United States General Accounting Office

GAO Report to Congressional Committees

December 1995 FORMER SOVIET

UNION

Information on U.S.

Bilateral Program

Funding

GAO/NSIAD-96-37

GAO United States

General Accounting Office

Washington, D.C. 20548

National Security and

International Affairs Division

B-265948 

December 15, 1995

The Honorable John Kasich

Chairman

The Honorable Martin Sabo

Ranking Minority Member

Committee on the Budget

House of Representatives

The Honorable Benjamin A. Gilman

Chairman

The Honorable Lee H. Hamilton

Ranking Minority Member

Committee on International Relations

House of Representatives

The Honorable Sonny Callahan

Chairman

The Honorable Charles Wilson

Ranking Minority Member

Subcommittee on Foreign Operations,

 Export Financing, and Related Programs

Committee on Appropriations

House of Representatives

The Honorable Edward R. Royce

House of Representatives

This report provides financial information on U.S. bilateral programs with

the newly independent states of the former Soviet Union (FSU) from fiscal

year 1990 through December 1994 to help them make the transition to

democratic societies with market economies.1

 Specifically, it provides

information on (1) the amount of funds obligated and expended; (2) the

amount of credits provided, including subsidy costs;2

 and (3) the

appropriation source and budget function for these funds. We have

categorized this information by (1) agency, (2) recipient country, and

(3) programmatic sector.

1

The newly independent states of the FSU are Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan,

Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.

2

The credit subsidy cost is the estimated long-term cost to the U.S. government of a direct loan or loan

guarantee, calculated on a net present value basis.

Page 1 GAO/NSIAD-96-37 Former Soviet Union
B-265948 

Background The United States began providing limited assistance to the Soviet Union

in December 1990 to support the reform effort and then increased

assistance after the Soviet Union dissolved in December 1991. In

October 1992, the Freedom for Russia and Emerging Eurasian

Democracies and Open Markets Support Act of 1992 (P.L. 102-511),

commonly known as the Freedom Support Act, was enacted. It further

increased assistance to the FSU and established a multiagency approach for

providing assistance.

In 1991, Congress authorized the Department of Defense (DOD) to establish

a Cooperative Threat Reduction (CTR) program to help FSU states

(1) destroy weapons of mass destruction, (2) store and transport those

weapons in connection with their destruction, and (3) reduce the risk of

proliferation. Subsequently, Congress added other objectives, including

promoting defense conversion.

Other agencies, such as the National Aeronautics and Space

Administration (NASA), the Departments of Agriculture, Commerce,

Energy, Health and Human Services, and State, also implement programs

in the FSU with funds not specifically appropriated for the FSU programs.

Results in Brief From fiscal year 1990 through December 31, 1994, U.S. departments and

agencies obligated $5.4 billion and expended $3.5 billion for grant

technical assistance, exchange programs, training, food and commodity

donations, mutually beneficial science and technology projects, and

support of joint space efforts. The U.S. government also provided about

$10 billion in credit for bilateral loans, loan guarantees, and insurance.

During this same period, 23 departments and independent agencies

implemented 215 programs in the FSU.

3

 However, three agencies, the U.S.

Agency for International Development (USAID), the Department of

Agriculture (USDA), and DOD implemented the large majority of noncredit

programs. USDA also funded the largest portion of credit/insurance

programs.

Most of the funding for U.S. programs came from budget accounts in the

international affairs, defense, and agriculture budget functions. However,

funds also came from eight other budget functions.

3

Twenty agencies implemented only noncredit programs, 1 agency implemented only credit/insurance

programs, and 2 agencies implemented both kinds of programs.

Page 2 GAO/NSIAD-96-37 Former Soviet Union
B-265948 

The U.S. agencies implemented programs in all 12 of the FSU countries.

Nearly half of all U.S. expenditures were for programs with Russia.

However, when measured on a per capita basis, Armenia, Georgia, and

Kyrgyzstan received more than the other countries.

U.S. programs involved a wide diversity of program areas. About

two-thirds of the total obligations were for food aid, private sector

development, emergency humanitarian assistance, disposition of weapons

of mass destruction, and democratic reform. The remaining funding was in

13 other program areas.

