2/6/96: FOURTEEN CONVERSION PROJECTS UNDERWAY According to the Deputy Minister of Machine Building, the
Military-Defense Complex, and Defense Conversion Valeriy Kazakov, as of
2/96, 14 joint conversion projects were being funded by CTR. Kazakov said
that a number of projects involving Ukrainian-American joint ventures founded
in the second half of 1995 were already underway. In particular, he named
the Khartron Production Association in Kharkiv with Westinghouse; the Kommunar
Production Association in Zaporizhzhya and the Federal Defense Group; and
the Chernyhiska Factory of Radio-Instruments with AT&T.
["Utverzhdeny Ukrainsko-Amerikanskie Proekty Konversii VPK
Ukrainy," Finansoviye Izvestiya, 2/6/96, p. 1.]
12/20/95: DEFENSE MINISTER REPORTS FEEBLE CONVERSION AID According to Defense Minister Valeriy Shmarov, only two Ukrainian
enterprises have received grants from the CTR project for defense conversion.
[Olha Vaulina, "Ne Tilky Pro Stratehichny 'Matalobrukht,'"
Holos
Ukrainy, 12/20/95, p. 8.]
5/15/95:PRESIDENT CLINTON PLEDGES MORE CONVERSION
AID President Clinton, while visiting Kiev, pledged to provide
Ukraine with an additional $27 million in Nunn-Lugar funds for disarmament
and defense conversion. Ten million dollars was to help convert factories
that produced weapons of mass destruction (or WMD components) to the production
of civilian products with the assistance of US firms. Another ten million
dollars was to go towards environmentally friendly dismantlement of facilities
and equipment associated with strategic offensive arms. Five million dollars
was to be designated for the SCTU. The remaining $2 million was to be used
for defense and military contacts between the Ukrainian MoD and the US
DoD, including joint exercises.
Sources: [1]Chrystyna Lapychak, "Clinton Ends Visit to Ukraine," OMRI
DAILY DIGEST, No. 93, Part II, 5/15/95. [2] "Fact Sheet: United States-Ukraine Cooperation on Dismantlement
and Non-Proliferation Assistance", The White House, Office of the Press
Secretary, Kiev, Ukraine, 5/11/95.
3/21/94:DEFENSE CONVERSION AGREEMENT SIGNED The United States and Ukraine signed a Defense Conversion
Agreement in which the US pledged up to $15 million to support material,
training, and services associated with conversion projects. The Nuclear
Power Machine Building Plant in Kharkiv was one of the defense enterprises
being considered for assistance.
["Defense Conversion Assistance to Ukrainian Government,"
DEFENSE NUCLEAR AGENCY, US DEPARTMENT OF COMMERCE, 941460540, 5/24/94.]
SRF HOUSING UPDATE: In accordance with Ukrainian law, which stipulates that officers
must have secure housing before being demobilized, the US firms of ABB
SUSA and Bill Harbert International Construction assisted the Ukrainian
firms Montazhnyk K and Frehat ( in building officer housing
at Khmelnytskyi and Pervomaysk. In 5/96, the first phase of Khmelnytskyi
housing (195 units) was completed; the second phase (410 units) is to be
completed by 11/97. On 8/23/96, housing construction at Pervomaysk was
completed, with 261 houses built. However, according to a 6/95 General
Accounting Office (GAO) report, the Ukrainian housing requirement is 6,000
units for officer demobilization, and as of 4/95, 2,500 servicemen were
without housing.
Sources: [1] Department of Defense, "CTR Update: Ukraine," 9/26/96. [2] "Weapons of Mass Destruction. Reducing the Threat
from the Former Soviet Union," GAO Report to Congressional Requesters,
June 1995, GAO/NSIAD-95-165, pp. 14, 32. [3] Serhiy Zhurets, NARODNAYA ARMIYA (Kyiv), 4/19/95;
in "Nuclear Disarmament Aid Compensation, Not Aid," JPRS-TAC-95-023, 4/19/95.{Entered
11/1/96}
12/31/95: US ARMY ENGINEERS BEGIN HOUSING CONSTRUCTION A joint project to build a $17.4 million apartment complex
for officers of the Ukrainian 43rd Strategic Rocket Forces was launched
by the US Army Corps of Engineers' Transatlantic Division and the Central
Design Institute of the Ukrainian Ministry of Defense.
["United States and Ukraine: A New Partnership," The Ukrainian
Weekly, 12/31/95.]
11/22/94:CLINTON CONSIDERED AUGMENTING HOUSING
FUNDS US President Clinton considered granting an additional $20
million for the construction of housing units for retired servicemen from
the 43rd Missile Army in Pervomaysk and Khmelnytskyi a week after Ukrainian
Defense Minister Valeriy Shmarov asked the US for an additional $50 million
for the conversion of the military-industrial complex and the provision
of decommissioned officer housing. At the same time, Shmarov expressed
his dissatisfaction both with the pace of aid paid out thus far, as well
as with the fact that most of the money for Ukraine has been paid to American
companies and consultants. As a result of delays caused by "bureaucratic
barriers and inertia" in Washington, he said, Ukraine was forced to cover
most of its expenses. Defense Secretary Perry responded that he was aware
of Ukraine's desire to complete the disarmament process as quickly as possible,
but the Defense Department had to "play by the rules." Shmarov added that
in order to keep the dismantlement process on track, his government must
keep the military as allies.
Sources: [1] Paul Bedard, "United States To Reward Ukraine With Extra
$100 Million," The Washington Times, 11/22/94, pp. A1, A22. [2] Ustina Markus, "Ukrainian Defense Minister in US," RFE/RL
DAILY REPORT, No. 218, 11/17/94. [3] David Storey, "Unhappy Ukraine Seeks More Direct US Aid,"
REUTERS, 11/16/94.
To return to the main
foreign assistance entry, see the 