EU-US Summit Facts Brief No. 3
UKRAINE
EU-US co-operation regarding Ukraine
The European Union and the United States have been the leading contributors
supporting the transition process in Ukraine which is currently one of
the main recipients of EU and US assistance. The EU has contributed 4,020
million ECU - equivalent to $4.6 billion - since the independence of Ukraine,
whilst the US’s contribution has been $2.18 billion over the past
six years.
The EU and US share a common long term strategic interest in developing
and deepening relations with Ukraine. They already co-ordinate their technical
assistance on the ground.
Nuclear safety, Chernobyl
A good example of that co-operation is Chernobyl. In view of the need
to improve nuclear safety in Ukraine, the EU and the US are assisting
Ukraine in its effort to close down the Chernobyl Nuclear Power Plant
by the year 2000 on the basis of the G-7 Memorandum of Understanding with
Ukraine. The EU already supports this with million ECU 500 (US $575 million),
of which US $115 million comes from Tacis grants and the remainder in
EURATOM loans.
As regards the repair of the Chernobyl sarcophagus, the EU has already
pledged a contribution of US $180 million (US $115 million Community contribution
and bilateral pledges by EU Member States) as part of the US $387.3 million
pledged so far (out of a US $750 million needed).
Ukraine’s WTO accession
Ukraine is expected to accelerate its integration into the world economy
by reducing barriers to foreign trade and investment. Progress is being
made to facilitate the process of Ukraine’s accession to the WTO,
based on adherence to WTO rules and appropriate commercially-viable commitments
by Ukraine.
The EU strategy in support of Ukraine
The European Union considers that an independent, democratic Ukraine
would bring an essential contribution to the stability of Europe as a
whole.
The EU has implemented a comprehensive strategy to support reforms in
Ukraine and set up a strong political and economic partnership with the
country. The EU is the number one international donor to Ukraine with
US $4.6 billion committed over seven years (1991-97), of which US $2.1
billion in grants through the Tacis Programme.
The main EU instruments being used are:
- The Partnership and Co-operation Agreement, signed in June 1994, which
is in the process of ratification. It aims to support the consolidation
of democratic institutions in Ukraine, to foster economic transition
and to introduce the country into the world economy.
- In order to help Ukraine restructure its economy and reform its legislation,
the EU provides technical assistance to Ukraine as well as macro-financial
support. The Tacis technical assistance programme is giving US $618
million for Ukraine from 1996 to 1999 which will secure a stable level
of financial commitment through this period. Tacis assistance concentrates
on three priority areas : institutional reform and development, support
for economic reforms and private sector development, as well as energy
reform.
Macro financial assistance is another area of concrete EU action. In
support and conditional upon Ukraine's economic stabilisation and structural
reform programme, the EU has committed untied long-term loans of up to
US $237 million in favour of Ukraine. A new loan up to US $172 million
is in preparation.
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