Appendix I presents additional information on the entire U.S. bilateral

program with the FSU. Appendix II provides brief descriptions of all

215 programs implemented by 23 U.S. departments and independent

agencies.

Agency Comments All 23 agencies we collected information from were provided an

opportunity to comment on a draft of this report. None of the agencies

disagreed with the report. Some offered minor technical or editorial

corrections, which we have incorporated in the report.

Scope and

Methodology

Our review included all U.S. bilateral programs involving the FSU for the

period fiscal year 1990 through December 1994. Previously, we reported

on program coordination and financial information for U.S. bilateral grant,

donation, and credit programs for fiscal years 1990 through 1993.4

 Using

our earlier work, we identified 23 departments and independent agencies

with programs in the FSU. Several departments and agencies had more than

one organization within the department or agency that implemented these

programs.

We used a data collection instrument to collect the financial and

programmatic information for this report and believe that we captured a

large majority of the programs implemented from fiscal year 1990 through

December 1994. However some agencies were unable to state definitively

they had identified and provided us information on all agency programs

and projects. We did not verify the accuracy and completeness of the

information provided to us.

4

Former Soviet Union: U.S. Bilateral Program Lacks Effective Coordination (GAO/NSIAD-95-10, Feb. 7,

1995). Our update of this report addresses improvements in the executive branch’s coordination of

U.S. bilateral programs in the FSU (Former Soviet Union: An Update on Coordination of U.S.

Assistance and Economic Cooperation Programs (GAO/NSIAD-96-16).

Page 3 GAO/NSIAD-96-37 Former Soviet Union
B-265948 

Obligation figures in the report represent binding agreements, such as

orders placed or contracts awarded, that will require payment immediately

or in the future. The definitions for expenditures used by agencies

responding to our inquiry varied from agency to agency. Expenditure was

generally used to mean the issuance of checks, disbursement of cash, or

other liquidation of an obligation. For example, the Defense Nuclear

Agency reported expenditures as being disbursements. However, other

agencies, such as the Europe-Newly Independant States (NIS) Bureau at

USAID included accruals—amounts due to be paid—in its expenditure

figures.

Significant amounts of funds were appropriated to one department or

agency but spent by another. To avoid double counting, we asked agencies

not to report obligation and expenditure information for funds transferred

to other agencies. We also cross-checked funding transfer information

from agencies where funds started with information from agencies that

received the funds. In instances where funds were transferred between

agencies, the figures in our report show obligations and expenditures as

reported by the agency that received the funds.

In some cases, more than one department or agency was responsible for

implementing portions of the same program. In those instances, we

showed how much each agency spent on their portion of the program,

regardless of where the funds were initially appropriated. For example,

DOD funds transferred to the Department of Energy (DOE) for fissile

material storage facility design are reported as DOE obligations and

expenditures. However, DOD funds that DOD spent itself for the same

program are reported as DOD obligations and expenditures.

To determine the Office of Management and Budget’s (OMB) budget

function classification for agency programs, we asked agencies to provide

the appropriation source used to finance their programs. We then assigned

OMB budget function classifications to the appropriation sources, based on

our knowledge about the purposes of each program and budget account

descriptions in the U.S. budget.

We captured only program costs. We did not ask agencies to provide

salary and overhead costs involved in implementing programs, except in

those instances where overhead and/or salary costs were billed to another

agency as part of an interagency agreement. We also did not attempt to

capture the cost of official visits related to the conduct of diplomacy or

Gore-Chernomyrdin activities.

Page 4 GAO/NSIAD-96-37 Former Soviet Union
B-265948 

Our information does not include U.S. annual contributions to

multinational organizations, such as the World Bank or North Atlantic

Treaty Organization, that subsequently provided financing or funded

programs, such as the multilateral component of the Partnership for

Peace, for the FSU. We did capture U.S. payments to multinational

organizations that specifically supported U.S. bilateral programs. For

example, our data includes USAID funding for the European Bank for

Reconstruction and Development’s efforts to rehabilitate gas production.

We conducted our review from March 1995 through August 1995 in

accordance with generally accepted government auditing standards.

Copies of the databases and spreadsheets used to generate the financial

information in this report are available upon request.

