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USAID/Russia 

Operational Plan 

FY 2006 

June 13, 2006 
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Please Note: 

The attached RESULTS INFORMATION is from the FY 2006 Operational Plan and was assembled 

and analyzed by the country or USAID operating unit identified on the cover page. 

The Operational Plan is a "pre-decisional" USAID document and does not reflect results stemming 

from formal USAID review(s) of this document. 

Related document information can be obtained from: 

USAID Development Experience Clearinghouse 

8403 Colesville Road, Suite 210 

Silver Spring, MD 20910 

Telephone: (301) 562-0641 

Fax: (301) 588-7787 

Email: docorder@dec.cdie.org 

Internet: http://www.dec.org 

Portions released on or after July 1, 2006 
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Program Performance Summary FY 2005: I. Democratic Reform 

 

A. Country Situation: 

 

Democratic reform suffered significant setbacks in 2005. At the same time there were some positive 

developments and signs of hope. Grassroots activism and popular will to participate in key decisions 

affecting day-to-day life were on vivid display in the strong show of popular pressure in January that 

succeeded in significantly softening the Putin Administration's aggressive cutbacks on entitlement 

programs. Regional media continued to grow, despite political pressures. NGOs spoke out boldly in 

defense of their sector’s interests. Regional governments increasingly turned to NGOs for provision of 

social services. President Putin explicitly acknowledged the importance of civil society and the valuable 

role NGOs could play. Governors in regions all over Russia began in earnest to carve out pilot grantmaking programs to enable NGOs to share in providing essential educational, health, and other social 

services -- a significant step forward in consolidating a constructive partnership between regional 

government and civil society. Yet at the same time high-profile prosecution and conviction of the head of 

Yukos, the threatened disbarment of the Yukos attorneys, and accusations of illegal property transactions 

launched against a former Prime Minister after he announced interest in running for President, all raised 

concern about the manipulability of the legal system. In addition, the state continued to ratchet up its 

control of the national broadcast media and efforts were undertaken to fast-track the introduction of 

legislation that would squelch non-governmental organizations (NGOs). According to Freedom House's 

2005 report, Russia continued to lose ground on overall democratic reform, falling from an overall score 

of 4.96 (where 7.00 is the worst possible score) in 2003, to 5.25 in 2004; and falling slightly further to 5.61 

in 2005. Reporters Without Borders gave Russia only a slightly improved mark, ranking it 138th of 167 

countries in press freedom in 2005 - a scant two point increase over 2004, when Russian journalists 

mourned the sensational murder of Forbes Editor Paul Khlebnikov. The Parliament enacted a law 

creating the "Public Chamber," an official body hand-picked by the President and designated to speak on 

behalf of Russia's NGOs and civil society, advise President Putin on all draft laws affecting civil society, 

and call journalists to account for "excessive or inappropriate media reporting." This year also brought 

new laws that made political party registration more difficult and abolished gubernatorial elections in 

Russia's 89 regions, replacing elections with presidential appointment. Jury acquittals were increasingly 

overruled on appeal, and human rights advocates struggled with repeated accusations-often attributed by 

the media to FSB officials- of being foreign-funded agents. 

 

B. U.S. Assistance Priorities: 

 

In democratic reform, the priorities in 2005 were to encourage the positive trend in social service delivery 

partnerships between regional governors and NGOs; strengthen the independence of the judiciary and 

increase lawyers' and NGOs effectiveness in protecting the rights of disadvantaged citizens; while also 

protecting the independence of public debate and media coverage of social and political issues and 

supporting efforts to monitor elections. Much of this was accomplished through the strengthening of 

NGOs capacity and deepening civic action movements. 

 

C. Program Performance: 

 

Regional USAID-funded NGO networks in Siberia, the Russian Far East (RFE), Southern Russia, and the 

Volga Region all established new competitive grant-making programs jointly with various regional 

governors in their respective sections of the country. In Siberia's 11 regions alone, USAID partners 

launched over 20 grant competitions with regional government funding. Krasnoyarsk, for example, 

programmed over $500,000 in public funds through NGOs in 2005. Policy research institutes ("think 

tanks") supported by USAID grants prepared more than 90 analyses that were incorporated into 

legislation and government policy initiatives. Twelve USAID-supported coalitions of business 

associations now unite more than 150 associations nationwide, and these groups won at least five 

legislative changes in various Russian regions in 2005 alone. USAID grantees working with independent 

Russian television, newspaper, and radio outlets continued strong professional training efforts (not only in 

journalistic techniques but also in business management) and promoted significantly improved news, 

social, and documentary programming. USAID partners also helped to create the conditions in which 
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Russia's media lawyers formed Russia's first media lawyers' association to help protect news outlets from 

selective law enforcement or other forms of external pressure on editorial freedom. Finally, in the rule of 

law area, USAID facilitated a delegation of senior Russian judges’ trip to Washington in March at Chief 

Justice Rehnquist's request. The judges met with him and seven of the other U.S. Supreme Court 

Justices during the visit. 

 

II. Economic Reform Assistance 

A. Country Situation 

Russian economic growth in 2005 has been influenced by three primary factors: a continuing rapid 

expansion of domestic incomes and demand, improvements in the expectations of investors, and growing 

competitive pressures from the real appreciation of the ruble. In this context, Russian economic growth 

remains strong, although the slowdown in many sectors since the second half of 2004 continues as does 

over reliance on the oil and gas sector. Recent data provides more evidence of growing competitive 

pressures from a stronger ruble. Higher oil prices have brought even greater windfall revenues to the 

federal budget. Core consumer price inflation remains roughly at the same level as in 2003 and 2004. 

