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Submitted Pursuant to Section 104 of January 2001 the FREEDOM Support Act (Public Law 102-511) FOREWORD This report describes U.S. Government activities that supported reform in the twelve New Independent States (NIS) of the former Soviet Union during fiscal year (FY) 2000. In FY 2000, the U.S. Government continued to redirect its NIS assistance activities away from technical assistance to central governments and towards support to non-governmental organizations, small and medium-sized private businesses, independent media, and reform- oriented regions and cities. Exchange programs and partnerships between U.S. and NIS organizations were again an increasingly important part of the U.S. assistance effort in the NIS. FY 2000 also witnessed a significant increase in U.S. assistance aimed at reducing threats from former Soviet weapons of mass destruction, preventing weapons proliferation and promoting regional stability. While assistance is only one aspect of the U.S. relationship with the NIS, it is a critical element of our engagement with this strategically important region of the world. In this report, we attempt to provide as comprehensive a look as possible at the full range of these assistance activities. Ambassador William B. Taylor, Jr. Coordinator of U.S. Assistance to the NIS U.S. Government Assistance to and Cooperative Activities with the New Independent States of the Former Soviet Union FY 2000 Annual Report Prepared by the Office of the Coordinator of U.S. Assistance to the NIS Submitted Pursuant to Section 104 January 2001 of the FREEDOM Support Act (Public Law 102-511) FREQUENTLY USED ABBREVIATIONS A&E’s audits and examinations ABA/CEELI The American Bar Association’s Central and East European Law Initiative ACV armed combat vehicle BW biological weapons CA AEF Central Asian - American Enterprise Fund CTR Cooperative Threat Reduction Program CW chemical weapons DARPA Defense Advanced Research Projects Agency DEF Defense Enterprise Fund DoD U.S. Department of Defense DOE U.S. Department of Energy DTRA Defense Threat Reduction Agency E&E USAID’s Bureau for Europe and Eurasia EBRD European Bank for Reconstruction and Development ECA Bureau of Educational and Cultural Affairs (formerly known as USIA or USIS) EPA U.S. Environmental Protection Agency ETRI Expanded Threat Reduction Initiative EU European Union Eximbank U.S. Export-Import Bank FMF Foreign Military Financing FSA FREEDOM Support Act* FY fiscal year GDP gross domestic product IAS International Accounting Standards IBRD International Bank for Reconstruction and Development ICBM intercontinental ballistic missile IDP internally displaced person IFIs international financial institutions IMET International Military Education and Training IMF International Monetary Fund IPR intellectual property rights m million MoD Ministry of Defense MOU memorandum of understanding MPC&A material protection, control and accounting MT metric ton MVD Ministry of Internal Affairs NATO North Atlantic Treaty Organization NGO non-governmental organization NIS New Independent States of the former Soviet Union NPP nuclear power plant NPT Nuclear Non-Proliferation Treaty OPIC Overseas Private Investment Corporation ODIHR OSCE Office of Democratic Institutions and Human Rights OSCE Organization for Security and Cooperation in Europe PCV Peace Corps volunteer P.L. Public Law PSA production-sharing agreement PVO private voluntary organization RI Regional Initiative RFE Russian Far East SLBM submarine-launched ballistic missile SMEs small to medium-sized enterprises SNAE strategic nuclear arms elimination S/NIS/C Office of the Coordinator of U.S. Assistance to the NIS SOAE strategic offensive arms elimination SSBN ballistic missile submarine START Strategic Arms Reduction Treaty TACIS The European Union’s technical assistance program for the NIS TDA U.S. Trade and Development Agency TUSRIF The U.S.-Russia Investment Fund UNHCR United Nations High Commissioner for Refugees USAID U.S. Agency for International Development USDA U.S. Department of Agriculture WFP United Nations World Food Program WMD weapons of mass destruction WNISEF Western NIS Enterprise Fund WTO World Trade Organization *Freedom for Russia and Emerging Eurasian Democracies and Open Markets Support Act TABLE OF CONTENTS I. INTRODUCTION 1 Program Overviews 2 Financial Summary 7 Structure of the FY 2000 Annual Report 7 II. COUNTRY ASSESSMENTS 8 Armenia 8 Azerbaijan 22 Belarus 31 Georgia 36 Kazakhstan 49 Kyrgyzstan 59 Moldova 65 Russia 73 Tajikistan 92 Turkmenistan 99 Ukraine 106 Uzbekistan 120 III. PROGRAM ASSESSMENTS USAID - BUREAU FOR EUROPE AND EURASIA 129 Economic Restructuring Programs 130 Democratic Transition Programs 148 Social Transition Programs 155 Cross-Cutting Programs and Special Initiatives 162 