    [Weekly Compilation of Presidential Documents Volume 35, Number 25 (Monday, June 28, 1999)]
    [Pages 1164-1165]
    [Online from the Government Publishing Office, www.gpo.gov]

    <R04>
    United States-European Union Summit Statement on Ukraine

    June 21, 1999

        Ukraine's successful transition to a democratic and market oriented
    country, secure within its borders, is crucial for long-term stability
    in Central and Eastern Europe and the continent as a whole. Helping
    Ukraine achieve these objectives is one of the top priorities for U.S.-
    EU cooperation. The EU and the U.S., as Ukraine's largest donors, share
    a strategic interest in the successful evolution of Ukraine toward a
    prosperous economy and stable democracy and in bringing Ukraine more
    fully into Euroatlantic structures. The EU and the U.S. welcome the
    progress made in the realization of their strategic partnerships with
    Ukraine and look forward to a further deepening of these relationships.
    We commend Ukraine for the important progress it has achieved in recent
    months, in particular the economic reform measures which have allowed
    Ukraine to return to compliance with its IMF program. We urge President
    Kuchma to seize the opportunity presented by the renewal of the IMF
    program to push forward his reform agenda, including privatization of
    large industries, agricultural and energy sector reform, restructuring
    of the financial sector, as well as improvements in public
    administration. We encourage Ukraine in its efforts to accede to the WTO
    and will support decisive action in establishing a favorable environment
    for foreign investments and in removing key obstacles to trade.

    [[Page 1165]]

        We note Ukraine's progress on democracy. However, we call on
    Ukraine's leaders to ensure a free and fairly contested presidential
    campaign leading up to the October 31 presidential election in
    compliance with OSCE and Council of Europe standards. A free and fair
    election will be an important step in the transition of democracy and
    demonstrate that it is taking firm root in Ukraine. We express our
    continued support for efforts to develop the rule of law and institute
    an effective presidential electoral process. In this context, we
    emphasize the need to protect the freedom of the media. These are
    fundamental underpinnings to democracy in Ukraine. In that regard, we
    consider Ukraine's recent decision to retain a continued OSCE presence
    in Ukraine another important signal of Ukraine's determination to meet
    its commitments to democratization and to Euroatlantic cooperation. We
    support the continued efforts of Ukraine to play a responsible role in
    relations with neighboring states and within the larger transatlantic
    relationship. We welcome Ukraine's commitment to regional cooperation as
    well as its contributions to find solutions to the conflicts in
    Transnistria and Kosovo.
        As Ukraine continues its transition to democracy and a free market,
    we recognize the social problems arising from necessary social
    adjustment and remain committed to joint U.S.-EU efforts that bolster
    Ukraine. We strongly encourage Ukraine's efforts to implement additional
    power sector reforms, particularly increased cash collections and
    strategic privatization of energy distribution companies, as crucial
    components of the energy investment strategy embodied in the
    G-7/Ukraine Memorandum of Understanding on Chernobyl Closure. We
    reiterate our commitment to the closure of Chernobyl in the year 2000.
    We reaffirm our commitment to assist Ukraine in securing the financing
    necessary to strengthen its energy sector, facilitate Chernobyl closure
    and in securing the remaining financing of the necessary stabilization
    of the Chernobyl sarcophagus.
        We applaud the initial project under the U.S.-EU civil society
    program to support Ukrainian non-governmental organizations working to
    build democracy in Ukraine, as well as the agreement to launch the Kiev
    Regional Environmental Center sponsored jointly by the EU and the U.S.
    We look forward to inaugurating our other joint projects. We are
    actively considering the possibility of launching a joint project on
    public health issues in Ukraine. We have illustrated our common view on
    the importance of economic reform, as well as our commitment to further
    Ukraine's economic transition, through our joint demarche to President
    Kuchma and Rada Speaker Tkachenko.

    Note: An original was not available for verification of the content of
    this joint statement.