President Putin and the government have taken a number of steps to reassure private investors of a 

political commitment to improving the investment climate even though actions, such as the Yukos-related 

prosecutions and some apparent efforts at re-nationalization have raised questions. The government has 

continued the implementation of previously launched reforms, but appears to have postponed any new 

major initiatives until after the elections in 2008. Nevertheless, many regions plan to launch the very 

ambitious and far-reaching reform of local self-government scheduled in 2006. The Government of 

Russia has placed a political priority on increasing the activity of the state in the economy in partnership 

with private investors through Public-Private Partnerships, special economic zones, and concession 

agreements. 

B. U.S. Assistance Priorities 

USAID/Russia assistance priorities for economic reform in FY 2005 focused on expansion of the microfinance sector, expansion of the credit cooperatives system to the North Caucasus, banking sector 

reform, and access to credit for small businesses through credit guarantees. 

USAID has supported the development of a national-level resource center for the entire microfinance 

industry in Russia. The center provides training, consulting, and dissemination of microfinance best 

practices and standards, legal support, and improvement of legal environment. 

In the RFE region, USAID continued institutional development of two Russian Microfinance Institutions 

(MFIs) on Sakhalin Island. Thanks to Global Development Alliances fostered by the Mission, these 

USAID-supported institutions receive funds from Exxon Neftegas Limited and Sakhalin Energy to 

increase access to finance for small business entrepreneurs on the island. 

USAID-supported banking sector reform through work with the Central Bank of Russia (CBR) on 

upgrading supervision, implementation of the deposit insurance system which USAID’s earlier efforts 

helped introduce, introduction of credit bureaus, anti-money laundering and fighting terrorist finance. 

USAID/Russia helped the banking sector to meet the financial needs of small and medium-sized 

enterprises (SMEs). Currently, the Mission uses Loan Portfolio Guarantees (LPG) that provide a 50% 

guarantee on net loss on loans made to SMEs. Through this program, USAID encouraged commercials 

banks to extend loans to SMEs which might not otherwise be able to access credit in the formal financial 

markets due to the perceived risks of small business lending. 

In the RFE, USAID supported better management of Russia’s important forest resources. USAID’s 

partners trained local officials in sustainable management, supported environmental NGOs, implemented 

public information campaigns to stimulate citizen involvement in resource management issues, and 

supported the development of small businesses based upon sustainable use of non-timber forest 

resources. USAID/Russia supported the dissemination of environmental and energy efficiency best 
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practices by partnering NGOs across Russia and mobilizing communities to work in public-private 

partnership to solve problems. 

C. Program Performance 

USAID has helped over 350 MFIs through its partners. USAID supported annual national microfinance 

forums and conferences which attracted over 400 participants representing the microfinance community, 

the banking community, the GOR, and other donors. USAID’s partners have been instrumental in 

focusing the Government’s attention on the potential of micro-finance in Russia and building a 

constructive reform agenda to ensure the continued development and expansion of this sector. 

Moreover, USAID has been instrumental in focusing attention of commercial banks on the economic 

potential of this market. 

USAID-funded technical assistance led to active SME lending operations throughout Sakhalin Island and 

was leveraged with $750,000 in private capital contributions from Exxon Neftegas Limited and Sakhalin 

Energy. With a current active loan portfolio of $2.1 million, and a four-year history of more than $17.9 

million in loans, this USAID-supported lending operation has not experienced a single default. 

In FY 2005, USAID’s banking reform program was instrumental in supporting the roll-out of Russia’s new 

Deposit Insurance System following up on USAID’s earlier work which was vital to the system’s original 

adoption. In addition, through training of CBR examiners, USAID has had a substantive effect on the 

adoption by the CBR of effective risk-based supervision methodologies, promoted formation of long-term 

professional contacts between Russian and American financial sector regulators, and furthered joint 

efforts in anti-money laundering and fighting terrorism financing in Russia. 

Since 2000, USAID has signed LPG agreements with four Russian commercial banks under the Credit 

Guarantee Program. These banks are BIN-Bank and Russian Banker’s House, SDM Bank in Moscow, 

and Center Invest Bank in Rostov-on-Don. To-date, these banks have made over 660 loans amounting 

to approximately $22 million in 15 Russian regions. Thus, each dollar of USAID’s investment in this 

guarantee program has generated approximately $20 in loans to small businesses and micro-enterprises 

in Russia. All loans placed under guarantee by these four banks were repaid with only one exception 

(repayment rate =99.84%). 

More than 30,000 RFE residents participated in USAID’s sustainable forest management and resource 

protection public information campaigns. In addition, 165 representatives of NGOs and regional and 

municipal agencies were trained in sustainable forest management. Twenty-six logging companies, 22 

NGOs, and 27 administration officials received training related to illegal logging and timber certification. 

The fire prevention public information campaign is now institutionalized nationally by the Ministry of 

Natural Resources, as is the pest monitoring methodology, which will be applied nation-wide. USAIDsupported NGO partnerships in 21 regions, focused on the RFE and Siberia. The quality of communal 

services was improved in 32 communities through the introduction of energy-efficiency technologies. 

III. Social Reform and Humanitarian Assistance 

 

A. Country Situation: 

 

Russia faces a demographic implosion. With present trends, the total population will fall by 30% by midcentury and the proportion of people over 45 will increase to 30% by 2016. In the approximately 15 years 

since the disintegration of the Soviet Union, life-expectancy for males has dropped each year, going from 

70 to 59. Russia has one of the fastest growing HIV/AIDS epidemics in the world, as well as multi- and 

extremely-drug-resistant tuberculosis (TB.) This year also saw outbreaks of dangerous strains of avian 

flu in swans, ducks, and other wild fowl. Russia continues to experience unrest in the North Caucasus, 

increasing the threat of terrorism elsewhere in the country. Terrorist incidents have been frequent both in 

Moscow and in the regions, resulting in hundreds of fatalities. 

