavor. WIF enabled Ukraine's ministries of Defense, Emergency Situations, Interior and Foreign Affairs to participate in dozen of smaller scale individual Partnership Plan activities oriented toward helping Ukraine achieve its defense reform program objectives. WIF funded the participation of 29 officers in Marshall Center courses on national security affairs, which facilitated dialogues and contacts with participants from other North American, European and Eurasian militaries. WIF funded attendance of 50 Ukrainian officials at ten conferences and seminars sponsored by the Marshall Center on developing national security structures based on democratic principles.
U.S. Department of State - Foreign Military Financing (FMF) Program: In FY 2002 Ukraine received $4 million in FMF funds to enhance Ukraine's interoperability with U.S./NATO in peacekeeping and other humanitarian operations. Ukraine used FMF funds in FY 2002 to purchase automation and simulation equipment to support new curricula for staff officer development at the National Defense Academy; to purchase additional military tactical radios and communications systems; to help develop a simulation center to support peacekeeper training; to purchase computers for its Recruiting and Mobilization Directorate; and to fund several Mobile Training Team events.
U.S. Department of State - International Military Education and Training (IMET) Program: In FY 2002, the U.S. Government provided Ukraine with $1.7 million in IMET funds for training Ukrainian military and defense-associated personnel. IMET training supports an ongoing effort to improve interoperability between Ukrainian and U.S./NATO militaries, and to promote transformation and restructuring within the Ukrainian Armed Forces, by providing opportunities for select Ukrainian officials to attend U.S. military and educational institutions. In FY 2002, IMET funded the participation of 58 Ukrainians in U.S.-based courses and approximately 250 officials in mobile training programs in Ukraine. In addition, the expanded IMET (E-IMET) Program provided training for Ukrainian military and civilian officials, including personnel from non-defense ministries and the legislative branch, on defense budget management, creating an effective military justice system and moving to civilian control of the military.
U.S. Department of State - Peacekeeping Operations: Support for Ukrainian involvement in Kosovo Peacekeeping Forces (KFOR) - The Department of State reprogrammed $1 million in peacekeeping operations (PKO) funds in FY 2002 to support continued Ukrainian participation in the Polish-Ukrainian Battalion (UKRPOLBAT) conducting peacekeeping support operations within the U.S. sector of responsibility in Kosovo. In addition to making significant contributions to the KFOR mission, Ukrainian troops are gaining valuable experience by learning NATO professional standards while operating as part of a multinational force. USG funds are authorized to cover only food, fuel, and lodging costs. The Ukrainian Defense Ministry covers the balance of the forces operating costs. DOD has urged Ukraine to pick up all financial obligations for its deployed forces, but as this is an open-ended Mission, Ukraine will likely continue to appeal for U.S. assistance. U.S. Department of State - Export Control and Related Border Security (EXBS) Program: In FY 2002, the State Department allocated a total of $2.8 million in FREEDOM Support Act (FSA) and Nonproliferation, Antiterrorism, Demining and Related Activities (NADR) funds for EXBS assistance for Ukraine. U.S. Government EXBS efforts in Ukraine were stalled for over a year, but resumed on signature of a bilateral Export Control Implementing Agreement under the Cooperative Threat Reduction (CTR) Program umbrella agreement in Kiev on October 22, 2001. Ukraine has made progress in developing an export control infrastructure, regulations and procedures, but still lacks a transparent, comprehensive export control law and consistent and effective enforcement. The Government of Ukraine (with EXBS assistance) drafted a comprehensive export control bill and had told the USG that it was a high legislative priority for adoption by the end of 2001. As of November, however, the Rada had not passed the bill although it was due for a second reading by the end of November 2002. EXBS efforts engaged the Government of Ukraine in export control policy talks, specifically to encourage responsible transfer policies, and to encourage passage of this export control law. EXBS efforts in Ukraine remain focused on generating the political will to promote ratification and enforcement of the export control law. EXBS assistance is increasingly focused on enforcement - working with the Ukraine Border Guard, State Customs Service, and State Service for Export Control on provision of equipment and training for enforcement officials. In FY 2002, the EXBS program focused efforts on bolstering enforcement capabilities on Ukraine's Western border through outfitting and training of two 200-person Mobile Response Teams capable of patrolling the vulnerable "green borders" between border points of entry, contributing contraband detection "Buster" kits with associated training to Customs and Border Guard officials, and initiating negotiations for the installation of specialized radiation detection equipment to border sites in Ukraine through DOE's Second Line of Defense Program.
