Congress approves $195 M for Ukraine (11/08/98)

Congress approves $195 M for Ukraine

by Michael Sawkiw Jr.
Ukrainian National Information Service

WASHINGTON - Following lengthy negotiations between Democratic and Republican members of Congress, the U.S. Senate and House of Representatives overwhelmingly passed several appropriations bills, which were combined into one large omnibus bill. Titled "H.4328 - Conference Report Making Omnibus Consolidation and Emergency Supplemental Appropriations for FY 1999," the bill encompasses several funding bills for agricultural programs, foreign assistance, judiciary programs, Commerce Department spending, Treasury Department programs, as well as other spending measures.

Amounting to over $500 billion, the bill was adopted by the House of Representatives on October 20, and by the Senate the following day.

Of the $13.2 billion in funds available for U.S. foreign assistance programs in the overall omnibus bill, $801 million was provided under the Freedom Support Act (FSA) for assistance to the new independent states. Twelve countries of the NIS will divide the available funds, with Ukraine receiving a $195 million earmark for 1999.

Funds for Ukraine have been designated for nuclear safety programs and personnel security initiatives at nuclear plants. However, a provision in the bill withholds the amount of aid granted to Ukraine "until the secretary of state reports to the Committee on Appropriations that Ukraine has undertaken significant economic reforms additional to those achieved in fiscal year 1998." The proviso refers to specific reforms of commercial and tax codes in Ukraine, as well as the continued resolution of U.S. business complaints that must be reported 120 days after the enactment of the bill.

The FY 1999 foreign assistance bill also effects programs in Russia and other former republics of the Soviet Union. U.S. aid to Russia is to be provided if the president certifies that "a) it is vital to the national security interests of the United States; and b) that the government of Russia is taking meaningful steps to limit major supply contracts and to curtail the transfer of technology and technological expertise."

No more than 30 percent of the funds available under the Freedom Support Act will be distributed to any country in the region, excluding earmarks of assistance to Ukraine and the Southern Caucasus region.

The Southern Caucasus region, which includes the countries of Georgia, Armenia and Azerbijan, has been provided $228 million in U.S. foreign assistance. Funds are to be available for "reconstruction and other activities relating to the peaceful resolution of conflicts within the region, especially those in the vicinity of Abkhazia and Nagarno-Karabakh."

Of the funds provided under this section of the Freedom Support Act, 37 percent will be made available for Georgia ($84.4 million) and 35 percent for Armenia ($79.8 million). Further assistance will also be provided for an endowment for the American University in Armenia.

The Central and East European countries also received U.S. foreign assistance within the Support for East European Democracy (SEED) Act in the amount of $430 million - $200 million of which has been designated for Bosnia and Herzegovina.

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