2003: THE YEAR IN REVIEW

U.S.-Ukraine relations: new ambassadors named

Following a two-year downhill slide in the U.S.-Ukrainian relationship, which gave rise to a general feeling by the end of 2002 that things were coming to a head, the relationship was stabilized somewhat in 2003.

The turnaround came as some of the irritants - like Kyiv's weak anti-money-laundering efforts - were improved; others - like Washington's allegations that Ukraine sold anti-aircraft radar to Iraq - were muted; and Kyiv agreed to send a battalion of its troops to join the U.S.-led coalition forces in Iraq.

Not all bilateral irritants were defused last year, however, and some new ones surfaced, as did a rise in anxiety about the way the 2004 presidential election would be run in Ukraine.

The year also saw a changing of the guard at the U.S. and Ukrainian embassies in the two capitals.

The first hint of a potential turnaround in relations came in late January, during a meeting of the U.S.-Ukraine Committee on Economic Cooperation. The head of the Ukrainian delegation, Minister of the Economy Valerii Khoroshkovskyi, told journalists that he sensed that the United States was interested in improving the relationship. "As I see it," he added, "we made progress in this direction."

The two sides worked on some of the issues that had contributed to the worsening of bilateral ties, among them Ukraine's economic reforms, unresolved trade and investment disputes, including U.S. poultry exports, protection of intellectual property rights and money-laundering sanctions.

Mr. Khoroshkovskyi said that the American side indicated it would support Ukraine in getting the Financial Action Task Force (FATF) to lift its recommendation that countries use economic sanctions against Ukraine for being lax in dealing with international money laundering and that it would also support Ukraine's efforts to gain membership in the World Trade Organization.

The visit came at the conclusion of the Bush administration's review of its policy toward Ukraine, the results of which were not all favorable. While the delegation was still in Washington, an "administration official" leaked to the press that the administration was shifting $34 million of aid promised for Ukrainian government projects that year to non-government programs fostering political and economic reform in Ukraine. According to the report, this was being done in response to President Leonid Kuchma's alleged approval of the sale of Ukraine's Kolchuha air defense system to Iraq.

A few days later, in the administration's 2004 budget request to Congress, Ukraine was among the countries to suffer massive cutbacks in its assistance package. The proposed aid to Ukraine was slated to be reduced from $155 million to $94 million for Fiscal Year 2004, which included drastic cuts in Ukrainian-language broadcasts by the Voice of America and Radio Liberty.

Less than two weeks later, Deputy Assistant Secretary of State for European and Eurasian Affairs Steven Pifer told a policy institute in Washington that after a three-month review of U.S. relations with Ukraine, the administration decided "to, basically, disagree" with Kyiv on whether Ukraine sold a Kolchuha air defense system to Iraq, as was alleged, or not.

Mr. Pifer, who earlier had served as U.S. ambassador to Ukraine, said that Washington would not allow the Kolchuha issue to put U.S.-Ukrainian relations into a "deep freeze."

As Washington was releasing the findings of its policy review toward Ukraine in early February, President Kuchma's government was agreeing to a U.S. request to send its nuclear, biological and chemical (NBC) clean-up battalion to Iraq. The Verkhovna Rada gave its go-ahead on sending the 1,800-man force in early June, and the troops left for Iraq in August.

Mr. Pifer said that among the review's conclusions was that Ukraine "still matters" to the United States - that the U.S. wanted Ukraine to succeed as a stable, democratic country, with a strong market economy and increasing links with Europe and trans-Atlantic institutions. To that end, Washington was determined to stay engaged with Ukraine, and, he added, "We're also going to engage more actively with the broad political spectrum" in Ukraine.

A week earlier, when former Prime Minister Viktor Yushchenko, who is widely recognized to be the leading opposition contender in the next presidential election, visited Washington, seeking U.S. support for strengthening democracy in Ukraine and keeping Washington engaged in his country, he had meetings with Vice-President Richard Cheney and Deputy Secretary of State Richard Armitage.

The Washington-based International Republican Institute, which assisted in setting up Mr. Yushchenko's visit, and another American non-governmental organization involved in democracy-building efforts in Ukraine, the National Democratic Institute, ran into difficulties in getting their activities registered in Ukraine last year. It became a bilateral issue for a few months before the government of Ukraine resolved it. Commenting on the resolution in a press interview in mid-December, Mr. Pifer said Washington was "encouraged and pleased" by this turn of events.

The year 2003 also saw two high-level economic missions from Ukraine visit Washington - one, headed by Vice Prime Minister and Finance Minister Mykola Azarov, in April, and the other, by National Bank of Ukraine Chairman Serhii Tyhypko, in July. Meanwhile, U.S. General Richard Myers, chairman of the U.S. Army Joint Chiefs of Staff, visited Kyiv in June to discuss U.S.-Ukraine military relations.

Democratic reforms in Ukraine and how the present government goes about preparing for the 2004 presidential election have been matters of serious concern in the United States.

According to the findings of the U.S. State Department's annual human rights report, Ukrainian officials "did not take steps to curb the widespread and open abuse of authority, including the use of government positions and facilities, to the unfair advantage of certain parties" in 2002.