U.S. Department of State - Science Centers/Other Nonproliferation Programs: Ukraine is a founding member of the Science and Technology Center in Ukraine (STCU), and is its biggest beneficiary of research grants. The Department of State funded $5 million in civilian research undertaken by Ukrainian scientists in FY 2002. The research, conducted mostly in the Kiev and Kharkiv areas, was in the areas of materials design; sensors, devices and instrumentation; environmental monitoring and protection; nuclear safety; and basic safety. During FY 2002, STCU operations were adversely affected by the failure of the Government of Ukraine to satisfactorily resolve rent and utilities payments, which resulted in a disruption of utilities and services on several occasions. Funding for Ukraine in FY 2003 is expected to remain at the same levels.
U.S. Environmental Protection Agency - Biotechnical Redirection: In late FY 2002, EPA initiated the development of a project to alleviate the effects of the over 20,000 metric tons of obsolete pesticide stockpiles scattered throughout Ukraine. These chemical stockpiles include pesticides banned from application, those with altered properties, and mixtures of unknown composition or otherwise unidentified pesticides. Unauthorized and unsafe use by farmers and the general public of obsolete pesticides, lack of monitoring and government control over storage sites, and leakage's from corroded or otherwise poor storage containers, all contribute to the serious contamination of soil, ground and surface water, as well as adverse human effects in many areas of Ukraine. The potential new EPA project will build upon EPA's recent Pest and Pesticides Management Project (PPMP) in Ukraine, which focused on building the capacity of Ukrainian governmental authorities to address proper pesticides registration and tracking, safe practices and disposal, and furthering linkages between the respective national ministries with the oblast plant protection stations. In FY 2002, EPA held initial discussions with the Science and Technology Center of Ukraine (Ukraine), as well as two potentially key scientific partners for the project, the Institute of Organic Chemistry (IOC) and the Bioorganic Chemistry and Petrochemistry Institute. In early FY 2003, EPA will finalize the detailed project workplan, which will incorporate relevant recommendations of the Ukrainian "National Plan for the Elimination of Obsolete Pesticides". The project is expected to include components to address gaps in the existing obsolete pesticides inventory work, including analyses and characterization of existing stockpiles; supporting a database on obsolete pesticides; examination of appropriate technology for destruction; options for better containment; capacity building of Ukrainian national government authorities and plant protection station managers; training and awareness for local communities on safety and hazards of obsolete pesticides; and pilot demonstration activities for disposal and destruction.
U.S. Department of State - Support for the Civilian Research and Development Foundation (CRDF): In FY 2002, the CRDF activated 31 new Cooperative Grants Program awards to Ukrainian scientists, totaling $1.86 million. In addition, in FY 2002 CRDF received 39 proposals from Ukraine-U.S. research teams in response to the Special Competition for Research on Minimizing the Effects of Terrorist Acts on Civilian Populations. Many of these included scientists with WMD expertise. Ukrainian scientists continued to take full advantage of the CRDF's commercialization programs. In FY 2002, there were 23 Travel Grant awardees and five new Next Steps to Market Program awards going to Ukrainian research teams.
U.S. Department of Energy (DOE) - Nuclear Material Protection, Control & Accounting (MPC&A) Program: DOE/NNSA's Material Protection Control and Accounting Program is providing support to 8 Ukrainian nuclear facilities to upgrade safeguards in accordance with IAEA's 1999 revised guidelines. DOE assisted in completing prior upgrades from 1996-1999 to meet IAEA's earlier standards.
