Joint statement by presidents of the United States and Ukraine (06/04/95)

THE U.S.-UKRAINIAN SUMMIT: President Bill Clinton's visit to Kyyiv

Joint statement by presidents of the United States and Ukraine

Below is the text of the joint summit statement by President Bill Clinton of the United States and President Leonid Kuchma of Ukraine.

On the occasion of his state visit to Ukraine on May 11-12, William J. Clinton, president of the United States, met with Leonid Kuchma, president of Ukraine, to discuss the strengthening of the U.S.-Ukraine partnership, including areas which sustain the process of reform and enhance Ukraine's place in the global community.

The presidents reviewed their joint accomplishments in broadening the bilateral partnership and pursuing the forward-looking agenda they defined during President Kuchma's state visit to the United States in November 1994. President Clinton noted the historic efforts now under way to revitalize the Ukrainian economy and underscored the importance of an economically vibrant, democratic and stable Ukraine in an increasingly integrated European and world community. President Clinton assured President Kuchma that the United States continues to give high priority to sustaining Ukraine's transition to a market economy and to integrating Ukraine into the global economic community. President Kuchma expressed gratitude for the substantial support of the United States and underscored Ukraine's commitment to giving the highest priority to fundamental economic and political reform.

In the spirit of the Charter of American-Ukrainian Partnership, Friendship and Cooperation, signed during President Kuchma's state visit to the United States in 1994, the two presidents agreed to a program of cooperation, assistance and consultation aimed at strengthening their growing partnership.

Bilateral relations, economic cooperation

President Clinton congratulated President Kuchma on Ukraine's implementation of a comprehensive economic reform program that is supported by the international community. He underscored the importance of Ukraine's continued implementation of economic reform. President Clinton noted, in particular, the important threshold Ukraine had crossed in securing a $1.5 billion International Monetary Fund (IMF) stand-by program. President Kuchma welcomed international financial institution commitments to Ukraine which, in the last eight months, had reached $2.7 billion. Both presidents recognized the significance of these commitments in fulfilling the July 1994 Naples pledge to provide $4 billion in assistance over a two-year period. In addition to this, President Kuchma expressed satisfaction with the G-7 countries' recent pledge of almost $1 billion in direct bilateral financial support and reiterated Ukraine's desire to review progress on economic reform with G-7 governments. The two leaders also welcomed the support provided by Russia and Turkmenistan in rescheduling more than $3 billion in Ukrainian arrears.

The two presidents emphasized the importance of market-oriented reform as the path to realize the full potential of the Ukrainian economy. President Clinton reaffirmed U.S. support for Ukraine's economic program and commended President Kuchma for his bold leadership in this regard. President Clinton reaffirmed the U.S. commitment to provide $250 million in support to help Ukraine meet its critical import needs in 1995. President Clinton noted the importance of assistance provided in the form of an innovative agricultural trade credit insurance facility and announced that assistance will also be made available in the form of a new package of initiatives to help generate agricultural development in Ukraine. The package includes technical assistance for the development of an agricultural commodity exchange which will provide a private market alternative channel for such commodities, and technical assistance for the development of an agricultural market news system and for the safe handling of agricultural chemicals.

Recognizing needs in the health area, the presidents noted the delivery, already under way, of medical equipment equal to a 1,000-bed hospital valued at $17 million from the U.S. Department of Defense to Donetske.

President Clinton reaffirmed continuing U.S. support for Ukrainian efforts to implement structural economic reforms that will attract private capital and provide the foundation for mutually beneficial trade relationships. The two presidents reviewed U.S. support for the development of capital markets, the development and regulation of investment funds, and a pilot program for share registries to facilitate both domestic and foreign investment. President Clinton announced a new program of technical assistance and training to support credit union development., in response to Ukraine's interest in expanding the availability of savings and credit services to consumers and small businesses. President Kuchma reaffirmed his commitment to a bold program for massive privatization, creation of capital markets, rationalization of tax policy and development of a new legal framework to support a market economy. President Kuchma requested urgent international technical assistance to facilitate valuation of Ukrainian enterprises subject to privatization in the oil, gas and chemical industries. President Clinton recognized the importance of this proposal and reforming this sector as a whole and encouraged President Kuchma to make this a priority in his discussion with the international donor community.