On more than one occasion, U.S. officials have spoken out about the need to guarantee a "level playing field" in the coming presidential election.

Speaking at a conference on civil society in Ukraine in April, Undersecretary of State Paul Dobriansky indicated that this will require a commitment "at the most senior levels" and concrete steps to adopt the laws, develop the practices and create the institutions of a truly democratic state.

A "façade of institutions or going through the motions" will not suffice, she said, adding that Ukraine has to immerse into a "culture of democracy."

To that end, Ms. Dobriansky said, the U.S. government has decided "to place a special emphasis on promoting the forces of democratic change in Ukraine," particularly focusing on the preparations for the 2004 presidential election, "to ensure that the playing field is level and that the election is free and fair."

One result of this has been a move in Ukraine to make such foreign meddling in election processes illegal.

Former U.S. Ambassador to Ukraine William Miller also voiced concern about the 2004 presidential election, which, he stressed, "is a very critically important election for democratic governance in the former Soviet Union."

"It could be a disaster," he said at the Kennan Institute in March, "but it seems to me that the path of building towards a democratic society is the more likely one, and we should do everything we can as friends of Ukraine - and certainly as governments - to assist in assuring that the election will be as open, transparent, free and fair as possible."

He said he expects the oligarch-based "party of power" will try to undercut Mr. Yushchenko's popularity and viability as the leading candidate, but he expressed doubt it will work and suggested that it is in the interest of the West to be concerned and vigilant about how this plays out.

Later in the year the Verkhovna Rada passed, at least in the first reading, a proposed constitutional change, by which the president of Ukraine would be elected by the deputies in the Verkhovna Rada and not by popular vote. Reviewing the proposal, Ukraine's Constitutional Court ruled that this change would be constitutional.

During 2003, both governments replaced their ambassadors. After three years in Kyiv, Ambassador Carlos Pascual returned to Washington to become the State Department's coordinator for Assistance to Europe and Eurasia. He was replaced in September by John Herbst, the former ambassador to Uzbekistan.

One of the new U.S. envoy's first appearances in the Ukrainian capital was at Taras Shevchenko State University, where he spoke at the Conference on Freedom of Speech/Human Rights in Ukraine held on September 18-19.

He stated: "During 12 years of independence from the Soviet Union, Ukraine has come a long way. But make no mistake; there is a long way to go. This coming year offers real opportunity for Ukrainians to bring greater democracy to Ukraine. Americans stand ready to support Ukrainians to help realize goals of freedom. Now, I am here to listen, to form impressions, and in the coming years, to work with Ukrainians toward improved fundamental freedoms and human rights in Ukraine. I will work with you to support the goals Ukraine has articulated for itself: a future of independence and democracy in Ukraine. I look forward to working with you to make Ukraine a better place for all."

At about the same time, Ukraine's ambassador to the United States, Kostyantyn Gryshchenko, who had served in Washington for almost four years, returned to Kyiv to replace Anatolii Zlenko as minister of foreign affairs. His position in Washington was filled by Mykhailo Reznik, who was Ukraine's ambassador to China and Mongolia. In 1994-1997, Mr. Reznik headed the Ukrainian Embassy's trade mission in Washington.

At year's end, Ambassador Reznik traveled to New York City, where he met with Ukrainian American community leaders and activists during a reception at the Ukrainian Institute of America on December 21. Speaking before a full house, Mr. Reznik painted a picture of Ukraine as an integral part of Europe and a strong economic partner.

He also said Ukraine has plenty to offer the United States, which granted it the status of a strategic partner in 1996, but added that Kyiv has a lot to do in this sphere, especially as relations with the United States in recent years have undergone a change, and not for the better.

Ambassador Reznik said he had already met with President George W. Bush and other administration officials and that he sensed "a signal that they were awaiting us." President Bush, he noted, offered "positive expressions about our future relations." The envoy added that President Bush said "our relations are at a turning point." He agreed with that characterization of the U.S.-Ukraine relationship and commented that Ukraine must do everything possible to ensure that we are heard and to restore trust.

Turning to his relations with the diaspora, or more specifically Ukrainian Americans, Ambassador Reznik said: "I need your help, I need your advice." Noting that the next day, December 22, was the Day of the Diplomat, he added, "you, too, are diplomats" who represent Ukraine in humanitarian, cultural and other spheres.

Despite the move to cut back U.S. assistance to Ukraine, at least in one area it was increasing. After the U.S. Congress in February authorized the Open World exchange program to expand beyond Russia to other countries of the former Soviet Union, a group of 12 women activists from non-governmental organizations in Ukraine spent 10 days on a training program in Washington in December. Nine more groups are scheduled to take part in similar programs in other U.S. cities.

And as the year came to a close, a former prime minister of Ukraine, Pavlo Lazarenko, remained under arrest in California, where he is awaiting trial for laundering $114 million in the United States and other crimes. He was arrested in 1999 and has been held in a detention facility until last June, when he was released into a strict house detention regime after posting $86 million bail. His trial was to have started in August 2003, but was postponed until February 2004 to allow his lawyers time to complete their depositions of government officials and other witnesses in Ukraine.

Copyright © The Ukrainian Weekly, January 11, 2004, No. 2, Vol. LXXII

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