In the past year, political leaders have increased political and financial commitments to battling HIV/AIDS. 
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On September 27, 2005, President Putin stated that HIV/AIDS is a serious problem in Russia and that 

national government spending to fight HIV/AIDS will increase twenty-fold. Concurrently, Presidents Bush 

and Putin agreed on a joint collaborative effort to address HIV/AIDS through the Bratislava Initiative - an 

initiative which entails laboratory capacity building; expanding HIV/AIDS knowledge; developing an 

HIV/AIDS vaccine; and continuing post-graduate medical education. The Ministry of Health and Social 

Development (MOHSD) has begun work on a national HIV/AIDS program for 2007-2011. The Russian 

Orthodox Church in recent months has made public statements endorsing assistance to people living with 

HIV/AIDS and unveiled its plan to provide help. The Ministry of Defense is increasingly dealing with 

HIV/AIDS in the military, and has conducted two joint Ministry of Defense/USG conferences to open a 

dialogue on increasing and improving HIV prevention efforts. 

The fall of the Soviet Union has brought increased migration and mobility, rising unemployment, as well 

as a breakdown in Soviet health structures; all of these factors contribute to the transmission of sexually 

transmitted infections including HIV. Increases in risky behaviors have led to rapid growth in the number 

of Intravenous Drug Users (IDU), currently estimated at 68% of the HIV cases, as well as Sexually 

Transmitted Infections (STI) rates in the general population. Recent trend data suggest a shift to sexual 

routes of transmission with a greater proportion (38% of all new cases) of women being infected. 

B. U.S. Assistance Priorities: 

 

In FY 2005, the USG’s main assistance goals in the social services sector were to launch a 

comprehensive Embassy-wide approach to battle the HIV/AIDS epidemic in Russia with an emphasis on 

building Russian political, business, religious, and scientific leadership; additional goals include 

strengthening Russia’s nationwide response to tuberculosis and other infectious diseases including 

Hepatitis B and C, and the efficient delivery by local and municipal governments of a broad range of 

social services related to child welfare the environment, and economic planning. At the end of the fiscal 

year, the Embassy turned its attention to an Embassy dialogue with the Government of Russia on the 

avian flu epidemic in migratory birds. 

 

There is a long history of U.S.-Russia partnerships in the social sector. For nearly a decade, the USG 

has worked collaboratively with Russian federal-level counterparts to strengthen primary health care 

systems, focusing on maternal and child health and family planning services through public-sector and 

non-governmental facilities, and on biomedical research, disease surveillance, and diagnosis and 

treatment of infectious and chronic diseases. The USG has also worked with local governments to 

streamline social service administration, improve the targeting of benefits, and shift more service 

provision into the NGO community through competitive grants and contracting mechanisms. In addition, 

USG collaboration with ecological and health authorities in the regions has concentrated on improving the 

environment. In education, USAID-funded partners' efforts focused on primary and secondary education, 

and more specifically, on the rights of disabled children to equal access, and on consolidating civics and 

volunteerism training. 

 

C. Program Performance: 

 

Due in part to USG-funded assistance programs, targeted areas in Russia have seen a falling rate of 

abortion, improved success rates in treating tuberculosis, improved primary care standards, greater 

municipal funding for health care on HIV/AIDS and TB, decreases in the number of abandoned and 

vulnerable children, an increased commitment to foster care, and greater Russian Government attention 

to AIDS prevention and to the treatment, care, and support of people affected with HIV/AIDS. USGfunded programs have also helped Russian scientists pursue civilian research in important areas such as 

HIV/AIDS and TB, including diagnostics and laboratory capacity building. 

USAID’s maternal and child health program successfully integrated internationally recognized practices 

on reproductive health and family planning in 14 regions reaching 9.5% of the population. Preliminary 

data from the project’s monitoring system demonstrated significant changes in the key project indicators, 

such as a 14% decline in abortion rates compared with the baseline in 2002; increased family support 

during labor and delivery at maternity hospitals (from zero to 35%); increased exclusive breastfeeding up 
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to six months (from 17% to 47%); increased use of evidence-based practices (from zero to 60%) and 

decreased use of ineffective or harmful practices (82% to 22%). 

While HIV infection rates continue to be extremely high in Russia, U.S. assistance programs enjoyed 

significant success in 2005, particularly in preparing high prevalence regions to scale up treatment 

services for AIDS patients, promoting public awareness, and involvement for the business community, 

and building high-level political leadership on this issue. In 2004, USAID launched a treatment and care 

program in four high HIV/AIDS prevalence regions which partners Russian cities with U.S. partners in 

twinning arrangements. Samara, Saratov, Orenburg, and St. Petersburg - the four USAID supported 

sites - have served as models for the newly launched Global Fund treatment sites (ten in all). 

Registration for antenatal care before 12 weeks of gestation increased 33% from FY 2003 (baseline). 

Significant progress was also made in Togliatti where availability of HIV tests before delivery increased by 

18% and family planning and counseling increased by 48% compared to FY 2003. 

USAID’s support for communications, advocacy, and research helped launch activities in four regions. 

Representatives from the four regions were trained in using an international model to analyze regional 

budgetary needs to develop an effective response to HIV/AIDS. Manuals and communication materials 

were developed for training peer educators and, following pilot testing, reached 1,695 youth. USAID also 

supported the development of an HIV/AIDS school-based curriculum for ages 15-18. The Ministry of 

Education approved the curriculum and it has been implemented in 25 schools. The program is now 

expanding to a total of 92 schools, to reach 8,000 students. An HIV/AIDS counseling manual, video, and 

materials were approved by the MOHSD for use throughout Russia, and USAID funded a training of 

trainers to establish a cadre of specialists to train others in counseling techniques. 

In an HIV/AIDS epidemic such as Russia’s, prevention activities must focus on high-risk populations. 