We are sending copies of this report to the Secretaries of State, Defense,

and Agriculture; the Administrator, Agency for International Development;

and the Director, OMB. Copies will also be made available to others on

request. Please contact me at (202) 512-4128 if you or your staff have any

questions concerning this report. Major contributors to this report are

listed in appendix III.

Harold J. Johnson, Director

International Affairs Issues

Page 5 GAO/NSIAD-96-37 Former Soviet Union
Contents

Letter 1

Appendix I 

Programwide

Information

14

Noncredit Programs 14

Credit/Insurance Programs 23

Appendix II 

Agency Specific

Information

28

USAID 29

USDA 36

DOD 43

NASA 51

DOE 57

USIA 66

Department of State 74

Peace Corps 79

TDA 82

HHS 85

Department of Commerce 90

Department of the Treasury 95

Department of the Interior 99

NRC 102

NSF 106

EPA 109

OPIC 114

DOT 117

ACDA 121

CRS 124

Department of Justice 126

SEC 130

Eximbank 131

Appendix III 

Major Contributors to

This Report

133

Related GAO Products 136

Page 6 GAO/NSIAD-96-37 Former Soviet Union
Contents

Tables Table I.1: Obligations and Expenditures for All Agencies, All

Noncredit Programs by OMB Budget Function Classification and

Donations

17

Table I.2: Obligations and Expenditures by Implementing Agency

for Noncredit Programs

19

Table I.3: Obligations and Expenditures by Implementing Agency

for Noncredit Programs, Excluding DOD and USAID Funds

20

Table I.4: Expenditures by Country, Noncredit Programs 21

Table I.5: Per Capita Expenditures by Country, Noncredit

Programs

22

Table I.6: Obligations and Expenditures by Program Area,

Noncredit Programs

23

Table I.7: U.S. Bilateral Credit/Insurance Programs with the FSU

by Agency

25

Table I.8: Face Value of Credit/Insurance Agreements by Country 26

Table I.9: Definition of Face Value by Program 27

Table II.1: USAID Noncredit Program Obligations and

Expenditures by Program

31

Table II.2: USDA Noncredit Program Obligations and

Expenditures by Program

39

Table II.3: USDA Credit Programs’ Face Value and Subsidy Cost 42

Table II.4: DOD Noncredit Program Obligations and Expenditures

by Program

46

Table II.5: NASA Noncredit Program Obligations and

Expenditures by Program

53

Table II.6: DOE Noncredit Program Obligations and Expenditures

by Program

60

Table II.7: USIA Noncredit Program Obligations and

Expenditures by Program

68

Table II.8: State Department Noncredit Program Obligations and

Expenditures by Program

76

Table II.9: Peace Corps Noncredit Program Obligations and

Expenditures by Program

80

Table II.10: TDA Noncredit Program Obligations and

Expenditures by Program

83

Table II.11: HHS Noncredit Program Obligations and

Expenditures by Program

87

Table II.12: Commerce Noncredit Program Obligations and

Expenditures by Program

92

Table II.13: Treasury Noncredit Program Obligations and

Expenditures by Program

97

Page 7 GAO/NSIAD-96-37 Former Soviet Union
Contents

Table II.14: Interior Noncredit Program Obligations and

Expenditures by Program

100

Table II.15: NRC Noncredit Program Obligations and

Expenditures by Program

104

Table II.16: NSF Noncredit Program Obligations and

Expenditures by Program

108

Table II.17: EPA Noncredit Program Obligations and

Expenditures by Program

111

Table II.18: OPIC Noncredit Program Obligations and

Expenditures by Program

115

Table II.19: OPIC Credit/Insurance Programs’ Face Value and

Subsidy Cost by Program

115

Table II.20: DOT Noncredit Program Obligations and

Expenditures by Program

119

Table II.21: ACDA Noncredit Program Obligations and

Expenditures by Program

123

Table II.22: CRS Noncredit Program Obligations and

Expenditures by Program

125

Table II.23: Justice Noncredit Program Obligations and

Expenditures by Program

128

Table II.24: SEC Noncredit Program Obligations and

Expenditures by Program

131

Table II.25: Eximbank Credit/Insurance Programs’ Face Value

and Subsidy Cost by Program

131

Figures Figure I.1: Obligations and Expenditures for All Agencies, All