U.S. Department of Energy - International Nuclear Export Control Program: INECP provides support to the State Department's Export Control and Border Security Program's (EXBS) nonproliferation goals by focusing resources on cooperative projects in the three themes that guide its domestic program: licensing, industry outreach, and enforcement. In Ukraine, INECP provided support to licensing activities for both of the country's premier nuclear institutes—the Institute for Nuclear Research (INR) and the Kharkiv Institute of Physics and Technology (KIPT). Support for the Nuclear Export License Review System (NELRS), a computer-based system designed to facilitate the technical review of license applications, is ongoing. A second automated system, the SSECU departmental database, was also developed with INECP support. This database is used by the Nuclear Item Review Department of SSECU to review past licenses and access reference materials. Support for both will continue in FY 2003. In Industry Outreach, American experts joined with representatives of INR and KIPT, as well as Ukraine's State Service for Export Control and the Science and Technology Center (STC) in providing presentations on technology transfers and technology security, commodity classification, and internal compliance for the nuclear industry in Ukraine in March and June workshops. In the area of enforcement, the George Kuzmycz Training Center completed the first step of developing a training course for the State Customs Service of Ukraine (SCSU) by completing a curriculum deliverable accepted by SCSU. The Kuzmycz Center, it was agreed, will develop the training courses and begin training SCSU in FY 2003.
U.S. Department of Energy (DOE) - Initiatives for Proliferation Prevention (IPP): The IPP Program provides meaningful, sustainable, non-weapons-related work for former weapons scientists, engineers, and technicians of the Newly Independent States through commercially viable market opportunities. Through the IPP Program in Ukraine, 26 institutes have been engaged and nine U.S. companies have established joint collaboration with Ukrainian scientists.
U.S. Department of Energy - Reduced Enrichment for Research and Test Reactors (RERTR): In FY 2002, the RERTR program activities continued to support testing of LEU fuel elements, which can be used for HEU to LEU conversion of reactors in Ukraine.
U.S. Department of State - Anti-Crime Training and Technical Assistance (ACTTA) Program: In FY 2002, the U.S. and Ukrainian governments continued work on the four priority areas for the "U.S.-Ukraine Program for Bilateral Cooperation for Combating Corruption and Organized Crime, 2000-2005," which was signed in June 2000: money laundering, intellectual property rights, trafficking in persons, and border security. Long-term strategies and comprehensive programs were developed to support these four priorities. An INL letter of agreement between the U.S. and Ukrainian Governments on law enforcement assistance, which outlines law enforcement assistance projects addressing the four priority areas, has been agreed and is scheduled for signature in early FY 2003. US agencies, including experts from the Treasury and Justice Departments, have been working closely with senior Ukrainian Government officials to develop an anti-money-laundering law and regulatory framework that meets international standards, and Ukrainian officials have participated in international anti-money-laundering conferences. Although the Verkhovna Rada (Parliament) has not yet adopted an anti-money-laundering law, a financial intelligence unit was established in the Ministry of Finance. The unit administers a system of mandatory reporting of suspicious financial transactions, pursuant to a presidential decree signed in December 2001 and a Cabinet of Ministers resolution adopted in January 2002. The Ukrainian Government had earlier criminalized money laundering in the Criminal Code that went into effect September 1, 2001. Programs to combat trafficking in persons have also been supported and extended through FY 2003, and US funding has supported the establishment of a migration management system at the border between Ukraine and Moldova. Programs anticipated for FY 2003 include continuing to work with NGOs to counter the trafficking of persons in Ukraine and expanding the migration management system to additional borders.
U.S. Department of State - Bureau of Population, Refugees and Migration (PRM) - Support for IOM Anti-Trafficking Activities: In FY 2002, through the International Organization for Migration (IOM), PRM provided support for a shelter for returned trafficking victims in Ukraine. The shelter is providing limited reintegration assistance, medical care and counseling.