With USAID funding, approximately 20 regional NGOs were involved in HIV/AIDS prevention activities 

targeting core HIV transmitters. In FY 2005, approximately 36,000 prostitutes and IDUs were reached in 

project sites through linkages with medical or social services as well as through provision of educational 

materials on HIV prevention. Youth peer education programs were expanded in Samara, Saratov, and St 

Petersburg to reach an estimated audience of 6,000. The programs consisted of training of trainers for 

peers on abstinence, safe sex, and HIV/AIDS. New materials promoting Abstinence, Be Faithful, and 

Condoms (ABC) were developed and distributed to more than 100,000 young people. Two popular 

youth-oriented websites in Russia (one focusing on personal risk perception and the ABC promotion; and 

one on drug demand reduction) reached approximately 500,000 individual users in FY 2005. 

HIV/AIDS Policy Advocacy and Business Against HIV/AIDS programs have been implemented on the 

federal and regional levels in FY 2005. The Russian Parliamentary Working Group established in 2004 

consists of 16 Parliament members. A key accomplishment was a national security council discussion on 

HIV/AIDS held at the November 2005 meeting of the State Council. The “Business Against AIDS” 

network, which aims to build awareness and commitment among senior business and labor leaders in the 

fight against AIDS, was launched. At the March 2005 summit, Deputy Prime Minister Alexander Zhukov 

and Minister of Health and Social Development Mikhail Zurabov called on business leaders to expand 

workplace programs to fight HIV/AIDS and protect workers’ rights. Employer programs were conducted 

for Alfa-Bank, Ingosstrakh, General Motors, Nestle Foods, Wimm-Bill-Dann, PepsiCo International, Shell, 

TNK-BP, Transaero Airlines, and for all the members of the “Business Against AIDS” network which 

represents a 50% expansion of businesses involved in the fight against AIDS. 

With the rapid increase in the HIV epidemic in Russia over the last five years and the increasing 

proportion of women infected, the overall incidence of mother-to-child transmission of HIV has increased 

dramatically. The MOHSD estimates that 25,000 babies will be born to HIV-infected mothers in Russia in 

2006. Over the last three years, prevention services of mother-to-child transmission of HIV (PMTCT) 

have been rapidly scaled up. As a member of a national PMTCT committee, USAID’s technical 

assistance programs contributed to the development of national guidelines on PMTCT which follow 

Center for Disease Control (CDC) and World Health Organization (WHO) standards and recommended 

approaches. USAID-supported pilot programs on rapid HIV testing for women of unknown status 

presenting in labor; the “rapid test” method is now incorporated in the national guidelines. With financial 
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support from USAID, a WHO-CDC generic PMTCT training curriculum has been adapted to Russia and is 

currently being rolled out in 16 regions of the country. 

The TB control program was active in eight Russian regions for both civilian and prison populations. The 

program financially assisted regional governments to respond to epidemics through the adaptation and 

implementation of the internationally recognized WHO approach to TB diagnosis and treatment. The 

modern TB control systems implemented in these eight regions resulted in increased treatment success 

rates up to 75-80%, the development of replicable models in TB treatment and care, and the 

improvement of laboratory performance and infection control. The main achievements included: 1) the 

multi-drug resistant tuberculosis treatment program was operational in two regions, with approximately 

240 patients enrolled and treatment success rate exceeding 70%; 2) more than 4,500 health 

professionals were trained in TB-related issues; 3) 12 microbiological laboratories were fully equipped; 

4) as a result of the efforts invested, the MOHSD issued new executive orders on TB diagnosis and 

treatment, recording and reporting systems and prevention and treatment of HIV-associated TB; 5) 

guidelines and training materials on the provision of TB care to people living with HIV/AIDS were 

developed; 6) infection control was improved in four TB central oblast laboratories; and, 7) an 

agreement was signed between the Global Fund to Fight HIV/AIDS, Tuberculosis and Malaria (GFATM) 

and the Russian Health Care Foundation for the implementation of the first two years of a comprehensive 

TB-control program in Russia. This five-year TB control program, expected to reach $91 million of 

funding, was designed in cooperation with USAID. 

While the problem of drug resistant, multi drug-resistant, and extremely drug-resistant TB continues to be 

extremely important in Russia, the pilot multi-drug resistant TB treatment program illustrated the 

effectiveness of USAID’s related protocol, which now is used nationwide in the penitentiary system. The 

MOHSD benefited from USAID’s experience through the introduction of modern TB diagnosis, treatment, 

recording, and reporting protocols. 

A USAID-supported disabled children’s education advocacy NGO won a significant court case on behalf 

of several clients whose children sought to be "main-streamed," and also participated in a Parliamentsponsored effort which successfully amended the law on education of children with disabilities. 

Meanwhile, for the second successful year, USAID-supported NGOs significantly expanded their 

successful nationwide campaign to encourage and reward high school student social volunteer teams 

who identify and execute concrete community improvement projects. 
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FY 2006 Program 

SO: 118-0100 Strengthened Environment for Small and Medium Enterprises in Areas of Strategic 

Interest 

Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness ($820,000 FSA). USAID will support civil society development 

and humanitarian assistance in the Chukotka region and training and business skills development for 

small and medium enterprises (SMEs) in the Russia Far East (RFE). Principal partner: University of 

Alaska at Anchorage (UAA). 

Strengthen The Financial Services Sector & Increase Access to Capital 

Strengthen the Financial Services Sector & Increase Access to Capital ($4,180,000 FSA). USAID will 

continue to support the development of a vibrant micro-finance sector at the national, regional, and 

community levels. USAID assistance has been instrumental in creating this economic sector in Russia 

which made more than $88 million in small business loans in FY 2005. USAID will support sector-specific 

policy development, advocacy, legal reform, and training at the national level through more than 400 

micro-finance institutions (MFIs) and credit cooperatives nationwide which represent a powerful voice for 

Russia’s emerging entrepreneurial class. Additionally, USAID will work to enhance cooperation between 

MFIs and the formal banking sector to further access to commercial credit for its membership and their 

clients. The key program goal is to institutionalize the Russian Microfinance Center (RMC) and a recently 

created second-tier Micro-finance Fund (Centurion Capital) as sustainable legacies to USAID’s 

assistance. USAID will provide the remaining capital for Centurion Capital’s start-up operations. In the 