Noncredit Programs

15

Figure I.2: OMB Budget Function Classifications and Donations

for Fiscal Year 1990 Through December 31, 1994, Obligations for

U.S. Bilateral Noncredit Programs

18

Figure I.3: Face Value and Subsidy Cost for U.S. Bilateral

Credit/Insurance Programs

24

Figure II.1: Obligations and Expenditures for

USAID-Implemented Noncredit Programs

29

Figure II.2: Appropriation Sources for USAID-Implemented

Noncredit Obligations

30

Figure II.3: Obligations and Expenditures for USDA-Implemented

Noncredit Programs

36

Figure II.4: Appropriation Sources for USDA-Implemented

Noncredit Obligations

37

Page 8 GAO/NSIAD-96-37 Former Soviet Union
Contents

Figure II.5: OMB Budget Function Classification and Donations

for USDA-Implemented Noncredit Obligations

38

Figure II.6: Obligations and Expenditures for DOD-Implemented

Noncredit Programs

43

Figure II.7: Appropriation Sources for DOD-Implemented

Noncredit Obligations

44

Figure II.8: OMB Budget Function Classifications and Donations

for DOD-Implemented Noncredit Obligations

45

Figure II.9: Obligations and Expenditures for NASA-Implemented

Noncredit Programs

51

Figure II.10: OMB Budget Function Classifications for

NASA-Implemented Noncredit Obligations

52

Figure II.11: Obligations and Expenditures for DOE-Implemented

Noncredit Programs

57

Figure II.12: Appropriation Sources for DOE-Implemented

Noncredit Obligations

58

Figure II.13: OMB Budget Function Classifications for

DOE-Implemented Noncredit Obligations

59

Figure II.14: Obligations and Expenditures for USIA-Implemented

Noncredit Programs

66

Figure II.15: Appropriation Sources for USIA-Implemented

Noncredit Obligations

67

Figure II.16: Obligations and Expenditures for State-Implemented

Noncredit Programs

74

Figure II.17: Appropriation Sources for State-Implemented

Noncredit Obligations

75

Figure II.18: OMB Budget Function Classifications for

State-Implemented Noncredit Obligations

76

Figure II.19: Obligations and Expenditures for Peace

Corps-Implemented Noncredit Programs

79

Figure II.20: Appropriation Sources for Peace

Corps-Implemented Noncredit Obligations

80

Figure II.21: Obligations and Expenditures for TDA-Implemented

Noncredit Programs

82

Figure II.22: Appropriation Sources for TDA-Implemented

Noncredit Obligations

83

Figure II.23: Obligations and Expenditures for HHS-Implemented

Noncredit Programs

85

Figure II.24: Appropriation Sources for HHS-Implemented

Noncredit Obligations

86

Page 9 GAO/NSIAD-96-37 Former Soviet Union
Contents

Figure II.25: OMB Budget Function Classifications for

HHS-Implemented Noncredit Obligations

87

Figure II.26: Obligations and Expenditures for

Commerce-Implemented Noncredit Programs

90

Figure II.27: Appropriation Sources for Commerce-Implemented

Noncredit Obligations

91

Figure II.28: OMB Budget Function Classifications for

Commerce-Implemented Noncredit Obligations

92

Figure II.29: Obligations and Expenditures for

Treasury-Implemented Noncredit Programs

95

Figure II.30: Appropriation Sources for Treasury-Implemented

Noncredit Obligations

96

Figure II.31: OMB Budget Function Classifications for

Treasury-Implemented Noncredit Obligations

97

Figure II.32: Obligations and Expenditures for

Interior-Implemented Noncredit Programs

99

Figure II.33: Appropriation Sources for Interior-Implemented

Noncredit Obligations

100

Figure II.34: Obligations and Expenditures for NRC-Implemented

Noncredit Programs

102

Figure II.35: Appropriation Sources for NRC-Implemented

Noncredit Obligations

103

Figure II.36: OMB Budget Function Classifications for

NRC-Implemented Noncredit Obligations

104

Figure II.37: Obligations and Expenditures for NSF-Implemented

Noncredit Programs

106

Figure II.38: Appropriation Sources for NSF-Implemented

Noncredit Obligations

107

Figure II.39: OMB Budget Function Classifications for

NSF-Implemented Noncredit Obligations

108

Figure II.40: Obligations and Expenditures for EPA-Implemented

Noncredit Programs

109

Figure II.41: Appropriation Sources for EPA-Implemented

