THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release June 17, 1992
U.S. ASSISTANCE TO RUSSIA
The U.S. government has undertaken a historic effort to provide support
for the democratic changes taking place in Russia. While the ultimate
responsibility for the success of the reform program can rest only with
the government and people of Russia, the U.S. can, and is, doing much to
help. Our strategy is to offer, as part of an internationally coordinated
effort, humanitarian, technical, and macroeconomic assistance designed to
help the Russian people establish democratic forms of government and free
economies fully open to trade and investment with Western partners.
Humanitarian Assistance
-- The U.S. completed twenty-four flights with an estimated
1200 tons of food and 100 tons of medical supplies to Russia
under Operation Provide Hope Phase I. Operation Provide
Hope Phase II is currently delivering about 16,000 tons of
surplus Department of Defense food and 262 tons of medical
supplies to nine Russian Cities.
-- The U.S. has shipped $12.3 million in medical assistance
under the President's medical Initiative through Project
Hope, a private voluntary organization.
-- Under the Food for Progress Program, the U.S. Department of
Agriculture (USDA) has signed agreements with five private
voluntary organizations to deliver approximately $90 million
worth of commodities (including transportation) to Russia.
USDA has signed an agreement with the Government of Russia
to provide a further grant of $34 million worth of butter,
which will be sold in Russian markets. As agreed with the
Government of Russia, the proceeds from the sales will be
used to provide support for humanitarian assistance.
-- Working with our allies, the U.S. will be prepared to
respond to additional requests for emergency humanitarian
assistance in the coming months should that need arise.
Macroeconomic Assistance
-- The U.S. is participating in a $24 billion multilateral
financial assistance program to support Russia's economic
reform program. The U.S. share estimate of this package for
calendar year 1992 is approximately $4.5 billion. This
includes $900 million as the U.S. share in the international
financial institutions efforts (roughly 20%); $1.5 billion
for a currency stabilization fund for Russia (up to $3
billion could be made available to include stabilization
funds for other new independent states); and approximately
$2.1 billion in bilateral assistance (on a disbursements
basis).
-- Initiation of most of these activities, including the
stabilization fund and financing from the IMF and World
Bank, will depend upon the conclusion of a stand-by
agreement between the Russian government and the IMF.
-- U.S. contributions will come both through multilateral
assistance efforts through the international financial
institutions, and through bilateral U.S. programs. For
example, the President is seeking approval from Congress of
a $12.3 billion increase in the IMF quota, allowing it to
expand its leading capabilities.
Credit Guarantees
-- USDA has allocated $3.75 billion in CCC Credit Guarantees to
the former Soviet Union for the purchase, mostly by Russia,
of almost 25 million tons of agricultural products. An
additional $600 million in CCC Credit Guarantees for Russia
was announced by the President on April 1.
-- EXIM financing has been made available: to date 9 export
financing transactions worth $185 million have been approved
and EXIM has reached agreement in principle on financing for
U.S. oil and gas equipment and services. EXIM is also
engaged in discussions with the Government of Russia
concerning support for $200 million in U.S. exports in the
fields of environment and nuclear safety. EXIM estimates
financing of $500 million to $1 billion will be approved
through FY 93.
-- An OPIC agreement has been signed and OPIC has approved one
Russian project worth $159 million over several years.
Technical Assistance
-- The Administration has requested $620 million in new
appropriations for American humanitarian and technical
assistance for FY 92 and FY 93 for the former Soviet Union.
This funding request will support implementation of the
Freedom Support Act. In the meantime, the Administration
has initiated assistance programs with $85 million
reprogrammed specifically for this purpose.
-- The U.S. Government is prepared to spend an additional $400
million on projects related specifically to destruction of
nuclear weapons and countering nuclear weapons
proliferation. Some of these funds will be available for
employment of scientists from the former Soviet Union.
Toward this end we have committed $25 million to establish
an International Science and Technology Center in Russia.
-- We have sent defense conversion advisers to Nizhny Novgorod
and will be sending advisors to other Russian cities within
the coming months.
-- We have begun work with the International Finance Corporation to run
privatization auctions in three cities in Russia and Ukraine. These
auctions will be based on the recent successful auctions in Nizhny
Novgorod, and will be used particularly to sell the small and medium
retail businesses in each city.
-- Agricultural Assistance: USDA plans to establish a model agricultural
farm near St. Petersburg and will provide experts to establish
private wholesale food markets in Moscow. AID plans to send
specialists in post-harvest loss and feed storage. The majority of
the 1500-1800 U.S. volunteers in the Farmer-to Farmer Program will be
placed in Russia.
-- The following programs are also underway: Special American
Business Initiative (SABIT) will provide training
internships for Russian scientists and managers (13 have
been trained so far); International Executive Service Corps
will provide private sector advisors; 100 Peace Corps
volunteers are in training for October placement; a resident
housing adviser is on the ground in Moscow; a U.S.-Russia
Children's Health Partnership began in May; an energy
efficiency team will install energy-saving equipment in
Moscow this fall.
-- Pharmaceutical production assistance will be provided
through commodity, equipment and short-term technical
assistance activities to provide a quick fix for plants
producing measles, polio and DPT vaccines. This will bring
production of two of these vaccines up to 100% of their
previous production for consumption inside Russia.
-- Nuclear Safety: The U.S. announced at the Lisbon
Coordinating Conference its intention to provide $25 million
dollars in support of nuclear reactor safety in the former
Soviet Union. The initiative's objective is to improve the
operating safety of Soviet-designed nuclear power plants.
It will emphasize improved safety procedures, appropriate
safety upgrades, and operator training through the
establishment of regional training centers in Russia and
Ukraine.
-- Other Technical Assistance Programs in planning include:
Coal Mine Safety, Rule of Law, Public Policy Training,
Democratic Initiatives, Legal Advisors, and Investment
Promotion.