RFE, USAID will continue institutional development of two Russian MFIs on Sakhalin Island - the 

Sakhalin Small Enterprise Development Foundation and Sakhalin Small Business Credit Society. These 

USAID-supported institutions will continue to cooperate actively under Global Development Alliance 

arrangements with Exxon Neftegas Limited and Sakhalin Energy to increase access to finance for small 

business entrepreneurs on the island. USAID will support the Central Bank of Russia (CBR) as it finalizes 

implementation of the Deposit Insurance System (DIS) and continues to upgrade its on-site banking 

supervision capacity. USAID will also select a final group of banks for targeted technical assistance and 

training to strengthen their ability to mobilize savings and engage in commercial lending to small 

businesses. The combination of deposit insurance, bank supervision, and targeted technical assistance 

will stimulate additional deposits by consumers and more-effective lending by commercial banks. 

Working with a private sector bank through a Global Development Alliance, USAID’s anti-money 

laundering (AML) activity will strengthen Russian expertise in the identification and prevention of moneylaundering and terrorism finance. This activity will build upon eight years of cooperation between the 

CBR and U.S. financial regulators, and will address the most urgent needs for both countries. This will 

include internships for CBR senior managers with U.S. financial regulators and in-Russia training for CBR 

and commercial banks on improved AML policies and procedures. These activities will support a regional 

effort, within the Newly Independent States and Asia, and will be coordinated with the U.S. Treasury and 

U.S. Department of Justice. Under the North Caucasus (NC) Initiative USAID will support: the 

development and expansion of regional enterprises, particularly in rural areas; link enterprises and 

institutions to on-going programs and institutions in other regions in Russia; and provide entrepreneurs in 

the NC with financial, business development and technical services to support business growth and 

economic integration of the NC with Russia. USAID will support rural credit cooperatives and 

agribusiness development through enhanced access to credit, and strengthen NC agri-businesses and 

agriculture support institutions, like universities. Principal partners: Financial Services Volunteer Corps 

(FSVC), Development Alternatives Inc. (DAI), Agricultural Cooperative Development International/ 

Volunteers in Overseas Cooperative Assistance (ACDI/VOCA) and new partners to be determined. 

FY 2007 Program 

SO: 118-0100 Strengthened Environment for Small and Medium Enterprises in Areas of Strategic 

Interest 
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Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness ($708,000 FSA). USAID intends to focus efforts on SME 

development in the RFE and strategic cities. Principal partners: Same as above. 

Strengthen The Financial Services Sector & Increase Access to Capital 

Strengthen the Financial Services Sector & Increase Access to Capital ($3,000,000 FSA). In FY 2007, 

USAID will concentrate final funding on micro-finance legacy institutions, including a direct grant to the 

RMC, and additional capitalization for Centurion Capital. Additional capital will be supported with a 

Development Credit Authority Guarantee to enhance Centurion’s ability to access private debt sources. 

The micro-credit program on Sakhalin Island will receive additional funding to expand the reach of the 

program to underserved areas in the RFE and to bolster business planning capacity. Additional credit, 

agribusiness, and local economic development efforts will focus on the strategic NC region. During FY 

2007, USAID will also continue to develop post-presence capacity to support essential final banking 

reforms. This effort will concentrate on improving banking system transparency, additional bank examiner 

capacity-building, and further strengthening of partnerships with American bank regulators. Given 

Moscow’s status as a regional financial center, an important focus of this effort will include assistance on 

AML. As part of the U.S. Government effort to eliminate illicit financial flows and combat terrorism, USAID 

will help the CBR and the private sector to improve AML awareness and compliance. In addition to the 

direct benefits, these activities will serve to promote savings, discourage corruption, improve regional 

AML practices, and encourage banking practices that are important to forming a stable middle class. 

Principal partners: Same as above. 

FY 2006 Program 

SO: 118-0200 More Open, Democratic Society 

Establish & Ensure Media Freedom & Freedom Of Information 

Establish & Ensure Media Freedom & Freedom of Information ($4,818,000 FSA). USAID will help 

improve the sustainability and professional standards of independent TV, radio, and newspapers through 

training, competitions, and social marketing campaigns. USAID will also promote professional, unbiased 

coverage of public policy, political, and electoral issues. Principal partners: Internews Russia, Eurasia 

Foundation, Foundation for Independent Radio, Foundation for Informational Policy Development. 

Promote and Support Credible Elections Processes 

Promote and Support Credible Elections Processes ($1,655,000 FSA, $750,000 FSA prior year 

recoveries). USAID will support a leading election oversight non-governmental organization (NGO) to 

monitor local and regional elections. Other new programs will monitor media coverage of political issues 

and assist other organizations intending to monitor elections in the next two years. Principal partners: 

Voice Association and to be determined (TBD). 

Reduce Trafficking In Persons 

Reduce Trafficking In Persons ($750,000 FSA). USAID will help crisis centers to improve the job skills 

and risk awareness of youth at risk of being trafficked. Principal partners: TBD. 

Strengthen Civil Society 

Strengthen Civil Society ($18,900,000 FSA, $4,152 FSA prior year recoveries). The national program, 

“Dialogue,” will help NGOs to conduct policy dialogue with government while policy think tanks will 
11

contribute to informed debate among the public and policymakers on economic, social, and 

environmental reforms and sustainable NGO financing. Resource Centers in 20 regions will support civic 

activism and community problem-solving, including in the Russian Far East (RFE). Civic education 

programs will build youth citizenship and service-learning. Public-private partnerships will be built to 

leverage resources in the civil society area. The New Eurasia Foundation, an American-EuropeanRussian partnership, founded by the Eurasia Foundation and others, will continue to promote corporate 

social responsibility, policy development, and youth involvement. Principal partners: International 

Research and Exchanges Board, Institute for Urban Economics, Moscow School of Political Studies, 

Moscow Public Science Foundation, Eurasia Foundation, Institute for Economies in Transition. 

