4/99: KUCHMA-GORE COMMISSION MEETS IN KIEV The Kuchma-Gore Commission met in Kiev in April 1999.
The meeting was led by Ukrainian Deputy Prime Minister Serhiy Tyhypko and
Roman Shpek, the head of the Ukrainian National Agency for Development
and European Integration, and by US Ambassador to Ukraine Steven Pifer
and CIS aid coordinator William Taylor. The participants signed a protocol
of intent that formed the basis for future meetings and discussed various
topics, including aid to Ukraine, implementation of a new mechanism to
coordinate US projects and programs in Ukraine, reforms in the energy sector,
and the shut down of the Chornobyl power plant.
[UNIAN, 20 April 1999; in "Ukrainian-American
Interstate Commission Signs Protocol of Intentions," Lexis-Nexis Academic
Universe, http://web.lexis-nexis.com/universe.]
{Entered 4/23/99 SK}
1/99: KUCHMA AND GORE DISCUSS
"KHARKIV INITIATIVE" In January 1999, Ukrainian President
Leonid Kuchma and US Vice-President Al Gore discussed the so-called "Kharkiv (Kharkov)
Initiative" during their meeting in Davos, Switzerland.[1] In compensation
for Ukraine's decision to cancel a contract to supply Iran with turbines
for the Bushehr nuclear
power plant, the "Kharkiv Initiative" is a plan for implementing US
promises to attract investment, economic projects, and jobs to the Kharkiv
region.[2,3] The turbines were supposed to be provided by TurboAtom, a
Kharkiv-based joint stock company, the largest turbine manufacturer in
the NIS, and the only producer of turbines with one-million KWh capacities
in the NIS.[4,5] Sources differ on the estimated losses associated with
the contract cancellation. While according to some sources the overall
losses amount to $100 - $130 million,[4,6] TurboAtom Director General Anatoliy
Bugayets indicated that the losses total $450 - $500 million.[7] (The cost
to produce one turbine is $45 million.[6]) According to Bugayets,
withdrawal from the project affects the whole Ukrainian power engineering
sector.[7] He said that TurboAtom could be compensated by direct financing,
equipment upgrades, and contracts. US Secretary of State Madeleine Albright
persuaded Ukraine to withdraw from the turbine deal in March 1998.[4] (For
an overview of this issue, see Ukraine,
Bushehr, and the MTCR.) The "Kharkiv Initiative" was set in motion
in mid-June 1998 when a group of delegates from the United States visited
Kharkiv to evaluate the region's investment capacities and to assist in
attracting investors.[3,8] On 2 December 1998, the United States
and Ukraine signed a joint statement outlining goals and priorities of
the so-called "Kharkiv Initiative." The Kharkiv regional administration
has also taken measures to improve the investment environment.[2] According
to Ukrainian Ambassador to Israel Dmytro Markov, Israel is willing to take
part in the initiative as well.[9] Kuchma used the occasion
of the meeting with Gore in January 1999 to propose that preparations for
projects under the program be accelerated.[1]
Sources: [1] UT-1 Television Network, 30 January
1999; "Ukraine's Kuchma Discusses Reforms With US Vice President," FBIS
Document FTS19990130000726. {Entered 4/20/99 SK} [2] "Ukraine, U.S. To Hold Conference
On Nuclear Security," Interfax, 13 January 1999. [3] UT-1 Television Network, 6 December
1998; in "Ukraine Nuclear Plant Loses Money, Jobs After Bushehr Deal,"
FBIS Document FTS19981207001402. [4] Interfax, 16 June 1998; in "Atomic
Plant Wants Damages For Loss of Iranian Contract," FBIS Document FTS19980616002044. [5] Interfax, 30 October 1998; in "Kuchma:
Ukraine To Stay Out of Iranian Nuclear Project," FBIS Document FTS19981030001164. [6] UT-3 Television Network, 3 December
1998; in "Ukraine Official On Withdrawal From Iran's Bushehr Project,"
FBIS Document FTS19981203000510. [7] Interfax, 19 March 1998; in "Withdrawal
From Iranian Nuclear Plant May Cost $500 Million," FBIS Document FTS19980320001708. [8] UT-1 Television Network, 16 June
1998; in "Ukrainian-US Mission Starts Work On 'Kharkiv Initiative,'" FBIS
Document FTS19980617000675. [9] Valentyna Badrak, "Chasing Two
Hares,"
Zerkalo nedeli, 27 March 1999, p. 3; in "Arms Cooperation
Options With Israel," FBIS Document FTS19990402001544.
5/97: INAUGURAL SESSION OF KUCHMA-GORE COMMISSION The inaugural session of the Kuchma-Gore commission
(US-Ukraine Binational Commission) took place in Washington on 16-17 May
1997. The commission, established in 1996, is aimed at strengthening
the relationship between the United States and Ukraine on a variety of
levels. This includes political, economic, and technological cooperation
between the two countries. The inaugural session of the commission,
co-chaired by US Vice-President Albert Gore and Ukrainian President Leonid
Kuchma, resulted in several agreements. In a joint statement, Gore
and Kuchma praised Ukraine's status as a non-nuclear weapon state, as well
as the decision to begin elimination of Ukraine's SS-24 missiles. Both
sides welcomed the signing of a document pledging $47 million for strategic
dismantlement projects in Ukraine and Gore promised to financially support
these efforts in the future. Kuchma and Gore further brought up cooperation
in ensuring safety in the energy sector. Both countries are seeking to
sign an Agreement on Peaceful Nuclear Cooperation to further promote nuclear
cooperation. Kuchma and Gore confirmed the commitment of both countries
to comply with international arms control and nonproliferation norms and
Kuchma summarized Ukraine's export control efforts. The Joint Statement
also noted Ukrainian and US collaboration in the area of scientific research
and technology development and reconfirmed the commitment of both countries
to intensify the cooperation, as well as to convert scientists' nuclear
weapons expertise to civilian applications.
["Joint Statement, Inaugural Plenary
Session," 16 May 1997, Inaugural Plenary Session Status Report, http://www.usia.gov/regional/.../gkc01/summary.htm.]
{Entered 2/18/99 SK}
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