U.S. Department of Justice -- Overseas Prosecutorial Development Assistance and Training (OPDAT): In FY 2002, OPDAT provided a grant to the American Bar Association Central European and Eurasian Law Initiative (ABA/CEELI) to focus on anti-corruption, anti-trafficking, prosecutor training, witness protection, judicial reform and criminal procedure reform. A number of regional conferences were held to increase cooperation with local judges, prosecutors and defense lawyers, and to assist in the development of a witness protection program especially for anti-trafficking cases. The DOJ/CEELI program worked closely with the International Organization on Migration (IOM) and the Organization for Security and Cooperation in Europe (OSCE) to advance anti-trafficking objectives, including development of a manual of best practices for use in anti-trafficking cases. A new DOJ/CEELI Criminal Law Liaison arrived in Ukraine in June 2002. The American University's DOJ-funded Transnational Crime and Corruption Centers (TraCCC) were active in Ukraine throughout FY 2002. In cooperation with its Ukrainian partner, the Kharkiv Center for the Study of Organized Crime at the National Law Academy, TraCCC focused on issues related to economic crime and organized crime.
Humanitarian Programs
USAID Humanitarian Assistance: During FY 2002 the USAID-supported Community and Humanitarian Assistance Program (CHAP) responded to two man-made disasters: an air show accident in Lviv Oblast (Western Ukraine) and the mine accident in Donetsk Oblast (Eastern Ukraine). In 2002, as part of its regular humanitarian assistance program CHAP provided 85 forty-foot equivalent containers with humanitarian aid valued at nearly $10.8 million to 760 social service providers in Ukraine. These providers included 290 NGOs, 113 medical organizations, 285 educational organizations, and 8 disaster preparedness/emergency service providers. Together these organizations helped an estimated 1,630,000 people. The items provided included clothing, medical and dental equipment and supplies, household and commercial furnishings and appliances, textiles, food preparation and serving equipment, furniture, food, office supplies and devices, fire fighting, rescue, and safety equipment, and books.
U.S. Department of Agriculture (USDA) - Food Assistance: In FY 2002, USDA donated a total of 13,600 metric tons of commodities valued at $7.57 million to Ukraine. 8,600 metric tons of U.S. rice were donated under the Section 416(b) program to Agudath Israel America Community Services, Inc., (AIACS), a private voluntary organization, for use in agricultural and rural development projects in Ukraine. AIACS sold the rice and used the proceeds to complete the construction of an assisted living residential project for the elderly, purchase furniture and equipment, and fund the operation. Five thousand metric tons of U.S. agricultural commodities were donated under the Food for Progress program to the Global Jewish Assistance and Relief Network (GJARN), a private voluntary organization. The donated commodities include buckwheat groats, green peas, lentils, nonfat dry milk, rice, vegetable oil, wheat flour and yellow peas. GJARN implemented a six-month direct feeding program to distribute the food to vulnerable individuals in Ukraine.
U.S. Department of State - Coordinator's Office Humanitarian Assistance: In FY 2002, the Humanitarian Programs Division of the Office of the Coordinator of U.S. Assistance to Europe and Eurasia delivered $25.49 million in U.S. Defense Department excess and privately donated humanitarian commodities to Ukraine at a cost to the U.S. Government of $2.34 million. This assistance included a medical airlift in cooperation with the Children of Chernobyl Relief Fund and medical and relief supplies delivered by a number of U.S. private voluntary organizations, including World Emergency Relief, Feed the Children, Counterpart International, World Council of Hellenes, and Food for the Hungry. In addition, International Relief and Development was awarded a grant to implement a program targeting needy ethnic Tatars in the Crimean Region. The Office of the Coordinator also supported a military airlift of emergency medical and mine safety equipment in response to a mine explosion in the Donetsk region of Ukraine.
U.S. Department of Defense (DoD) - U.S. European Command (EUCOM) Humanitarian Assistance: In FY 2002 expended $300,000 to help complete the remodeling of the Odesa Burn Clinic. Concurrently the City of Odesa installed modern air conditioning and a new elevator.