Strengthen Democratic Political Parties 

Strengthen Democratic Political Parties ($3,910,000 FSA, $630,000 FSA prior year recoveries). USAID 

will enhance organizational capacity of democratically-oriented parties, encourage and intensify coalitionbuilding efforts for the 2007-2008 elections, and promote cooperation with NGOs. Community-based 

initiatives in selected regions will teach Russian youth to apply democratic principles and pursue civic 

initiatives. New partnerships will strengthen Russian policy institutes capacity to analyze campaign and 

policy issues. Principal partners: National Democratic Institute (NDI), International Republican Institute 

(IRI), Project Harmony, TBD. 

Strengthen the Justice Sector 

Strengthen the Justice Sector ($4,362,000 FSA). Russian-American judicial exchanges, capacity building 

of Russian judicial institutions, and ‘sister bar’ partnerships will complement several other programs to 

promote NGOs’ use of the legal system. Human rights advocacy, legal clinics, and advocacy programs 

will aid refugees and disadvantaged groups. Principal partners: Chemonics International, American Bar 

Association/Central European and Eurasian Law Initiative (ABA/CEELI), International Memorial, Moscow 

Helsinki Group, Bay Area Council for Jewish Rescue and Renewal. 

Support Democratic Local Government & Decentralization 

Support Democratic Local Government & Decentralization ($3,605,000 FSA). Local governance activities 

will assist Russian communities to implement local governance and budget policy reforms. New 

approaches will include city-to-city partnerships, pooled finance, and Development Credit Authority 

guarantee structures to support private-sector-led solutions to deliver public services. USAID will also 

support the promotion of strengthened and effective local government in the North Caucasus and 

strategic cities. Principal partners: Center for Fiscal Policy, Institute for Urban Economics, TBD. 

FY 2007 Program 

SO: 118-0200 More Open, Democratic Society 

Establish & Ensure Media Freedom & Freedom Of Information 

Establish & Ensure Media Freedom & Freedom of Information ($4,100,000 FSA). USAID will emphasize 

the independence, editorial excellence, and civic engagement of regional media sources, and electionrelated seminars for officials and journalists. Principal partners: Same as above. 

Promote and Support Credible Elections Processes 

Promote and Support Credible Elections Processes ($1,605,000 FSA). USAID will support the efforts of 

an evolving NGO coalition for election monitoring; assist the domestic watchdog organization “Voice”; and 

support multilateral efforts wherever possible. Principal partners: Same as above. 
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Strengthen Civil Society 

Strengthen Civil Society ($13,499,000 FSA). A new regional grants program will support NGOs and 

promote tax and other reforms. Policy analysis and civic education efforts will also expand. Principal 

partners: Same as above. 

Strengthen Democratic Political Parties 

Strengthen Democratic Political Parties ($2,010,000 FSA). USAID will support democratically oriented 

parties in preparation for the 2007-2008 elections. Principal partners: Same as above. 

Strengthen the Justice Sector 

Strengthen the Justice Sector ($3,155,000 FSA). USAID will support clinical legal education, judicial 

reform and partnerships and NGO monitoring of Russian compliance with international standards. 

Assistance to human rights NGOs will continue. Principal partners: Same as above. 

Support Democratic Local Government & Decentralization 

Support Democratic Local Government & Decentralization ($3,815,000 FSA). USAID will expand the 

program to more regions and municipalities to foster active citizen participation in the design and delivery 

of public services and attract private financing for new solutions to improve service delivery. Principal 

partners: Same as above. 

FY 2006 Program 

SO: 118-0211 A More Open, Participatory Society 

Strengthen Civil Society 

FY 2006 Program 

SO: 118-0300 Use of Improved Health and Child Welfare Practices Increased 

Address Other Health Vulnerabilities 

Address Other Health Vulnerabilities ($4,775,000 FSA, $516,000 FSA prior year recoveries). USAID will 

roll out improved medical and social services and facilitate the development of child welfare standards 

necessary for building a sustainable system to prevent child negligence and abandonment and reduce 

the number of children in institutional care. USAID will continue to support its psycho-social assistance to 

children in crises in the North Caucasus (NC) region. USAID will support the in-school program aimed at 

promoting healthy lifestyles among youth, and new partnerships with the Ministry of Health in the areas of 

children and families in crisis. Principal partners: International Exchange and Research Board (IREX), 

Johns Hopkins University (JHU), United Nations Children's Fund (UNICEF), American International 

Health Alliance (AIHA). 

Prevent & Control Infectious Diseases Of Major Importance 

Prevent & Control Infectious Diseases of Major Importance ($4,895,000 FSA). The TB control program 

will continue in eight regions of Russia, including the Russian Far East (RFE). USAID will continue efforts 

to introduce and expand treatment of multi-drug resistant (MDR) TB, infection control measures, and 

provision of care to TB patients for possible replication nationwide. The program will also refine TB-
13

related national guidelines. In addition to TB-related activities, model TB/HIV co-infection sub-programs 

will start in prisons in three regions. USAID will also support vaccination interventions in the RFE as well 

as Hepatitis B prevention and control interventions in the RFE. Assistance will be provided to strengthen 

primary health care in the NC. Principal partners: World Health Organization (WHO), Department of 

Health and Human Services (HHS), International Federation of the Red Cross and Red Crescent 

Societies (IFRC), University Research Corporation (URC). 

Reduce Transmission & Impact Of HIV/AIDS 

Reduce Transmission & Impact of HIV/AIDS ($7,000,000 FSA, $2,970,000 CSH). USAID HIV/AIDS 

prevention and care activities will strategically leverage resources and opportunities of other donors, such 

as the Global Fund, and will form synergistic partnerships with international organizations such as the 

United Nations Development Program (UNDP), non-government organizations (NGOs), businesses, and 

federal, regional, and local governments. The HIV treatment, care, and support initiative will continue in 

five regions to empower local leaders to help promote multi-sectoral collaboration; establish support for 

people living with HIV/AIDS; engage and strengthen NGOs working in prevention, care and support; 

ensure control of HIV transmission; and, build capacity to apply a quality improvement methodology. 

