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Ukraine Foreign Nuclear Assistance
The Nunn-Lugar Cooperative Threat Reduction (CTR) Program
Overview
CTR Cumulative Obligated Funds
CTR Funding Developments
Cumulative CTR Funding for Ukraine
CTR Developments in Ukraine
Chain of Custody
Demilitarization
Dismantlement
Gore-Kuchma Commission
Other US Assistance Programs
Science and Technology Center in Ukraine (STCU)
International Assistance Programs
Canada
France
Germany
IAEA
Italy
Japan
TACIS
United Kingdom
General Western Support


This is an archived page. Please visit the new Ukraine country profile
Ukraine: Foreign Assistance: Overview

Ukraine: Foreign Assistance Overview

Nuclear Disarmament Cooperative Threat Reduction Program CTR Funding for Ukraine Defense Conversion Agreement Science and Technology Center in Ukraine (STCU)
Nuclear Power and Safety
International Assistance: Canada, France, Germany, IAEA, Italy, Japan, TACIS, United Kingdom

Nuclear Disarmament
The main source of funding for Ukrainian nuclear disarmament efforts has been the Cooperative Threat Reduction Program through which the United States obligated approximately $460 million of aid for Ukraine through January 1999, of which almost $340 million has been allocated for the destruction and dismantlement of strategic offensive armaments and related infrastructure in Ukraine. Dismantlement projects funded by the CTR program include missile and silo elimination, rocket fuel conversion, and bomber elimination, activities described in more detail in the Ukraine: Nuclear Disarmament Overview. Other projects funded by the CTR program in Ukraine include a government-to-government communication link between Ukraine and the United States, construction of housing for retired military officers, provision of emergency response equipment to ensure the safety of nuclear warhead transfers, as well as the initiation of defense conversion projects for Ukrainian military-industrial complex enterprises.[1] Much of the actual work in this area has been performed by US companies operating under CTR-funded contracts, often employing Ukrainian firms as subcontractors.

Approximately $11 million has been used to finance several defense conversion projects involving Ukrainian firms which formed part of the Soviet nuclear weapons complex, including the Khartron Production Association in Kharkiv and the Kommunar Production Association in Zaporizhzhya.[2] Implementation of these projects began following the signing of the Defense Conversion Agreement by the United States and Ukraine in December 1994.[3] 

To facilitate the retirement of Strategic Rocket Forces officers in Ukraine who operated the missile units subject to elimination, the United States agreed to provide housing, thus satisfying Ukrainian laws mandating that all officers be provided housing upon retirement. By November 1997 the US Army Corps of Engineers, in conjunction with US and Ukrainian firms, had constructed 261 houses at the Pervomaysk ICBM base and 605 apartments at the Khmelnytskyy ICBM base.[4]  

Another major CTR-funded project is the Science and Technology Center in Ukraine (STCU) the main mission of which is to support research projects by Ukrainian scientists who were previously involved in the development of weapons of mass destruction or their delivery systems. The center was established on the basis of an agreement signed on 25  October 1993 by Canada, Sweden, Ukraine, and the United States. On 4 May 1994  Ukrainian President Leonid Kravchuk issued an edict by which the STCU entered into force. The STCU became fully active in January 1995.[5] Since its beginning, the STCU has funded projects worth $29 million and involving over 4500 scientists.[6] In addition to CTR funds, the STCU receives significant financial support from other signatories of the founding agreement.

