Ukraine: Current Issues and U.S. Policy

Ukraine: Current Issues and U.S. Policy

After a failed effort to violently disperse pro-European Union protests, the government of Ukrainian President Viktor Yanukovych collapsed on February 21, 2014. The Ukrainian parliament approved a new pro-reform, pro-Western government on February 27. Russia has condemned the new government in Kyiv as illegitimate and responded by sending troops to seize Ukraineâ€™s Crimea region. Ignoring international condemnation, Russia annexed Crimea on March 18. In April and May 2014, armed men seized government buildings in several cities in eastern Ukraine, mainly in the Donbas region. On May 11, the separatists held â€œreferendumsâ€ on self- rule, after which they proclaimed their independence from Ukraine. U.S. and Ukrainian officials charge that Russian intelligence officers in Ukraine are coordinating the unrest and note that the separatists have received men and equipment from Russia. On May 25, Petro Poroshenko, a pro- Western billionaire businessman, was elected as President of Ukraine.

Ukraineâ€™s new government faces serious economic problems. Ukraine has long-standing problems in attracting foreign investment, in part due to rampant corruption and other shortcomings in the rule of law. In May 2014, the Ukrainian government received the first installment of a $17 billion IMF loan. The European Union has unveiled an 11.175 billion Euro (about $15.5 billion) aid package for Ukraine. The EU has also imposed sanctions on 61 persons from Ukraine and Russia held responsible for undermining Ukraineâ€™s sovereignty and territorial integrity, as well as two Crimean companies.

The Administration requested and received funding from Congress for $1 billion in loan guarantees for Ukraine. The Administration says that the United States is providing over $184 million in aid to Ukraine this year (not including the $1 billion loan guarantee) to help Ukraine carry out political and economic reforms. The Administration strongly condemned Russianâ€™s annexation of Crimea. In March the Administration announced asset freezes against 16 senior Russian officials, four wealthy figures from Putinâ€™s â€œinner circle,â€ and one Russian bank. In April, the Administration added seven senior Russian officials and 17 companies. President Obama has warned that the United States and its allies may impose additional sanctions on Russia unless it de-escalates the conflict in Ukraine.

Congressional action has focused on providing assistance to the new Ukrainian government and supporting sanctions against Russia for its occupation of Crimea. On March 27, the Senate approved an amended version of H.R. 4152 by voice vote. The Senate-passed version of H.R. 4152 requires the U.S. government to assist Ukraine to recover assets stolen by the previous regime through corruption; authorizes $50 million in U.S. aid in FY2015 to help Ukraine carry out political and economic reforms; authorizes $100 million in security assistance for Ukraine and other Central and Eastern European countries for FY2015-FY2017; and requires the President to impose visa bans and asset seizures against persons in Ukraine and Russia who are responsible for violence or undermining the peace, security, stability, sovereignty, or territorial integrity of Ukraine. The bill also â€œencouragesâ€ the President to impose these sanctions on Russian figures responsible for corruption in Russia and requires an annual report by the Secretary of Defense on military and security developments involving the Russian Federation.

On April 1, the House passed the Senate-amended version of H.R. 4152 by a vote of 378-34. On April 3, President Obama signed H.R. 4152 into law, as well as S. 2183, a related bill requiring Radio Free Europe-Radio Liberty and Voice of America to increase broadcasting in eastern Ukraine, Crimea, and Moldova.
Country USA
Manufacturer Congressional Research Service
Binding Kindle Edition
ReleaseDate 2014-07-08
Format Kindle eBook

Country	USA
Manufacturer	Congressional Research Service
Binding	Kindle Edition
ReleaseDate	2014-07-08
Format	Kindle eBook

Ukraine: Current Issues and U.S. Policy

You might also like...