FY 2008 Foreign Operations Appropriated Assistance

Bureau of European and Eurasian Affairs
FY 2008 U.S. Government Assistance to and Cooperative Activities with Eurasia


FY 2008 Foreign Assistance Goals

The priorities of United States Government (USG) assistance to Ukraine are to help consolidate and strengthen democratic practices, deepen market reform, and advance Ukraine’s integration into Euro-Atlantic structures. Security assistance in FY 2008 was designed to help the Ukrainian military become interoperable with NATO forces and to participate effectively in peacekeeping missions. Law enforcement assistance sought to help bring these structures into line with European standards. Anti-trafficking-in-persons programs assisted both the rehabilitation of victims and work towards more effective prosecutions of traffickers. USG programs worked to promote democracy by strengthening the rule of law and judiciary, bolstering civil society and independent media, strengthening democratic political processes, and increasing the effectiveness, transparency, and accountability of the legislature and regional and local governments. In addition to assisting with agriculture-related faculty development, USG support aimed to address key challenges in the health sector including HIV/AIDS, tuberculosis, maternal/child health, and reproductive health. In the area of economic growth, the objective of USG assistance was to support the development of market economic mechanisms such as a modern trade system, and help national and regional governments attract needed investment. In the area of energy security, USG assistance, a joint effort with other donors, was provided to reform the country’s highly inefficient municipal heating sector and to reduce dependence on Russian nuclear fuel. The USG also provided humanitarian assistance, leveraging private contributions to deliver badly needed medical supplies and shelter to disadvantaged populations, and to respond to natural disasters.

Total FY 2008 Foreign Operations Appropriated Assistance: $83.41m*

FY 2008 Areas of Focus

P&S: Peace and Security

GJD: Governing Justly and Democratically

IIP: Investing in People

EG: Economic Growth

HA: Humanitarian Assistance

XCPS: Cross-Cutting Program Support
Date: 01/01/2009 Description: Ukraine: Total FY 2008 Foreign Operations Appropriated Assistance: $83.41m ,  Peace and Security=$33.43m, 40% , Governing Justly and Democratically=$19.64m, 24% , Investing in People=$11.57m, 14% , Economic Growth=$15.82m, 19% , Humanitarian Assistance=$1.20m, 1% , Cross-Cutting Program Support=$1.75m, 2%. State Dept Photo

(*Foreign Operations appropriated assistance, excluding Peace Corps funds and centrally managed Foreign Operations funds that are not budgeted for specific countries. HA total does not include the value of donated humanitarian commodities transported by the U.S. Department of State, estimated at $10.48 million in FY 2008.)

Highlights of FY 2008 Performance by Area of Focus

Peace and Security

In FY 2008, USG assistance:

  • Provided to the Ukraine State Service for Export Control, State Customs Service (SCSU), State Border Guard Service (SBGS), and the Ministry of Environmental Protection a total of approximately $1.1 million in equipment; including computers, radiation detection equipment, and isotopic identifiers. Training was provided to approximately 50 companies in licensing laws and procedures, 18 SCSU and SBGS officers on Sea Interdiction, and 100 SCSU Officers in Commodity Identification. In addition, nine SCSU managers visited Customs and Border Patrol Training Facilities in the United States.

  • Supported the State Nuclear Regulatory Committee of Ukraine (SNRCU) to develop regulations and regulatory technical guidance for nuclear facilities. The SNRCU now has the necessary technical resources to license a U.S.-designed spent fuel storage system, a system that would enable Ukraine to effectively manage the backend of its fuel cycle.

  • Helped the State Border Guard Service adopt a human resources management system, including recruitment and training, for both officers and warrant officers that is compliant with EU standards. Under Phase 1, completed in March 2008, the State Border Guard Service phased out conscripts and adopted an EU-compliant recruitment, training, and career path system for warrant officers.

  • Supported the development of Ukraine’s military, which remains the only Partner-for-Peace Partner Country to actively participate in every NATO-flagged military operation, with troops deployed to 11 peacekeeping and security operations throughout the Balkans, Eurasia, the Middle East, and Africa. Highlights include a continued presence of a battalion in Kosovo and two ship deployments to the Mediterranean. As a result of U.S. assistance, Ukraine established a Military Capability Working Group, in concert with U.S. and allied advisors, and embarked on its first efforts to reform its military training system along NATO lines.