Partnership Programs
USAID Health Care Partnerships: USAID's Health Partnership Program has established 18 model centers for family medicine practice, women's wellness services, and information resources in six regions in Ukraine. As a result of this USAID program, primary care services have been significantly improved in 12 model primary health and family medicine clinics and more importantly, 266 other clinics have now adopted the same health care approach without USAID funding. Family medicine providers are better trained and offer broader services that lower the number of patient referrals to more costly specialists since the clinics now have the capacity to diagnose and treat a broader variety of illnesses. In 2000, over 60 percent of patients were regularly referred to specialists for further treatment, but by FY 2002, because of USAID program, only 26 percent of patients needed to be referred. Each of these clinics has a health promotion program with a particular outreach focus: healthy lifestyles in Lviv; miner's health services in Donetsk; occupational health in Odesa; mental health in Kiev; and disease prevention programs in Uzhgorod. The Odesa clinic's program to prevent mother-to-child HIV/AIDS reduced the transmission rate from 12 percent last year to 6 percent this year. Each clinic is developing innovative strategies to add preventive clinical services to its basic ambulatory health services. The implementation of modern family medicine is gaining momentum. Family medicine clinics are actively replicated by local health administrations in pilot regions.
U.S. Department of State - University Partnerships: The Bureau of Educational and Cultural Affairs (ECA) awarded six grants for university partnerships in FY 2002, including such priority fields as agribusiness development, business and management, law and continuing education. Under current partnerships, more than 70 Ukrainian university professors and administrators traveled to the U.S. to work on developing new programs, courses and methods. Pereyaslav State Pedagogical Institute has received approval from the Ministry of Education for a new specialization in American Studies. The new specialization was developed through a partnership with Washington State University and three other Ukrainian universities. As a result of the partnership, Ukrainian faculty have incorporated both four new courses and new teaching methodologies into their classes. Results of other partnerships include creating a Distance Learning Center, which develops and delivers courses for business and non-profit organizations, as well as universities, and developing entrepreneurial and business training programs to impart skills needed in Ukraine's emerging market economy.
U.S. Department of State - Ukraine Media Partnership Program: Under a grant from the ECA Bureau, the International Research and Exchanges Board (IREX) has partnered five Ukrainian regional media outlets (three television stations and two newspapers) with media outlets in the U.S. Exchange visits concentrate on hands-on problem solving and working to improve quality of reporting and presentation, as well as improvement of management and financial viability. Ideas and recommendations from the exchange visits are already being put into place in such areas as advertising and local television news production.
Cross-Sectoral Programs
Poland-America-Ukraine Cooperative Initiative (PAUCI): Since late 1999, PAUCI, a trilateral initiative administered by Freedom House, has awarded 86 grants totaling approximately $2.6 million to Ukrainian and Polish NGOs; 38 were awarded in FY 2002 representing better proposals and strengthened grant-making capacity. With its strong focus on small and medium-sized enterprise (SME) development, in FY 2002, PAUCI facilitated Polish-Ukrainian collaboration in helping Ukrainian SMEs more successfully market products for export to Europe and creating cross-border business associations to stimulate trade investment and management capacity, and generate local income. A second PAUCI priority was local governance: Ukrainian and Polish NGOs organized internships and training materials for Ukrainian local government officials who worked in Polish local government institutions. Topics ranged from improving municipal management to involving local businesses and constituencies in local government decision-making. As a result of PAUCI, Ukrainian cities are allocating funds from their municipal budgets to continue Polish exchange programs. In PAUCI's third priority area, macro-economic reform, public officials and think tanks created 11 independent fora to debate and review Polish public administration budgetary and banking reform. PAUCI-funded radio and television programs broadcast information on Poland's reform experience to a broad segment of the population in eastern Ukraine, including case studies in regional development and macroeconomic policy. PAUCI grants funded Polish and Ukrainian NGOs to translate into Ukrainian over 30 post-1991 Polish laws and analyses on self-government, SME legislation, and European integration. In FY 2002, PAUCI Council members reviewed PAUCl's long-term goals, suggested options for future cooperation, and added European integration as a forth priority area.
