Joint Summit Statement by the Presidents of the United States and Ukraine

On the occasion of his State visit to the United States on November 21-23, 1994, Leonid D. Kuchma, President of Ukraine, met with William J. Clinton, President of the United States, to open a qualitatively new stage in the growing U.S.-Ukrainian partnership aimed at furthering bilateral and multilateral cooperation on a broad range of issues between the two countries.

The Presidents renewed their shared commitment to broaden the bilateral democratic partnership into which the two countries have entered. President Clinton underscored the importance the United States attaches to the independence, sovereignty and territorial integrity of Ukraine. In this context, President Clinton assured President Kuchma that the United States will continue to give high priority to supporting Ukraine in its efforts to achieve genuine economic independence, its transition to a market economy and its integration into the global economic system.

Bilateral Relations

In keeping with their commitment to strengthen bilateral relations, President Clinton and President Kuchma signed the Charter of American-Ukrainian Partnership, Friendship and Cooperation. The Presidents praised the Charter as the framework for developing closer relations over the coming years. President Clinton noted in particular Ukraine's valuable contribution to this new framework by its momentous decision to accede to the Nuclear Non-Proliferation Treaty, which is an historic step forward on the road toward strengthening the international nuclear weapons nonproliferation regime and global security and stability.

The Presidents inaugurated this new framework of bilateral relations by signing an Agreement on Cooperation in the Exploration and Use of Outer Space for Peaceful Purposes and agreed to work closely to explore additional bilateral cooperative space-related opportunities in the future. They noted that this process had begun with a U.S.-Ukraine discussion of Ukraine's interest in the commercial launch market.

Both Presidents expressed their determination to broaden bilateral cooperation in a range of new areas. During the visit, the two governments brought into force a bilateral customs cooperation agreement and announced their intention to conclude negotiations on a bilateral civil aviation agreement. The Presidents recognized the threat that organized crime and corruption pose for reform and expanded business activity in Ukraine, and they agreed to cooperate in combating crime and promoting the rule of law as an essential safeguard of social stability and civil and human rights. The Presidents will encourage exchanges among Ukrainians and Americans in the fields of science, technology and education. The Presidents, noting the valuable role of culture in bringing nations closer together, voiced support for wide-ranging cultural contacts between the United States and Ukraine. Both Presidents also recognized the importance of health care for the well-being of their people, and President Clinton announced that the United States would provide Ukraine hospital equipment, medical supplies and assistance with health programs.

The Presidents intend to maintain frequent high-level bilateral contacts to assure timely and effective implementation of activities. President Kuchma invited President Clinton to make an official return visit to Ukraine at the earliest convenient opportunity. President Clinton accepted this invitation with pleasure.

Economic Cooperation

The Presidents agreed that market-oriented economic reform provides the surest path to Ukraine's economic revival and its integration into the world economy. President Clinton reaffirmed full U.S. support for the reform policies recently adopted by President Kuchma's government and its conclusion of an IMF Systemic Transformation Facility program. President Kuchma outlined plans for accelerating the process of economic reform. These plans include intensifying structural reform efforts to encourage competition through enhanced macroeconomic stabilization and increased privatization. President Clinton commended President Kuchma for his leadership on economic reform and encouraged him to work toward early completion of negotiations with the IMF on a standby program. He stressed the importance of Ukraine's reform measures and the United States' readiness to support Ukraine in their implementation.

President Clinton announced that the United States would provide $200 million in new assistance to Ukraine in Fiscal Year 1995. Of this amount, $103 million will finance technical and economic assistance activities. The remaining $97 million will provide balance of payments support, consisting of $72 million in an energy sector grant and $25 million in USDA concessional food credits, as provided in agreements signed by the two Governments during the State visit. When combined with $3 million of pharmaceuticals and other commodities from Fiscal Year 1994, the United States will provide $100 million in balance of payments support in the next few months to reinforce Ukraine's IMF program.

This United States economic support is in recognition of Ukraine's major initiative to launch a comprehensive economic reform program. This support is in addition to the $350 million in economic assistance committed to Ukraine in March 1994, the major part of which will take effect once reforms have begun. The Presidents reviewed the progress made in the implementation of economic assistance programs for Ukraine and agreed to work together to accelerate delivery and ensure the full disbursement of all current and previous commitments, as well as the effectiveness of these programs.