The presidents underscored the vital role of trade and investment in invigorating Ukraine's economy and in integrating Ukraine into the global economic community. The presidents recognized the strong potential for growth in U.S.-Ukraine trade and investment, and noted the positive impact of recent and continuing economic reforms on Ukraine's business environment. In recognition of this, President Clinton announced that the U.S. Export-Import Bank has reopened its programs in Ukraine, making available short- and medium-term financing for U.S. exports guaranteed by the Ukrainian government. The United States strongly supports Ukraine's accession to the World Trade Organization and is providing assistance to the Ukrainian government to support this process. Underscoring their determination to expand bilateral commercial relations, the presidents announced that the second meeting of the Joint Commission on Trade and Investment will be held in July. This commission serves as a primary vehicle for bilateral commercial cooperation launched during President Kuchma' s state visit to Washington in November. Both presidents agreed, in order to showcase further the potential for commercial partnership between the two countries, that the commission would organize a Conference on Trade and Investment to take place in the United States early in 1996. President Clinton also noted that the Overseas Private Investment Corporation's (OPIC) Central European Investment Conference, to be held in Chicago on July 11, will include a special focus on Ukraine.

President Clinton confirmed his support for the renewal of the U.S. General System of Preferences program, which would include Ukraine as a beneficiary country. He reiterated his administration's recognition that Ukraine is an economy in transition to a free market and noted the administration's intention to work closely with Ukraine in resolving bilateral market access issues in a mutually satisfactory manner. These issues will be addressed through the Joint Commission on Trade and Investment, which will consider initiatives designed to reduce barriers to mutual market access, taking into account the problems Ukraine faces as an economy in transition.

Both presidents stressed the growing importance of opportunities for private business, both Ukrainian and American, to develop key sectors of the Ukrainian economy, noting in particular the potential for agriculture, energy, aerospace, telecommunications, defense conversion and health. In this regard, both presidents praised the recent successful OPIC mission to Ukraine, which included corporate leadership from major American companies and focused on defense conversion opportunities. The presidents were pleased to note the announced formation of the U.S.-Ukraine Business Council as an indication of the growing interest of U.S. companies to establish commercial relationships with Ukraine.

Both leaders renewed their commitment to implement cooperative bilateral and multilateral programs aimed at the restructuring and reforming of Ukraine's energy sector and improving nuclear reactor safety. President Kuchma reaffirmed Ukraine's intention to work with the G-7 on Ukraine's energy sector, including step-by-step decommissioning of the Chornobyl reactors to be completed by the year 2000. President Clinton announced the U.S. intention to support the establishment of an international nuclear safety and environmental center to promote a high level of nuclear safety, drawing on the skilled nuclear power employees in the Chornobyl region. He also announced U.S. assistance to upgrade fire safety and operational safety at the Chornobyl nuclear plant until it can be decommissioned. The presidents noted that the two countries signed a protocol that will facilitate cooperative research on thyroid cancer stemming from the Chornobyl accident.

Both presidents agreed on the need for further close work in the G-7 Task Force to ensure the early implementation of energy sector reform initiatives. President Kuchma expressed appreciation for international efforts to ease Ukraine's energy burden and stressed the urgent need to overcome this burden if Ukraine's economic recovery is to move forward more quickly.

The presidents noted the signing of a protocol to the bilateral Civil Aviation Agreement to facilitate the growing volume of air travel between the two countries.

In continuation of civil space cooperation between the two countries, President Clinton and President Kuchma announced that a Ukrainian cosmonaut would fly aboard NASA Space Shuttle Mission STS-87, scheduled for launch in October 1997. In addition, the presidents noted with pleasure that the two countries have begun negotiations for an agreement which will facilitate Ukraine's entrance into the commercial space launch services market and enable Ukraine to offer such services to U.S. companies. The two leaders expressed confidence that this would lead to an important new chapter in U.S.-Ukrainian cooperation. They noted certain progress in these negotiations, the first round of which took place in Kyyiv on April 25-27. The presidents instructed their delegations to continue work in this direction in order to reach mutual agreement.

Both presidents expressed confidence in efforts to open new areas of bilateral cooperation, particularly in the field of law enforcement and judicial reform. They announced their intention to begin negotiations this summer for a Mutual Legal Assistance Treaty. The presidents agreed that expeditious completion of the treaty would enhance common efforts at combating crime. The presidents applauded their countries' initial exchanges aimed at combating the threat of organized crime and corruption and announced their countries' intentions to cooperate in the training of law enforcement professionals and in developing Ukraine's National Bureau of Investigation. They reiterated their support for the rule of law as an essential safeguard of civil and human rights.