Kharkiv Partnership: The Partnership promotes economic growth, job creation, and investment in the Ukrainian Oblast of Kharkiv by improving the investment climate and development of small and medium enterprises. For example, in January 2002 Governor of the Kharkiv Oblast Administration led a delegation to Ohio. The trip was organized and partially sponsored by USAID. The delegation established a multifaceted relationship between the Oblast and the State of Ohio through several trade and business cooperation agreements. As a result of the Ohio trip and the USAID-funded strategic planning program to stimulate investment in Kharkiv, in FY 2002, delegates from newly established regional development offices in ten Kharkiv municipalities formed the Association for Economic Development of Kharkiv Oblast Communities. Working with the 20 USG-funded programs in Kharkiv, the association has begun to mobilize local resources to improve the business environment in their municipalities.
USAID Anti-Trafficking Programs: The USAID-funded Trafficking Prevention Program works with Ukrainian Women's NGOs to provide job skills training, legal consulting services, and a public education campaign through Trafficking Prevention Centers, which, together with local NGOs that received grants, serviced 15,743 women through job training in FY 2002. There are currently seven centers in Ukraine, in Dnipropetrovsk, Donetsk, Kherson, Rivne, Chernivtsi and Zhytomyr. Additional activities include support for a hotline for returned victims, a victim assistance fund, and a joint project with the Education Ministry to develop a school curriculum on the trafficking issue. In FY 2002, USAID worked with a local Ukrainian production company to develop an anti-trafficking docu-drama, which has been repeatedly broadcast on different national, private and local channels. A number of international organizations have sought to use this high quality film in their countries. USAID funded a highly successful in-country summer training camp for youth. In three years, more than 250 girls and boys received leadership training, learned about women's and children's rights, defined the problem of trafficking in women, identified key agencies in Ukraine responsible for combating trafficking, increased leadership and conflict resolution skills, and got acquainted with Crisis Center activities. Some volunteered at Ukrainian NGOs working on this issue, and will continue to work in a gender school for youth, "School for Equal Opportunities" as trainers. USAID's Women Economic Empowerment (WEE) Program working in six regions of Ukraine (Kharkiv, Donetsk, Simferopil, Chernihiv, Ivano-Frankivsk, and Mykolaiv) and helping women establish and run businesses, find employment and develop business associations, also supports the anti-trafficking effort. Women who start their own businesses tend to hire other women who in turn are not as vulnerable to trafficking. In FY 2002, 1,411 women were trained through the centers, 210 businesses were opened as a result. In addition, 178 women found new employment and 600 new jobs were created. In Donetsk, where the Trafficking Prevention Program and WEE Program share a facility, the women who seek consultation or training also find out about the dangers of trafficking and how to avoid becoming victims.
Eurasia Foundation: Having re-organized the implementation of its Ukrainian program, the Eurasia Foundation resumed grant making in FY 2002, awarding 48 grants totaling approximately $639,000 to local NGOs and private enterprises. Grants were made in three areas: private enterprise development; public administration and policy reform; and citizen participation and civil society strengthening. To support community development and enhance local NGO sustainability, the Foundation awarded a grant to the Princess Ostrozhsky Foundation to conduct a training series on local fundraising, establish a program to exchange experiences among NGOs, and facilitate local charitable events. To create a more favorable environment for rural tourism, the Foundation awarded a grant to the Union for Green Rural Tourism Development to support its efforts to draft laws and regulations effecting the industry, conduct a series of training seminars for tour operators, and develop an outreach strategy that will increase public awareness of green tourism.
In addition to its grant making programs, the Foundation manages several special initiatives in Ukraine, which are designed to encourage a more rigorous small business sector, improved professional economic policy research and capacity, and a more financially independent media. The Foundation's Small Business Loan Program (SBLP), which provides capital to the private sector and intensive, hands-on training to participant bank lenders in credit analysis and collection methodology, approved 31 loans totaling approximately $1.4 million and creating some 132 jobs. Through the Economics Education and Research Consortium (EERC), which encourages professional policy research and improved economic policy-making, the Foundation continued to support a master's degree program in economics at the National University of Kiev-Mohyla Academy, which has produced 165 graduates to date. The Foundation's Media Viability Fund (MVF), which helps independent media outlets in Ukraine to receive long-term, low-interest loans and provides them with targeted technical assistance, funded the purchase of a printing press by a newspaper in Chernevitsi, conducted individually tailored on-site consultations and training on newsroom management, advertising, and financial management; and encouraged professional linkages by organizing client-to-client trips for Ukrainian managers and journalists to visit Russian counterparts.