President Kuchma expressed appreciation for United States leadership in mobilizing international support for Ukraine, particularly the prompt United States response to the Ukrainian request for balance of payments support. Looking to the future, President Clinton reaffirmed United States commitments made at the Washington donor session and the Winnipeg G-7 conference in October and his intention to continue the United States' leading role in encouraging international support for Ukrainian reform.

The Presidents recognized the important contribution the private sector can make to Ukraine's economic prosperity through expanded trade and investment. President Clinton welcomed Ukraine's ratification of the bilateral investment treaty and noted that the Western NIS Enterprise Fund has now opened its offices in Kiev. President Kuchma expressed the hope that the U.S. Senate would ratify the treaty at an early date. The leaders emphasized the importance of privatization if expanded cooperation between American enterprises and an emerging private sector in Ukraine is to begin in earnest.

On November 21 President Kuchma and members of his government participated in an OPIC-sponsored business conference which reviewed investment opportunities in Ukraine. Both Presidents agreed that there was enormous potential for private sector cooperation in developing key sectors of the Ukrainian economy. They specified, in particular, agriculture and food processing; pharmaceuticals and medical equipment; energy, including fossil and environmentally sound and safe nuclear power; aerospace, consistent with international obligations; civil aviation; telecommunications; environment and defense conversion.

The two leaders noted that the first session of the Joint U.S.-Ukrainian Commission on Trade and Investment is meeting during the State visit to discuss ways of promoting business cooperation and removing barriers to expanded trade and increased investment in Ukraine. The Commission is discussing the tax, legal and regulatory changes that Ukraine will need to adopt to support private business activity. President Clinton recognized the special circumstances facing economies in transition, such as Ukraine's, which seek to expand export markets, and offered to consult with the U.S. Congress on appropriate ways of reflecting this in U.S. trade legislation. The Presidents noted that expanded trade will be critical to the success of Ukrainian economic reform and agreed to make the expansion of trade and investment a priority in their economic cooperation efforts.

The Presidents also agreed to work toward expanding economic cooperation within a multilateral framework and to promote Ukraine's integration into the global economy. President Clinton reaffirmed the United States' support for Ukraine's accession to the GATT/WTO, and noted that the United States is providing assistance to the Ukrainian government to support this process. The United States is also chairing the working group in Geneva overseeing Ukraine's accession.

The Presidents noted that the resolution of Ukraine's energy problems would have an important and positive impact on Ukraine's economic recovery. President Kuchma welcomed the United States' decision to provide part of its special balance of payments assistance in the form of an energy sector grant. Both leaders reviewed the progress that has been made in implementing cooperative programs aimed at the restructuring and reforming of Ukraine's energy sector and improving nuclear reactor safety. President Kuchma informed President Clinton of the recent agreement Ukraine reached with IAEA on the application of IAEA safeguards to all nuclear materials, except those for nuclear propulsion, utilized in Ukraine.

The Presidents agreed to continue to work together for the full implementation of the G- 7 Naples Action Plan, and recognized that this will require G-7 cooperation and assistance. President Clinton drew attention to the significant resource commitments made at Naples, Corfu and Winnipeg and to the importance of receiving early assurances that the Chornobyl reactors would be shut down in accordance with the G-7 Action Plan. President Kuchma assured President Clinton that Ukraine takes seriously the international community's concerns about the continued operation of the Chornobyl nuclear power plant. He expressed Ukraine's readiness to work with the G-7 nations in the implementation of the Naples Action Plan, noting that its successful implementation is connected with a series of measures, including preparing the closure of the nuclear reactors, minimizing the social impact on the plant's personnel, and ensuring that sufficient economically-priced electricity is available to meet Ukraine's domestic needs. He also stressed the importance that Ukraine places on improving the stability of the shelter installed over the damaged reactor. Both Presidents agreed on the need for further close work in the G-7/Ukraine Task Force to ensure the future closure of Chornobyl, as envisioned in the G-7 Action Plan, as an integral part of a comprehensive solution to Ukraine's energy problems.