Noncredit Obligations

110

Figure II.42: OMB Budget Function Classifications for

EPA-Implemented Noncredit Obligations

111

Figure II.43: Obligations and Expenditures for OPIC-Implemented

Noncredit Programs

114

Figure II.44: Obligations and Expenditures for DOT-Implemented

Noncredit Programs

117

Page 10 GAO/NSIAD-96-37 Former Soviet Union
Contents

Figure II.45: Appropriation Sources for DOT-Implemented

Noncredit Obligations

118

Figure II.46: OMB Budget Function Classifications for

DOT-Implemented Noncredit Obligations

119

Figure II.47: Obligations and Expenditures for

ACDA-Implemented Noncredit Programs

121

Figure II.48: Appropriation Sources for ACDA-Implemented

Noncredit Obligations

122

Figure II.49: OMB Budget Function Classifications for

ACDA-Implemented Noncredit Obligations

123

Figure II.50: Obligations and Expenditures for CRS-Implemented

Noncredit Programs

124

Figure II.51: Obligations and Expenditures for

Justice-Implemented Noncredit Programs

126

Figure II.52: Appropriation Sources for Justice-Implemented

Noncredit Obligations

127

Figure II.53: OMB Budget Function Classifications for

Justice-Implemented Noncredit Obligations

128

Figure II.54: Obligations and Expenditures for SEC-Implemented

Noncredit Programs

130

Page 11 GAO/NSIAD-96-37 Former Soviet Union
Contents

Abbreviations

ACDA Arms Control and Disarmament Agency

CRS Congressional Research Service

CTR Cooperative Threat Reduction

DOD Department of Defense

DOE Department of Energy

DOT Department of Transportation

EPA Environmental Protection Agency

FSU former Soviet Union

HHS Department of Health and Human Services

NASA National Aeronautics and Space Administration

NATO North Atlantic Treaty Organization

NIS Newly Independant States

NRC Nuclear Regulatory Commission

NSF National Science Foundation

OMB Office of Management and Budget

OPIC Overseas Private Investment Corporation

SEC Securities and Exchange Commission

TDA Trade and Development Agency

USAID U.S. Agency for International Development

USDA U.S. Department of Agriculture

USIA U.S. Information Agency

Page 12 GAO/NSIAD-96-37 Former Soviet Union
Page 13 GAO/NSIAD-96-37 Former Soviet Union
Appendix I 

Programwide Information

U.S. bilateral programs generally can be categorized as noncredit and

credit/insurance programs. Noncredit programs include technical

assistance, exchanges and training, food and commodity donations,

science and technological programs, and support for joint space efforts.

Credit/insurance programs include loan, loan guarantees, and insurance.

Noncredit Programs From fiscal year 1990 through December 31, 1994, the U.S. government

obligated $5.4 billion and expended $3.5 billion for bilateral, noncredit

programs with the former Soviet Union (FSU). (See figure I.1.)

Page 14 GAO/NSIAD-96-37 Former Soviet Union
Appendix I 

Programwide Information

Figure I.1: Obligations and Expenditures for All Agencies, All Noncredit Programs (Fiscal Year 1990 Through December 31,

1994)(Dollars in millions)

Total Obligations: $5,371

Total Expenditures: $3,490

0

500

1,000

1,500

2,000

2,500

3,000

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$19 $15 $753 $1,816 $2,396 $372

$4 $11 $486 $1,152 $1,379 $458

Note 1: The totals in figure I.1 include both obligations made against budget authority specifically

appropriated for FSU programs as well as funds appropriated not specifically for those countries.

Note 2: Obligations represent binding agreements, such as orders placed or contracts awarded,

that will require payment immediately or in the future. The definitions for expenditure used by

agencies responding to our inquiry varied from agency to agency. Expenditure was generally

used to mean the issuance of checks, disbursement of cash, or other liquidation of an obligation.

For example, the Defense Nuclear Agency at the Department of Defense (DOD) reported

expenditures as being disbursements. However, other agencies, such as the Europe-Newly

Independant States (NIS) Bureau at the U.S. