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Office of the Press Secretary

For Immediate Release November 22, 1994

During his meeting with President Kuchma, the President reaffirmed the U.S. commitment to support Ukraine's transition to a strong democracy with a prosperous market economy. The President welcomes and strongly supports Ukraine's determination to embark on the difficult path of comprehensive economic reform and intends to stand by the U.S. commitment to provide substantial economic assistance to support that effort.

To date, the total commitment of U.S. funds to support Ukraine amounts to $900 million. Ukraine is now the second largest recipient of U.S. aid among the New Independent States and the fourth largest recipient worldwide. In March 1994, President Clinton committed to provide up to $700 million in U.S. bilateral assistance to Ukraine -- $350 million for economic and humanitarian programs and $350 million in Nunn-Lugar assistance. By the end of September 1994, the U.S. had obligated $282 million in economic and humanitarian assistance. Approximately $120 in Nunn-Lugar assistance has been obligated.

The President informed President Kuchma that the U.S. has decided to provide an additional $200 million in new technical assistance to support economic restructuring and the development of democratic institutions. Of this sum, $100 million will be directed to technical assistance support in 1995. In addition, the U.S. has made an exceptional decision to provide up to $100 million in balance of payments assistance to help Ukraine cover its external financing requirements over the next several months as it implements IMF and World Bank reforms. Up to $72 million of this support will be provided in the form of an energy sector grant to help Ukraine import natural gas for heating and electricity this winter. The remainder comprises $3 million in commodities and $25 million in PL-480 concessional loans for food imports to be delivered early in 1995.

The U.S. will intensify its bilateral technical assistance to Ukraine, including programs related to economic restructuring, privatization, private sector development, energy sector reform, exchanges and training, environment and health care delivery. The U.S. will also continue programs to support the development of democratic institutions and the rule of law.