Defense and Security

The Presidents expressed satisfaction with the accomplishments and pace of implementation of the January 14 Trilateral Statement signed by the Presidents of the United States, Ukraine, and the Russian Federation. In addition, they renewed their commitment to international efforts to reduce sharply the threat and proliferation of nuclear weapons.

President Clinton congratulated Ukraine on its decision to accede to the Treaty on the Non-Proliferation of Nuclear Weapons and the historic renunciation of nuclear weapons which it represents and reaffirmed the U.S. commitment to provide security assurances to Ukraine in connection with its accession to the NPT by signing a Memorandum on Security Assurances on the margins of the Budapest CSCE Summit.

The Presidents look forward to early entry into force of the START-I treaty and agreed that the Lisbon Protocol Signatories should exchange instruments of ratification on the margins of the Budapest CSCE Summit. Both Presidents reiterated their views that the START- I treaty would not only serve the mutual interests of both countries, but also would serve to strengthen global peace and stability.

Both Presidents agreed to work closely to ensure the timely implementation of Nunn-Lugar programs intended to facilitate the dismantlement of strategic offensive arms and the security of nuclear weapons, achieve our joint non-proliferation objectives, and help in the conversion of Ukraine's defense industries. The Presidents agreed on the importance of identifying as soon as possible programs of assistance under the Nunn-Lugar program, using the $75 million allocated to Ukraine out of Fiscal Year 1995 Nunn-Lugar funds. Both acknowledged the progress that had been made to date, noting in particular the utility of U.S. deactivation assistance, procurement of missile fuel storage tanks and the imminent completion of a U.S.-Ukraine communications link. The Presidents also recognized the significant contribution of the fourteen Western countries and the European Union in providing $234 million of dismantlement and related assistance for Ukraine.

The Presidents discussed the evolving European security structure. They agreed that this process should be managed in a manner that strengthens the stability and security of all nations of Europe. As a tangible example of Ukraine's overall importance in European security and the U.S. commitment to expanded Ukrainian cooperation with NATO, President Clinton announced that the United States would make funds available to Ukraine under the Warsaw Initiative to support Ukrainian participation in the Partnership for Peace. The funds will contribute to Ukraine's ability to promote the objectives of the Partnership.

The two leaders announced that the two countries had agreed to move forward with a $600,000 International Military Training and Education Program to assist in the professional development of Ukraine's armed forces. The Presidents also pledged to continue to expand military and defense contact programs designed to assist Ukraine in the restructuring of its defense establishment which is now under civilian leadership for the first time. In addition, the sides announced that Ukraine will host a U.S.-Ukraine combined peacekeeping training exercise late next spring. In the area of defense industry conversion, President Clinton informed President Kuchma that the United States would continue to provide assistance to U.S.-Ukraine joint ventures and would seek new partners for the important work of defense conversion.

The Presidents noted the importance of proceeding with defense industry conversion priorities and the need to expand opportunities for trade and investment in high technology industries. They also underscored the importance of the bilateral U.S.-Ukraine Memorandum of Understanding on the Transfer of Missile Equipment and Technology signed last May 13. The Presidents also recognized the importance of broader international cooperation in ensuring reliable control over exports of sensitive materials and technology. President Clinton expressed the hope that Ukraine would become a member of the MTCR at an early date and reiterated that the U.S. would support Ukraine in achieving this goal. They agreed to work together toward Ukraine's full participation in a successor regime to COCOM. President Clinton was pleased to note that a Science and Technology Center, funded by the United States and other donors, will soon begin operations in Ukraine and that this would assist Ukraine in redirecting the work of former defense scientists and engineers to civilian purposes.

Diplomatic Endeavors

Consistent with the new stage of bilateral relations, the Presidents also underscored the importance of ensuring that the diplomatic missions of both countries be fully capable of conducting their operations without hindrance. With this in mind, the Presidents announced the exchange of diplomatic notes to lift employment restrictions on diplomatic personnel and their families. President Clinton also used this occasion to welcome Ukraine's newly appointed Ambassador to the United States, Yuriy Shcherbak, to Washington, D.C.