House Hearing Reveals U.S. Aid Focused on Georgia, Moldova and Ukraine
In an effort to steer them further away from Russia’s growing orbit, the United States plans to focus its aid to Europe and the former Soviet Union on Georgia, Moldova and Ukraine, according to Daniel Rosenblum, the State Department's Coordinator of U.S. Assistance to Europe and Eurasia. The news came from a June 25thhearing of the House Foreign Affairs Committee's Subcommittee on Europe, Eurasia and Emerging Threats.
In the administration’s planned aid budget for Fiscal Year (FY) 2015, “just over one third” of the entire request for Europe and Eurasia goes to those three countries, said Daniel Rosenblum at the hearing entitled “Reviewing the Administration's FY 2015 Budget Request for Europe and Eurasia.” “We have re-focused many of our assistance programs and instituted others to support Georgia, Moldova, and Ukraine as they prepare to sign and then implement” free trade and association agreements with the European Union, Rosenblum said.
On June 27, the three countries formally signed agreements with the European Union (EU) in Brussels to become “associate members” of the EU and to be part of a “deep and comprehensive free trade area.” It was the plan for Ukraine to sign such an agreement that precipitated the current crisis between Russia and the West: former president Viktor Yanukovych had agreed to sign the EU deal, but backed out at the last minute under apparent Russian pressure. That prompted the street protests that eventually forced Yanukovych to step down and for Russia-backed counter-protests to emerge in Crimea and southeastern Ukraine.
“In light of the current crisis in Ukraine, we are redoubling our efforts in FY 2015 to fulfill the objectives that have been at the core of our mission since 1989: working toward the goal of a ‘Europe whole, free and at peace’ and fostering stable, prosperous, free-market, and pluralistic democracies across the region,” Rosenblum said.
The State Department’s updated FY 2015 request for all of Europe and Eurasia is $625.3 million, actually a decrease of 17 percent from FY 2013. But in addition to the refocusing of aid toward the three EU aspirant countries, the current aid package, which was worked out before the crisis began, may see further tweaking, Rosenblum added. “Recent political upheaval and ongoing economic instability in Ukraine will likely require adjustments to planned uses – and potentially overall levels – of FY 2015 funding,” he said. In the case of Georgia, aid will focus on getting the country to meet EU safety standards as well as “convening high level dialogues on trade and investment; and exploring ways to use assistance to further enhance ... energy security through diversification and greater efficiency.”
There are also substantial security assistance efforts underway for the three countries (along with the Eastern European members of NATO), though relatively few details have emerged about their content. According to the administration’s FY 2015 budget request and data collected by the Security Assistance Monitor, an estimated $17.5 million would go to Georgia, $4.2 million to Moldova and $8.7 million to Ukraine. In early June, the White House said: “In light of events since the budget submission, especially Russia’s illegal actions in Crimea and efforts to destabilize parts of Eastern Ukraine, we clearly need to address a broader set of security goals. Earlier this month, the President announced a new $1 billion European Reassurance Initiative which will include substantial programs to build partner capacity of close friends like Ukraine, Moldova, and Georgia, and a significant effort to reassure NATO allies.”
While the House hearing focused heavily on Ukraine, administration officials' written testimony did give additional information about FY 2015 plans for aid to the Caucasus and Central Asia as well. Security assistance for the region is slated to decline by an even greater proportion than aid overall, down 26 percent from FY 2013, Rosenblum said. This parallels recent data indicating that the Defense Department, too, has significantly decreased its military aid to Central Asia.
By contrast, economic aid to Central Asia will increase by eight percent from FY 2013 to FY 2015, focused on implementing the United States’ “New Silk Road” initiative, which Rosenblum also framed in geopolitical terms. “In Central Asia, we are promoting access to regional markets as one prong of a multi-faceted effort to bolster these countries’ sovereignty and ability to make their own choices,” he said, using the standard Washington language for helping wean these countries off their Soviet-era economic dependence on Russia. “The New Silk Road initiative builds regional connectivity through energy, transport, trade, and people-to-people linkages from Central Asia through Afghanistan to South Asia as a means to build security, stability, and prosperity in the entire region,” he added.
Aid for democracy promotion in Central Asia, meanwhile, is slated to decrease about five percent over the same period. “Despite economic growth in some Central Asian countries, many of these countries suffer from restrictive social policy and corrupt institutions. These challenges underscore the importance of long-term programming that captures nascent opportunities when they arise. We have seen some progress in the Kyrgyz Republic in this area, an example that has become important for the region in terms of potential further development,” Rosenblum said.