Peace Corps Small Project Assistance (SPA) Program: In FY 2002, $90,000 was awarded to Peace Corps Volunteers (PCVs) and their communities to carry out community assistance projects. Community contributions to the projects averaged 40%. Forty percent of the grants were awarded to TEFL volunteers, 40% went to business volunteers and 20% to environmental volunteers. The grants covered such varied projects as community reclamation of parks and riverbanks, health awareness (drugs, tobacco, HIV/AIDS), youth and sports camps and programs and teacher/youth leader and civics training.
Preview of 2003 Programs
During 2002, the Office of the Coordinator of U.S. Assistance to Europe and Eurasia sponsored an interagency review of U.S. Government assistance to Ukraine. The review determined that assistance should be focused on three priority areas: the development of small and medium enterprises including agriculture; the development of civil society; and regional stability. In 2003, more assistance will be directed to these goals, with less assistance going to lower priority areas and less assistance going to central government agencies. In view of the negative political developments in FY 2002 in Ukraine, special attention will be given to projects to support civil society and media freedom. In addition, more assistance will be directed to combating the growing HIV/AIDS epidemic in Ukraine.
Under the EXBS program in FY 2003, U.S. Departments of Commerce (DOC) and Energy (DOE) will continue to work with Ukraine's State Service for Export Control (SSEC) and the Ukrainian business sector to strengthen Ukraine's export control capabilities through training programs that continue to raise awareness among private industry and government entities of their obligations under existing export control decrees and regulations. EXBS is also sponsoring a DOC initiative to develop and deploy a "Product Identification Training" software tool and materials to train and assist border guards, customs officers and other front-line export control officials to be able to identify and interdict the illicit movement of controlled dual-use goods. Additional EXBS efforts for 2003 will focus on enhancing the border infrastructure at strategic points of entry along the northern and southern borders. Ukraine's State Customs Committee is scheduled to receive a mobile gamma x-ray-imaging vehicle (VACIS) in FY 2003 for deployment among the Odesa port facilities and along the border of the Transnistria region of Moldova.
FY 2002 FUNDS BUDGETED FOR U.S. GOVERNMENT ASSISTANCE TO UKRAINE
(millions of dollars, rounded to the nearest $10,000, as of 12/31/02)
| FREEDOM SUPPORT ACT (FSA) FUNDS | |
| U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID) | |
| - Economic Restructuring |
$6.67 |
| - Private-Sector Initiatives |
$22.07 |
| - Energy-Sector Reform (includes $12m for Chornobyl Initiative via EBRD) |
$15.48 |
| - Environmental Management |
$1.64 |
| - Democratic Reform |
$13.49 |
| - Social-Sector Reform |
$8.00 |
| - Cross-Cutting/Special Initiatives |
$9.36 |
| - Eurasia Foundation |
$3.05 |
| - Enterprise Funds |
$7.00 |
| - Parking Fine Withholding |
$0.03 |
| TOTAL USAID |
$86.79 |
| TRANSFERS TO OTHER AGENCIES | |