  • Resulted in 310 newly-registered victims of trafficking receiving direct assistance and reintegration support with 88 percent of registered victims being either employed or reinstated into the educational system since FY 2006. Less than 1 percent of victims of trafficking disappear from the reintegration monitoring system. In addition, 18,000 copies of the film “Destination Point – Life” and the accompanying teachers’ guides were distributed to schools in every Ukrainian region. At least 270,000 high school students in 145 rayons (districts) and 121 towns participated in the counter-trafficking project.

  • Facilitated over 60 training sessions on Combating Trafficking in Persons for law enforcement officials and journalists. Concurrently, manuals on working with victims were developed and distributed to over 5,000 people, three regional hotlines were established, and ten regions developed joint strategies.

  • Trained over 1,200 justice sector personnel. Civil society organizations monitored 59 Ukrainian courts and a public awareness video on accessing the judicial system was produced for national television. USG-supported legal clinics provided 2,721 consultations and filed 294 lawsuits.

Governing Justly and Democratically

In FY 2008, USG assistance:

  • Supported the Criminal Justice Reform Concept, which was promulgated as a Presidential Decree and adopted in August 2008 by the Cabinet of Ministers as the criminal justice reform policy directive for its EU-Ukraine Action Plan. The Concept outlines the changes required to bring Ukraine’s criminal justice system, legislation and institutions into compliance with EU norms and standards; i.e., integration requirements.

  • Strengthened municipal associations and city management capacity in areas such as local economic development, budgeting practices, and financial management. As a result the Government of Ukraine will implement the first nationwide program-based budgeting for local government. Strategic planning, investment attraction and job creation assistance led to over $1 billion of investment in municipalities and more than 7,000 new jobs. USG assistance helped create a national utility tariff board that allows municipalities to begin cost recovery on basic communal services such as heating and water.

  • Increased the transparency and legislative deliberation processes of the parliament. In FY 2008, USG assistance supported the establishment of new websites for five parliamentary committees. USG assistance provided training to 43 percent of newly elected members and aides, and helped develop five manuals to guide law-making, oversight and constituency relations work.

  • Delivered political party training to 1,290 individuals and assisted Ukraine’s parties to more effectively use their party membership to respond to the electorate’s concerns. Training was also provided to 307 locally elected officials in 12 oblasts (regions) from all major political parties to build skills in media outreach and coalition development. USG assistance strengthened ties and understanding between party activists from different parts of the country and enhanced understanding of the importance of grassroots policies and politics within parties.

  • Strengthened the ability of civil society to develop public policy initiatives and advocacy campaigns, improved internal organizational capacity and financial self-sustainability, developed networks, and improved the enabling environment for civil society. For example, the newly formed Housing Reform Coalition grew from two to 45 organizations across Ukraine with the support of USG assistance. The coalition focuses on raising MPs’ awareness of housing issues and advocates for the adoption of national legislation to regulate condominium associations as part of Communal Services Reform legislation.

  • Bolstered independent media by creating a network of almost 600 journalists, leading to TV broadcasts of 20 programs on xenophobia, reaching a potential audience of 30 million people. USG assistance to improve Internet access resulted in over 157,000 additional hours of access in FY 2008. Through partnerships with U.S. media, 12 Ukrainian media outlets improved their performance.

Investing in People

In FY 2008, USG assistance:

  • Expanded Directly Observed Treatment Short (DOTS) Course Tuberculosis protocols within existing project sites and added one new region. Activities also helped to improve DOTS-related laboratory systems to ensure the accuracy of DOTS-linked diagnostics. USG programs made strides in building systems to improve management of TB-HIV co-infection and multi-drug resistant/extensively drug resistant (MDR/XDR) TB through the development of Ukraine’s first national protocol on MDR-TB case management, the design of a TB-HIV training course for health providers, and establishment of TB-HIV case management teams in three sites.

  • Supported HIV/AIDS prevention services reaching over 79,000 injection drug users. More than 7,000 individuals from most at-risk-populations received voluntary counseling and testing services through over 190 service outlets operated by over 200 trained staff, with all individuals tested receiving their test results. Project activities facilitated NGO provision of care and support services to people living with HIV/AIDS, with over 35,000 individuals receiving care through USG projects.