While the US has been the largest single donor of assistance for Ukrainian nuclear disarmament, other countries have contributed significant amounts of aid as well. Canada has donated $15 million for projects ranging from environmental restoration of eliminated ICBM silo sites and conversion of defense industry enterprises to civilian production, to radiation monitoring and reactor safety and funding the Science and Technology Center in Ukraine.[7]  The government of Germany has allocated DM 3.5 million for ICBM silo elimination, as well as additional funds for medical equipment and officer housing.[8,9] Japan has contributed $16 million to Ukrainian disarmament efforts. 
Sources:
[1]  CTR Web Site, www.dtra.mil/ctr/index.html
[2]
"Utverzhdeny ukrainsko-amerikanskiye proekty konversii VPK Ukrainy," Finansovyye izvestiya, 6 February 1996, p. 1.
[3] "Defense Conversion Assistance to Ukrainian Government," Defense Nuclear Agency, US Department of Commerce, 941460540, 24 May 1994.
[4] "Strategic Rocket Forces Housing," CTR Web Site, www.dtra.mil/ctr/index.html 
[5] "First Annual Report," Science and Technology Center in Ukraine, 1996, pp. 7-8. 
[6] "Joint Statement: 8th STCU Governing Board Meeting," 27 May 1999, STCU Web Site, http://www.stcu.kiev.ua/html/news/n_rel.htm.
[7] Christopher Guly, "$15 Million Grant From Canada To Promote Ukraine's Disarmament," The Ukrainian Weekly, Vol. 62, 17 April 1994, p. 3.
[8] Raisa Stetsyura, ITAR-TASS, 23 August 1996; in "German Funds to Help Kiev Destroy 5 Nuclear Missile Silos," FBIS-SOV-96-166.
[9] "Ukrainian-German Protocol on Assistance in the Nuclear Disarmament of Ukraine Signed," Narodnaya armiya, 29 August 1996, p. 1; in "Mykhtyuk & FRG Ambassador Sign Nuclear Disarmament Accord," FBIS-UMA-96-192-S, 29 August 1996.

Nuclear Power and Safety
In November 1994 the European Union pledged $234 million in aid to Ukraine. While some of this assistance was earmarked for nuclear disarmament-related programs, like housing for retired officers and defense conversion, most was intended for fissile material controls, reactor safety upgrades, and export controls.[1] This aid was provided in addition to the $500 million already granted by the G-7 and the EU for housing construction and Chornobyl-related programs. In 1999 the European Union pledged an additional $8.9 million to improve the safety of Ukrainian power plants. This assistance was rendered through the Technical Assistance to the CIS (TACIS) program, with the intent to support Khmelnytskyy, Rivne, Zaporizhzhya, and South Ukraine NPPs, as well as the nuclear power utility Enerhoatom.[2] Individual European countries have also provided assistance. In 1997 France provided an $800,000 grant for safety improvements at Zaporizhzhya NPP, followed by $1.5 billion in credits for purchasing equipment from French firms.[3,4] while the German government is involved in financing a nuclear waste processing facility in Slavutych.[5]

Several countries have offered to assist Ukraine in closing down the Chornobyl NPP and restoring the environment affected by the 1986 disaster. By July 2000 the G-7, the European Union and 30 other countries pledged $715 million for the Chornobyl Shelter Fund, which was initiated in Denver in July 1997. Ukraine plans additional donor conferences, to raise the additional $53 million required for the reconstruction of the existing Chornobyl Unit 4 sarcophagus and the construction of a new containment structure.[6,7] Through the end of 1997, the US government had provided $5.4 million to the Chornobyl Center on Problems of Nuclear Safety, Radioactive Waste, and Radioecology. The Center has been involved in a number of projects related to the safety of the Chornobyl Unit 4 sarcophagus.[8]  European countries have provided assistance to this center as well. Germany and Italy have expressed interest in the project, and France agreed in 1996 to provide roughly $200,000 in aid.[9]

Along with attracting assistance for nuclear safety and the Chornobyl shut-down, Ukraine has been seeking foreign support for the completion of additional power units at Rivne and Khmelnytskyy NPPs, hoping to receive a loan from the European Bank for Reconstruction and Development (EBRD). Although the German government's June 2000 decision to phase out nuclear energy placed its support, as a major EBRD shareholder, for the loans under some doubt, on 7 December 2000 the EBRD approved a $215 million loan for the completion and safety upgrade of Rivne-4 and Khmelnytskyy-2 units.[10,11,14] In November 2001 Ukraine rejected the EBRD requirements and in December 2001 it reached a preliminary agreement with Russia concerning loans and credits for the reactor construction.[15] As of April 2002, negotiations with the EBRD continued, however.[16]