| U.S. DEPARTMENT OF AGRICULTURE (USDA) | |
| Cochran Fellowship Program |
$0.25 |
| Faculty Exchange Program (FEP) |
$0.30 |
| TOTAL USDA |
$0.55 |
| U.S. DEPARTMENT OF COMMERCE | |
| Business Information Service for the Newly Independent States (BISNIS) |
$0.19 |
| Commercial Law Development Program (CLDP) |
$0.50 |
| Special American Business Internship Training (SABIT) Program |
$0.80 |
| TOTAL U.S. DEPARTMENT OF COMMERCE |
$1.49 |
| U.S. DEPARTMENT OF STATE | |
| Bureau of Educational & Cultural Affairs (ECA) - Public Diplomacy Exchanges |
$23.80 |
| EUR Bureau - Public Diplomacy Programs (including Democracy Commissions) |
$2.55 |
| Coordinator's Office (EUR/ACE) Humanitarian Assistance - Transp. Costs/Grants |
$1.79 |
| Export Control & Related Border Security (EXBS-FSA) [excluding Georgia BSLE] |
$2.00 |
| Bureau of Internatl. Narcotics & Law Enf. Affairs (INL) - Anti-Crime Training & Tech. Assist. |
$0.80 |
| International Information Programs (IIP) |
$0.05 |
| TOTAL U.S. DEPARTMENT OF STATE |
$30.99 |
| U.S. DEPARTMENT OF THE TREASURY - Technical Advisors |
$2.00 |
| U.S. ENVIRONMENTAL PROTECTION AGENCY (EPA) - Environmental Programs |
$1.00 |
| U.S. DEPARTMENT OF ENERGY - Nuclear Reactor Safety |
$30.00 |
| U.S. NUCLEAR REGULATORY COMMISSION (NRC) - Nuclear Reactor Safety |
$1.00 |
| U.S. DEPARTMENT OF JUSTICE - Criminal Law Assistance |
$0.50 |
| NATIONAL SCIENCE FOUNDATION / CIVILIAN R&D FOUNDATION (NSF/CRDF) |
$1.80 |
| TOTAL TRANSFERS TO OTHER AGENCIES |
$69.33 |
| TOTAL FY 2002 FSA FUNDS BUDGETED |
$156.12 |
| OTHER U.S. GOVERNMENT FUNDS (AGENCY BUDGETS) |
|
| U.S. DEPARTMENT OF AGRICULTURE (USDA) - PVO / NGO Food Distribution Programs |
$7.57 |
| U.S. DEPARTMENT OF DEFENSE (DoD) | |
| Cooperative Threat Reduction (CTR) |
$56.13 |
| Warsaw Initiative |
$0.82 |
| U.S. Central Command (CENTCOM) Humanitarian Asstistance Program - Transp. Costs | |
| TOTAL DoD |
$56.95 |
| U.S. DEPARTMENT OF ENERGY (DOE) | |
| Materials, Protection, Control & Accounting (MPC&A) |
$5.50 |
| Nonproliferation & International Security |
$2.20 |
| Nuclear Reactor Safety |
$0.20 |
| Russian Transition Initiatives (RTI) |
$1.80 |
| TOTAL DOE |
$9.70 |
| U.S. DEPARTMENT OF STATE | |
| International Military Education & Training (IMET) |
$1.70 |
| NADR / Export Control & Border Security (EXBS) |
$0.80 |
| NADR / Science Centers |
$5.00 |
| ECA Bureau - Public Diplomacy Programs (ECE Account) |
$4.10 |
| Warsaw Initiative / Foreign Military Financing (FMF) |
$4.00 |
| International Information Programs (IIP) |
$0.04 |
| Bureau of Population, Refugees and Migration (PRM) |
$0.13 |
| Peacekeeping Operations (PKO) |
$1.00 |
| TOTAL U.S. DEPARTMENT OF STATE |
$16.77 |
| USAID - Development Credit Authority (DCA) |
$0.20 |
| U.S. DEPARTMENT OF EDUCATION - Fulbright-Hays Programs |
$0.08 |
| U.S. DEPARTMENT OF LABOR |
$1.20 |
| U.S. ENVIRONMENTAL PROTECTION AGENCY (EPA) - Environmental Programs |
$0.11 |
| PEACE CORPS |
$4.37 |
| TOTAL FY 2002 AGENCY FUNDS BUDGETED |
$96.93 |
| TOTAL FY 2002 U.S. GOVERNMENT FUNDS BUDGETED (FSA + AGENCY FUNDS) |
$253.05 |
|
VALUE OF TRANSPORTED DoD EXCESS & PRIVATELY DONATED COMMODITIES |
$25.49 |
| TOTAL FY 2002 U.S. GOVERNMENT ASSISTANCE (INCLUDING HUMANITARIAN COMMODITY VALUE) |
$278.54 |