  • Trained 166 people from 19 regions in HIV/AIDS advocacy strategies aimed at mobilizing local government support of social services. USG-supported projects promoted tolerant attitudes towards people living with HIV/AIDS and reduced stigma and discrimination through use of peer educators in educational, health, and social institutions and in workplaces. These projects reached over 93,000 people through more than 200 anti-stigma and discrimination public events.

  • Trained approximately 2,100 health care providers on national maternal and newborn health protocols and other maternal, infant, and child health topics. Training in these key areas resulted in over 80,000 women receiving active management of the third stage of labor, over 90,000 newborns receiving essential newborn care, and over 86 percent of deliveries being completed without instruments. To institutionalize improved perinatal care practices, USG supported the introduction of both graduate and post-graduate curricula for physicians, midwives, and pediatric nurses. The graduate curriculum was integrated into all 17 medical universities providing obstetrics training. The training of 1,418 pharmacists enhanced the accuracy of counseling and increased contraceptive sales to clients. During FY 2008, approximately 247,500 Ukrainians were informed about the safety and efficacy of modern family planning methods. A week-long family planning campaign brought accurate modern family planning information to over 3.6 million people.

Economic Growth

In FY 2008, USG assistance:

  • Provided technical assistance that helped Ukrainian authorities draft dozens of laws and regulations and successfully navigate the difficult WTO accession process. To help Ukraine prepare for the WTO Government Procurement Agreement (GPA), USG assistance mobilized civil society forces, such as the Association of Ukrainian Cities, to promote legal and regulatory changes that closed opportunities for past corrupt procurement practices.

  • Helped 85 local governments attract over $1 billion in foreign direct investment by facilitating medium- and long-term economic development plans and supporting Municipal Offices of Economic Development. New economic development plans were followed by technical assistance and training that allowed for better access to information for investors, increased municipal capacity to market their goods and services, and created more efficient and transparent processes for the sale of municipal land plots.

  • Resulted in the certification of over 760 professional accountants (83 percent women). Without USG assistance, the program expects to certify at least the same number of professionals next year, demonstrating sustainable USG return on investment.

  • Worked with Ukraine’s industrial firms to prepare for the financing of bankable investment projects that would reduce gas consumption. Preliminary energy audits at ten industrial plants were completed and nine Investment Grade Audits were conducted. Audit results were used to attract investment in energy efficiency projects. Fourteen projects with a total value of $110 million were prepared. By the end of FY 2008, two projects received financing in the amount of $8 million from the European Bank for Reconstruction and Development (EBRD) and the Ukraine Import/Export Bank.

  • Funded the Ukraine Nuclear Fuel Qualification Program to provide Ukraine an alternate fuel supplier and establish the infrastructure needed for a competitive nuclear fuel supply. The project has a critical role in ensuring Ukraine’s energy security as the 15 nuclear reactors that generate half of Ukraine’s electricity solely depend on Russia for nuclear fuel. A significant accomplishment was achieved in FY 2008 when Ukraine implemented a strategic decision to purchase Westinghouse fuel for three reactors starting in 2011. Contracts were also signed for delivery of 42 Westinghouse manufactured fuel assemblies. Detailed technical analyses and extensive physical inspection of six irradiated U.S. supplied fuel assemblies were successfully completed.

  • Provided support to establish a common grain warehouse receipt system within GUAM, an international organization linking Georgia, Ukraine, Azerbaijan, and Moldova. This system that has received support from the EBRD and the Netherlands government, can play a role in limiting future government interventions in food exports, and has the potential to become a common system across all the Black Sea countries.

Humanitarian Assistance

In FY 2008, USG assistance:

  • Delivered 69 surface containers of donated assistance valued at over $10.5M, including clothing, footwear, medical supplies and equipment, hygiene items, and school supplies to organizations identified as among the most in need by Ukrainian NGOs. The Small and Medium Transportation Program (SMTP) provided donated assistance from U.S. NGOs and their charitable counter-parts in-country. USG assistance also supported the operation of regional medical centers, mobile medical units that travel to surrounding villages, and a mammography clinic.

  • Alleviated suffering when heavy rains in July caused massive flooding in Western Ukraine, leaving 36 people dead, dozens missing, and more than 40,000 homes damaged or destroyed. USG assistance stepped in to quickly disburse $50,000 of disaster relief funding and followed up by delivering approximately $1 million worth of emergency supplies.