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Office of the Press Secretary

For Immediate Release March 4, 1994



On March 4, President Clinton and President Kravchuk of Ukraine finalized discussions on an expanded assistance package for Ukraine. The U.S. has agreed to provide up to $350 million in assistance in FY94. In addition, the U.S. will provide $175 million in Nunn-Lugar assistance in FY-94-95 to add to the $175 million already available. Total U.S. assistance to Ukraine in this calendar year will be roughly $700 million.

Initial discussions on this package took place January 24-30 during wide-ranging economic talks with a visiting delegation led by Ukrainian Minister of Economy Roman Shpek. The talks followed up on the Kiev meeting between Presidents Kravchuk and Clinton in January to move the focus of the U.S.-Ukrainian bilateral relationship from nuclear weapons issues to the development of comprehensive economic cooperation and expansion of commercial cooperation with an emphasis on partnership.

U.S. bilateral economic assistance will focus on four areas:

Support for Transition to a Market Economy: The U.S. will work to promote a Ukrainian private sector and to expand trade and investment opportunities. We will establish an enterprise fund to invest in new and privatized businesses, support land reform and private ownership of property, reinforce agribusiness partnerships, establish a joint Committee on Defense Industry Conversion, and provide sectoral support in health, economic restructuring, banking, energy, environment, and agriculture.

Support for Ukrainian Capacity to Provide Social Services: We will provide grant humanitarian assistance in the form of vaccines, pharmaceuticals, and grant food assistance and support Ukrainian efforts to provide social services, including establishment of a Joint Humanitarian Commission.

Support for Transition to Democratic Governance: We will continue to support Ukraine's transition to democracy through exchange programs to provide training in the U.S. for over 1000 Ukrainians; through a rule of law program to strengthen laws, legal institutions and civic structures; through assistance to local governments; and through development of financially viable independent media organizations and journalist training.

Support for Transition to a New Security Regime. We will expand support for safe and secure dismantlement of nuclear weapons, conventional weapons destruction, non-proliferation, and defense conversion, enhance military-to-military contacts, and support establishment of a science and technology center.

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