TRAINING, EXCHANGE AND EDUCATIONAL REFORM PROGRAMS 164 U.S. Department of State - Bureau of Educational and Cultural Affairs (ECA) 164 USAID Global Training for Development (GTD) 179 Library of Congress - Russian Leadership Program 183 U.S. Department of Commerce - Special American Business Internship Training (SABIT) Program 185 U.S. Department of Agriculture - Cochran Fellowship Program 186 U.S. Department of Agriculture - Faculty Exchange Program (FEP) 188 DEMOCRACY PROGRAMS 190 U.S. Department of State - Internet Access and Training Program 190 Bureau of European Affairs 191 Office of International Information Programs 192 Bureau of Democracy, Human Rights and Labor (DRL) 193 Bureau of International Narcotics & Law Enforcement Affairs (INL) 194 U.S. Department of Justice - Office of Overseas Prosecutorial Development and Training 196 TRADE AND INVESTMENT PROGRAMS 199 U.S. Export-Import Bank (Ex-Im Bank) 199 Overseas Private Investment Corporation (OPIC) 200 U.S. Trade and Development Agency (TDA) 201 Enterprise Funds 202 U.S. Department of Commerce - Business Development Committees (BDCs) 207 BUSINESS AND ECONOMIC DEVELOPMENT PROGRAMS 209 U.S. Department of Commerce - Business Information Service for the NIS (BISNIS) 209 U.S. Department of Commerce - American Business Centers (ABCs) 211 U.S. Department of Commerce - Commercial Law Development Program (CLDP) 212 U.S. Securities and Exchange Commission (SEC) 213 U.S. Department of the Treasury - Technical Assistance 214 USAID Farmer-to-Farmer (FTF) Program 218 U.S. Department of Transportation 219 SECURITY PROGRAMS 221 U.S. Department of Defense - Cooperative Threat Reduction (CTR) Program 221 U.S. Department of Defense - Arctic Military Environmental Cooperation 238 U.S. Department of Defense - Counterproliferation Programs (DoD/FBI, DoD/U.S. Customs) 239 U.S. Departments of Defense and State - Warsaw Initiative / Partnership for Peace 241 U.S. Departments of Defense and State - International Military Education and Training (IMET) 243 SECURITY PROGRAMS (continued) U.S. Department of State - Science Centers 243 U.S. Department of State - Redirection of Biotechnical Scientists 246 U.S. Department of Agriculture - Collaborative Research Program 247 U.S. Department of Health and Human Services - Biotechnology Engagement Program (BTEP) 249 Civilian Research and Development Foundation (CRDF) 250 U.S. Department of State - Export Control and Related Border Security Assistance 254 U.S. Department of State / U.S. Customs Service - Georgia Border Security & Law Enforcement Program 257 U.S. Department of State - Nonproliferation and Disarmament Fund (NDF) 259 U.S. Department of State - Anti-Terrorism Assistance (ATA) 260 U.S. Department of State - Military Relocation Program 261 U.S. Department of State - Peacekeeping Operations (PKO) 262 U.S. Department of Energy - Nuclear Material Protection, Control and Accounting (MPC&A) 263 U.S. Department of Energy - Nuclear Export Control Assistance / Second Line of Defense 265 U.S. Department of Energy - Warhead and Fissile Material Transparency Program 267 U.S. Department of Energy - Initiatives for Proliferation Prevention (IPP) 267 U.S. Department of Energy - Nuclear Cities Initiative (NCI) 269 U.S. Department of Energy - Reduced Enrichment for Research and Test Reactors (RERTR) 271 U.S. Department of Energy - Arms Control and Nonproliferation Programs 271 U.S. Department of Energy - Fissile Materials Disposition Program 271 ENERGY AND ENVIRONMENTAL PROGRAMS 274 U.S. Department of Energy - Nuclear Reactor Safety Programs 274 U.S. Nuclear Regulatory Commission (NRC) - Nuclear Safety Regulation Program 275 U.S. Environmental Protection Agency (EPA) 276 U.S. Department of the Interior 279 SOCIAL -SECTOR AND HUMANITARIAN PROGRAMS 281 U.S. Department of Health and Human Services - U.S.-Russia Health Committee 281 U.S. Department of Agriculture - Food Assistance Programs 283 U.S. Department of State - Bureau of Population, Refugees and Migration 284 Coordinator’s Office Humanitarian Assistance Programs 286 CROSS-SECTORAL / OTHER PROGRAMS 300 Eurasia Foundation 300 Peace Corps 302 U.S.-Israel Cooperative Development Program (CDP) 307 U.S.-Israel Cooperative Development Research Program (CDR) 307 U.S. Support for International Financial Institutions 308 Program for Research and Training on Eastern Europe and the NIS (Title VIII) 311 IV. ASSESSMENTS OF PROGRESS IN MEETING THE STANDARDS OF SECTION 498A OF THE FOREIGN ASSISTANCE ACT OF 1961 313 Armenia 313 Azerbaijan 318 Belarus 323 Georgia 329 Kazakhstan 334 Kyrgyzstan 342 Moldova 347 Russia 352 Tajikistan 364 Turkmenistan 370 Ukraine 374 Uzbekistan 380 V. EVALUATION OF THE USE OF “NOTWITHSTANDING” AUTHORITY 386 VI. ASSESSMENTS REQUIRED BY THE SILK ROAD STRATEGY ACT OF 1999 388 APPENDIX:
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