FOR THE RECORD: Statement on Ukraine issued by United States and European Union (12/14/97)

FOR THE RECORD: Statement on Ukraine issued by United States and European Union

Following is the text of the joint statement on Ukraine released at the U.S.-European Union Summit in Washington on December 5.

1. The United States of America and the European Union affirm their mutual support for Ukraine's sovereignty and independence, and their shared desire to help Ukraine achieve its goals of consolidating democracy, protecting human rights, reforming the economy and full integration into the international community. Ukraine's development as a prosperous democracy is a key component of European stability and security.

2. The U.S. and EU have been leading contributors to support the transition process in Ukraine which is currently one of the main recipients of EU and U.S. assistance (EU: 4.02 billion ECU - equivalent to $4.6 billion - since independence; U.S.: $2.18 billion over the past six years). The U.S.-Ukraine Binational Commission meeting in May 1997 and the EU-Ukraine Summit in September 1997 reflect our shared view of Ukraine's importance. Substantial support for transition in Ukraine will be maintained.

3. The U.S. and the EU welcome the significant foreign policy successes of Ukraine and Ukraine's commitment to regional cooperation. They consider Ukraine as a provider of security in its region and welcome the partnerships established with European and trans-Atlantic structures.

4. The U.S. and the EU welcome the substantial progress achieved in the field of democratization. The establishment of a political system capable of resolving internal conflicts by dialogue and consensus is an important element of a democratic state. They urge Ukraine to reinforce the rule of law, in particular by strengthening the judicial and legal systems and by fighting effectively against corruption and smuggling.

5. The U.S. and the EU continue to support efforts to nurture Ukraine's civic culture and the culture of lawfulness on which all democracies are built. Education is essential to this work. We will work together and with the NGO community to develop civic education for democracy and support the growth of civil society in Ukraine.

6. Ukraine has made considerable progress in its economic transition process, especially in the reduction of inflation from hyperinflationary levels in 1993 to near single digits at the end of 1997. This is an important achievement.

7. What is needed now are significant and continuous efforts by Ukraine to promote structural reforms to achieve sustainable growth and attract foreign and domestic investment. Economic restructuring cannot be achieved without giving private initiative a chance, above all through privatization, industry restructuring, reform of the agricultural sector, small business development, deregulation, improvements in public administration, and an open and transparent business environment. These steps are necessary to encourage investment, create jobs and produce tangible benefits for the people of Ukraine.

8. Ukraine will accelerate its integration into the world economy by reducing barriers to foreign trade and investment. The U.S. and the EU will consult on issues of market access for goods and investors, and work together to facilitate the process of Ukraine's accession to the WTO [World Trade Organization], based on adherence to WTO rules and appropriate commercially viable commitments by Ukraine.

9. The U.S. and the EU have supported the intensive involvement of the international financial institutions in promoting Ukraine's economic transformation. We have pledged to help identify the actions that are necessary for the success of IFI [international financial institution]-funded investment and reform efforts. The U.S. and EU will continue to work with Ukraine, other donors and the international financial institutions to allow the government of Ukraine to take full advantage of these opportunities.

10. We will:

jointly support Ukrainian restructuring plans in the energy sector - notably in electricity, coal and gas - and assist Ukraine in implementing a long-term energy sector program in order to arrive at an efficient, sustainable and market-oriented energy sector well suited to Ukraine's needs;
coordinate our respective programs in support of public administration reform in Ukraine, at the national and local levels;
coordinate programs in areas such as small business development, fiscal reform, civil society and civic education;
cooperate on practical steps to assist Ukraine in its efforts to build grassroots momentum for reform through work on the ground in Ukraine's regions and municipalities.

11. In view of the need to improve nuclear safety in Ukraine, the U.S. and EU will continue to assist Ukraine in its efforts to close the Chornobyl nuclear power plant by 2000 on the basis of the G-7 Memorandum of Understanding with Ukraine. We call upon all concerned parties to join us in supporting our initiative to repair the Chornobyl sarcophagus. We welcome pledges of support made by the international community at the Chornobyl pledging conference in New York on November 20, currently amounting to half the budget of the Shelter Implementation Plan ($387.3 million out of $750 million).

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