Finally, the U.S. Government, with USAID technical and financial support will continue the Bratislava 

Initiative - an agreement between Presidents Bush and Putin to jointly collaborate in addressing the 

global threat of HIV/AIDS. Principal partners: AIHA, Population Services International (PSI), 

Transatlantic Partners Against AIDS (TPAA), Centers for Disease Control and Prevention (CDC), the 

Joint United Nations Program on HIV/AIDS (UNAIDS), UNDP, IFRC, URC. 

Support Family Planning 

Support Family Planning ($3,300,000 FSA, $3,450,000 CSH carryover). USAID’s support for quality 

reproductive health services will continue with an emphasis on preventing abortions. The program will 

focus on risky behavior in youth. A patient-centered coordinated system of care, providing family 

planning information, services, and contraceptive methods as a part of HIV prevention programs to 

people living with HIV/AIDS and their partners in three regions will be developed. The system will include 

AIDS centers, women’s consultation centers, youth health centers, maternity houses, sexually transmitted 

infection (STI) clinics, narcological dispensaries, and NGOs working in the area of prevention. Another 

activity will decrease abortions and HIV/AIDS, STIs, and related risk behaviors by increasing young 

peoples’ access to age-appropriate and culturally relevant reproductive health and family planning 

counseling and treatment services in the NC. A nationwide Couples’ Campaign will engage men in 

reproductive decision-making, encourage family preservation, and child spacing. Principal partners: JHU, 

UNICEF, URC, AIHA. 

FY 2007 Program 

SO: 118-0300 Use of Improved Health and Child Welfare Practices Increased 

Address Other Health Vulnerabilities 

Address Other Health Vulnerabilities ($2,865,000 FSA). USAID will continue to develop a sustainable 

child abandonment prevention system to reduce the number of neglected children and children in 

institutional care. Programs addressing youth and families will continue, as will in-school programs aimed 

at youth. Principal partners: Same as above. 

Prevent & Control Infectious Diseases Of Major Importance 

Prevent & Control Infectious Diseases of Major Importance ($3,975,000 FSA). USAID will continue to 

strengthen pilot TB programs to serve as the model for greatly expanded World Bank/Government of 

Russia (GOR) and Global Fund grant programs. USAID will address TB/HIV co-infection, MDR TB 
14

treatment, and improvement of patients’ compliance to therapy. HIV prevention sub-programs will start in 

prisons in two regions. Efforts to revive the primary health care system in the NC will be continued. 

Principal partners: Same as above. 

Reduce Transmission & Impact Of HIV/AIDS 

Reduce Transmission & Impact of HIV/AIDS ($5,321,000 FSA, $2,970,000 CSH). USAID will work 

closely with UNAIDS, and the Global Fund. Technical support will continue to be provided to the GOR for 

implementation of HIV/AIDS and TB Global Fund grants. Additional NGOs will provide prevention 

services to the most at-risk populations. Access to treatment, care, and support services will increase. 

Policy and advocacy activities will increase national and local resources for HIV/AIDS programs. 

Principal partners: Same as above. 

Support Family Planning 

Support Family Planning ($2,650,000 FSA). A new model of medical-social services on reproductive 

health for vulnerable groups, including vulnerable youth will be developed and piloted in two regions. 

Principal partners: Same as above. 

FY 2006 Program 

SO: 118-0321 Use of Improved Health and Child Welfare Practices Increased 

Address Other Health Vulnerabilities 

Prevent & Control Infectious Diseases Of Major Importance 

Reduce Transmission & Impact Of HIV/AIDS 

Support Family Planning 

FY 2007 Program 

SO: 118-0321 Use of Improved Health and Child Welfare Practices Increased 

Address Other Health Vulnerabilities 

Prevent & Control Infectious Diseases Of Major Importance 

Reduce Transmission & Impact Of HIV/AIDS 

Support Family Planning 

FY 2006 Program 

SO: 118-0420 Program Support 

Program Support 

Program Support ($2,737,000 FSA, $2,752,365 FSA carryover, $204,408 FSA prior year recoveries). As 

a part of the overall participant training program, USAID will implement a Community Connections project. 
15

The broad public diplomacy goal of the Community Connections project is to contribute to economic and 

democratic reform, and to promote mutual understanding in Eurasia through exposure to American 

society and personal connections with Americans. Through local community host organizations in the 

United States, entrepreneurs, local government officials, legal professionals, civil society organizations 

leaders, and other professionals from Russia will be provided with a three to five week home stay-based 

program in the United States, tailored to their professional or business interests. To promote the GDA 

initiative, USAID will support public-private alliances to carry out activities under the USAID country 

strategy. USAID will implement dissemination grants across Russia for Regional Initiative sites. In 

addition, evaluations, assessment, and studies will assess and document program impact, identify 

implementation issues, make recommendations for their resolution, and improve understanding of 

Russia’s development challenges. Principal partners: World Learning (prime), International Research 

and Exchanges Board (prime), Project Harmony (sub), and new partners to be determined (TBD). 

Support Populations at Risk 

Support Populations at Risk ($1,800,000 FSA, $450,000 FSA carryover supplemental). USAID will 

continue to support projects that help to mitigate conflict and promote ethnic reconciliation to populations 

at risk in the North Caucasus. Also, USAID, along with the rest of the international donor community, will 

begin to transition from humanitarian assistance to a more sustainable development approach during the 

life of the USAID country strategy to help integrate these communities into the social and economic 

mainstream. Principal partners: TBD. 