US assistance to Ukraine in the area of nuclear safety has centered on improving its Materials Protection, Control, and Accountability (MPC&A) safeguards (please see Ukraine: MPC&A Overview). Additionally, the United States assisted Ukraine through the transfer of dry nuclear waste storage technologies under the US Department of Energy's International Nuclear Safety Program.[12] In 1999 the US government provided $25 million for nuclear safety programs, and in the same year the US-Ukrainian Agreement on Cooperation in the Nuclear Energy Field was signed. This agreement includes the Ukraine Nuclear Fuel Qualification Project with an estimated cost of $30 million. Its implementation began in June 2000, when Presidents Clinton and Kuchma signed the project's implementing agreement in Kiev.[13] 
Sources:
[1] Ron Popeski, "West gives Ukraine $234 million in new arms aid," Reuters, 15 November 1994.
[2] UNIAN, 26 February 1999; in "TACIS Cash Pledged To Improve Nuclear Safety," Lexis-Nexis Academic Universe,
http://web.lexis-nexis.com/universe.
[3] Izvestiya Ukraina, 13 February 1997, p. 1; in "France Gives Grant Toward Zaporozhye N-Plant Safety Project," FBIS-SOV-97-031.
[4] Eastern Economist, 24 February 1997, p. 16. 
[5] Intelnews, 10 February 1999; in "German Loans Likely To Build Nuclear Waste Process Plant," FBIS Document FTS19990210000327.
[6] "Chornobyl Conference in Berlin: A Success?" Monitor, Vol. 6, No. 133, 11 July 2000.
[7] Ann MacLachlan, "Pledges Come Close to Meeting Total Needed for Chernobyl-4," Nucleonics Week, Vol. 41, No. 28, 13 July 2000.
[8] "U.S.-Ukrainian Accomplishments at Ukraine's Nuclear Power Plants," Office of Nuclear Energy, Science and Technology, US Department of Energy, May 1998.
[9] "Ukrainian Nuclear Safety Center Finally Created After US 'Prodding'," Post-Soviet Nuclear & Defense Monitor,  17 May 1996,  pp. 6-7.
[10] Ann MacLachlan and Alexei Breus, "Despite Optimism, Uncertainty Abounds for K2/R4 Funding," Nucleonics Week, Vol. 41, No. 28, 13 July 2000.
[11] "Ukraine to Borrow from EBRD to Build Nuclear Generators," Interfax, 21 July 2000. 
[12] "Improving Safety Through Dry Storage of Spent Fuel," Pacific Northwest National Laboratory Web Site,
http://www.insp.pnl.gov:2080/?info/drystore.   
[13] "Kuchma i Klinton privetstvuyut nachalo realizatsii na Ukraine proyekta kvalifikatsii yadernogo topliva," Interfax, 5 June 2000. 
[14] "EBRD okays loan for K2/R4 nuclear plants," Nuclear News, January 2001, pp. 64-65.
[15]
Roman Woronowycz, "Kyiv rejects EBRD's requirements for loan to complete two reactors," Ukrainian Weekly, 9 December 2001, pp. 2, 23.
[16] "Ukraine i EBRR dostigli progressa na peregovorakh o finansirovanii dostroyki dvukh blokov AES," Interfax, 9 April 2002.
{Entered 11/3/2000 MJ}

Last updated 20 November 2002
For more recent updates, see the Ukraine:  Cooperative Threat Reduction Program, Ukraine: Other US Assistance Programs, and Ukraine:  International Assistance Programs files.

Comments or questions? Contact Michael Jasinski at MIIS CNS: Michael.Jasinski@miis.edu

 

 

CNSThis material is produced independently for NTI by the Center for Nonproliferation Studies at the Monterey Institute of International Studies and does not necessarily reflect the opinions of and has not been independently verified by NTI or its directors, officers, employees, agents. Copyright © 2002 by MIIS.

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