Both presidents agreed on the importance of educational and professional exchanges noting that, through the FREEDOM Support Act, $8.2 million will be made available in fiscal year 1995 for Ukrainian graduate students, undergraduates and secondary school students to study in the United States This amount also provides for professional exchanges, making a total of 1,000 participants in these exchanges for Fiscal Year 1995.

Security and defense

Presidents Clinton and Kuchma noted that several historic steps have been taken in the area of arms control and security since their last meeting in November 1994. They cited, in particular, Ukraine's accession to the Nuclear Non-Proliferation Treaty (NPT) at the CSCE Budapest Summit, and the provision of security assurances to Ukraine in connection to this accession and the entry into force of the START I Treaty. In this regard, the presidents recognized the continuing importance of fulfilling the goals of the January 1994 Trilateral Statement signed by the presidents of the United States, Ukraine and Russia. Both presidents renewed their commitments to work together in both bilateral and multilateral fora to strengthen global peace and stability.

President Clinton recognized the historic contribution Ukraine continues to make to global peace and security in its implementation of strategic nuclear arms elimination commitments. He reiterated that continued U.S. support will help Ukraine reach its nuclear arms elimination goals in the interests of the world community. The presidents noted the substantial progress made in implementing Nunn-Lugar assistance to facilitate dismantlement of strategic offensive arms, to maintain the security of nuclear materials, and to help in the conversion of Ukraine's defense industries. President Clinton was pleased to announce, under the terms of the Nunn-Lugar program, the availability of up to an additional $10 million for defense conversion; up to $10 million in funding for nuclear infrastructure elimination projects; up to an additional $5 million for the Science and Technology Center in Ukraine; and up to an additional $2 million for defense and military contacts. In addition, the presidents announced that, subject to the completion of U.S. internal procedures, including Congressional notification, both countries had agreed on further assistance projects that will include additional funding for strategic offensive arms elimination; the physical protection, control and accounting for nuclear materials; and export controls. The presidents .were pleased to announce that the Science and Technology Center, as of today, will begin accepting project proposals from Ukrainian scientists and engineers for technical evaluation and funding consideration.

The two leaders praised the rapid expansion of bilateral defense cooperation as a positive demonstration of the two countries' cooperation President Clinton underscored the importance of such programs as the International Military Education and Training (IMET) program and informed President Kuchma that the United States hoped to allocate $950,000 in 1996 to support the continued expansion of Ukraine's IMET participation. Both presidents agreed that IMET and other bilateral cooperative programs are important to strengthening civilian leadership of Ukraine's defense establishment. The presidents also noted a U.S.-Ukraine program of defense and military contacts for 1995, which call for over 50 events, including a combined peacekeeping training exercise - in the spirit of the Partnership for Peace program - which will be conducted in Lviv later in May.

Presidents Clinton and Kuchma devoted considerable attention to Ukraine's integration into European security structures. The presidents reaffirmed their shared vision of a stable, undivided, democratic Europe and an evolving security structure which promotes further integration. They discussed the prospective enlargement of the North Atlantic Treaty Organization (NATO), and the further deepening of Ukraine's cooperation with the alliance in broader terms, including through active participation in the Partnership for Peace, the North Atlantic Cooperation Council (NACC), and through other means. President Clinton noted that the process of enlarging NATO will be managed so as to enhance the stability and security of all European nations and expressed understanding for Ukraine's security position. The presidents agreed that the two countries would continue regular bilateral consultations on questions involving European security architecture. The two presidents acknowledged that an independent and stable Ukraine, secure in its internationally recognized borders, constitutes a key factor of stability and security in Europe.

President Clinton and President Kuchma welcomed the increasingly important role of the Organization for Security and Cooperation in Europe in the development of an all-inclusive European security structure and, in particular, in transcending divisions among nations. In this context, the two leaders reaffirmed their commitment to the 1975 Helsinki Final Act, including principles addressing the inviolability of frontiers, territorial integrity of states, peaceful settlement of disputes, and fulfillment in good faith of obligations under international law.

President Kuchma informed President Clinton of the latest internal political developments in Ukraine, including the Crimea. The presidents agreed that internal issues, like the Crimea, should be resolved by political means, in accordance with the rule of law, respect for human rights and OSCE principles, and within the context of respect for the territorial integrity of states.

The presidents underscored the importance of establishing a new multilateral regime to enhance transparency and responsibility in trade in arms and dual-use technologies. The two leaders recognized the importance that the new regime's membership include, states that produce arms and high technology goods, such as Ukraine, and committed to work toward the shared goal of Ukraine's participation in the new regime, consistent with the agreed criteria for membership.

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