FY 2007 Program 

SO: 118-0420 Program Support 

Program Support 

Program Support ($2,365,000 FSA). USAID intends to continue support for the goals of the Community 

Connections program, GDAs, as well as special initiatives in the Russian Far East. USAID plans to 

conduct studies, assessments, and related activities for program design and evaluation. Principal 

partners: Same as above. 

Support Populations at Risk 

Support Populations at Risk ($1,000,000 FSA). USAID intends to continue support to populations at risk 

in the North Caucasus by helping to mitigate conflict, promoting economic viability, and reorienting 

affected communities into the social and economic mainstream. Principal partners: TBD 
16

Results Framework 

118-0100 Strengthened Environment for Small and Medium Enterprises in Areas of Strategic 

Interest 

Program Title: Small and Medium Enterprises 

118-0130 Accelerated Development and Growth of Private Enterprises 

Program Title: Private Enterprise Growth and Development 

118-0131 Small and Medium-size Enterprise Sector Strengthened and Expanded 

Program Title: Small Business Development 

 131.1: Policy Environment for Small and Medium Enterprises Strengthened 

 131.2: Access to Finance for Small and Medium Enterprises Increased 

 131.2.1: Policy Environment for Non-Bank Financial Institutions Providing Services to SMEs Improved 

 131.2.2: Financial Services to SMEs Expanded 

 131.3: High Quality Business Services to SMEs Strengthened and Expanded 

 131.4: More Students Educated in Business Preactices, Civics, and Ethics 

118-0140 Improved Economic Infrastructure to Support Market-Oriented Growth 

Program Title: Market-Oriented Economic Infrastructure 

118-0141 Market-Oriented Reforms Developed and Implemented in Selected Sectors 

Program Title: Economic Policy Reform 

 141.1: Independent Russian Economic Think Tanks Strengthened 

 141.2: Resources to Russian Businesses and Enterpreneurs Efficiently Channeled by Banking Sector 

 141.3: Business Environment for Trade and Investment Improved 

 141.4: Fiscal Policies Developed and Adopted Improved 

118-0160 Increased Environmental Management Capacity to Support Sustainable Economic 

Growth 

Program Title: Environmental Management Capacity 

118-0161 Environmental Resources Managed More Effectively to Support Economic Growth 

Program Title: Environment 

 161.1: Eco-Businesses in Targeted Sectors Strengthened 

 161.2: Operating Efficiency of Businesses Adopting Environmentally Friendly Practices Improved 

 161.3: Practices that Improve the Environmental Quality of Services Adopted by Municipalities 

 161.4: Forestry Management Practices Strengthened 

118-0200 More Open, Democratic Society 

Program Title: Strengthening Democracy 

118-0210 Increased, Better Informed Citizens' Participation in Political and Economic DecisionMaking 

Program Title: Citizens' Participation 

118-0211 A More Open, Participatory Society 

Program Title: More Open, Participatory Society 

 211.1: Sources of Non-state Information that are Accessible to the Public Increased and Improved 

 211.1.1: Public Information Provided through NGOs Increased 

 211.1.2: Access to Legal Protection for Media Increased 

 211.1.3: Business, Professional, and Ethics Practices in the Media Sector Strengthened 
17

 211.1.4: Public Interest Information Available on the Internet Increased 

 211.2: Civil Society and Advocacy Institutions Strengthened 

 211.2.1: Cooperation between NGOs, Government, and Business for Public Purposes Increased 

 211.2.2: Citizens' Interests More Efficiently Represented 

 211.2.3: Financial, Organizational, and Outreach Capacity Increased 

 211.3: Democratic Culture for Citizen Participation Strengthened 

 211.3.1: Civic Education Programs for Youth Improved 

 211.3.2: Patterns of Volunteerism and Charitable Giving Strengthened 

 211.3.3: Number of Citizens Participate in Direct Action Activities Increased 

118-0220 Strengthened Rule of Law and Respect for Human Rights 

Program Title: Rule of Law 

118-0221 Legal Systems Strengthened 

Program Title: Legal Systems Strengthened 

 221.1: Public Awareness of Legal Rights Increased 

 221.2: More Lawyers Skilled in Representing Clients 

 221.3: Judicial System More Transparent, Independent, and Efficient 

118-0231 Local Governance Made More Responsive and Accountable 

Program Title: Improved Local Governance and Economic Development 

 231.1: Local Governments More Effective in Managing Resources 

 231.1.1: Local Officials More Knowledgeable and Skilled in Democratic Governance 

 231.1.2: Local Financial Management Practices are Improved 

 231.1.3: Local Policies and Procedures Developed, and Adopted to Stimulate Economic Growth 

 231.2: Local Governments Operate in Sustained Partnership with Their Communities 

 231.3: Equity, Effectiveness, and Efficiency in the Delivery of Goods and Services Increased 

 231.4: Legal Environment Improved for Governments to Be More Responsive and Accountable 

118-0300 Use of Improved Health and Child Welfare Practices Increased 

Program Title: Infectious Diseases, Population, and Child Welfare 

118-0320 Improved Effectiveness of Selected Social Benefits and Services 

Program Title: Selected Social Benefits and Services 

118-0321 Use of Improved Health and Child Welfare Practices Increased 

Program Title: Health and Child Welfare 

 321.1: Access to More Effective Primary Health Care Services Increased 

 321.2: Improved Prevention and Control Practices Adopted to Reduce the Spread of HIV/AIDS and 

STDs 

 321.2.1: Reduce high risk behavior and increase awareness of HIV/AIDS among high risk groups and 

youth 

 321.2.2: Improved enabling environment 

 321.2.3: Increased access to safe, acceptable treatment, care and support services 

 321.2.4: Increase in the number of USAID HIV/AIDS pilot programs adapted and replicated in Russia 

 321.3: Access to More Effective TB Control Services Increased 

 321.4: New Child Abandonment Prevention Models and Policies Implemented 

118-0410 Special Initiatives 

Program Title: Special Initiatives 

118-0420 Program Support 

Program Title: Program Support and Special Initiatives Programs