BRAMA, September 22, 2000, 11:00am EDT

Kaptur hails resolution of US business claims in Ukraine
-- Ukraine now poised to be eligible for US development aid

Washington, D.C. – After a private meeting today with Ukrainian Minister of Foreign Affairs Borys Tarasyuk and Ukraine’s Ambassador to the United States Kostyantyn Gryschchenko, Congresswoman Marcy Kaptur (D. —Ohio), Co-Chair of the Ukrainian Caucus in the House of Representatives, hailed action by President Leonid Kuchma to settle business disputes involving US global companies Pioneer and Land O’Lakes dating back to late 1995. "The resolution of these difficulties will enable more normal relations between our countries," said Kaptur. "Further, our U.S. Department of Agriculture can now consider how to use its developmental assistance to help Ukraine continue on its road of economic improvement," added Kaptur, who serves as Ranking Member of the Appropriations Subcommittee on Agriculture.

"Today, the news we have received from Ukraine is excellent. I am so thrilled that at long last we have resolved these serious obstacles to progress", said Congresswoman Kaptur. "For the past three years, I have been urging Ukrainian officials to understand that the U.S. could not extend the full weight of our assistance to Ukraine until the missing dollars were repaid. My pleas were unheard until I made a personal appeal to President Kuchma in December 1999 during his visit to Washington, and to Prime Minister Yuschenko early this year. A few months ago, Ambassador Gryschchenko graciously joined me in meeting with U.S. Secretary of Agriculture Dan Glickman to hear for himself from Secretary Glickman how seriously these matters were viewed by our Congress and the Executive Branch of our government. They had to be settled before further U.S. aid could resume. Ambassador Gryschchenko promised to take this message back to President Kuchma, and now these two able gentlemen have made it possible for progress to occur."

In 1995, the US Department of Agriculture (USDA) had entered in a food aid agreement with Land O’Lakes under which USDA donated 20,000 tons of soybeans to Land O’Lakes. In turn, the commodity was sold in the Ukraine. The local currency obtained was to be used to assist Ukrainian agriculture. This did not in fact occur, nor was Land O’Lakes reimbursed the approximately $3 million dollars due. The U.S. Department of State and USDA worked extensively, both in Kiev and in Washington, with Ukrainian government officials to obtain payment. While promises to pay had been made, those promises were not kept. Earlier this year, USDA had offered to settle the issue for a payment of just about $1 million, with a portion immediately, and the balance over time under an agreed-upon payment schedule. As of today, a satisfactory payment has been made, and a repayment schedule for the balance has been signed. Kaptur stated, "We fully expect the terms of this agreement to be honored."

"Agriculture is Ukraine’s historic strength. Its land is precious and rich," said Congresswoman Kaptur. "The people of Ukraine are not afraid of work, and heaven knows that they do not shy away from challenges. If we are now in a position to resume food aid that can be monetized (sold in Ukraine so as not to disrupt national markets, with proceeds used in-country for economic, social and educational purposes), we can begin to design economic development initiatives of rural credit, infrastructure improvements, small business development and other needed social, humanitarian and educational initiatives that can help the people of Ukraine prosper. I have pledged to Ambassador Gryschchenko that I am committed to working with him and Ukrainian authorities to design a workable and transparent initiative, and to be a partner with the Ukrainian nation in helping its proud people succeed again."

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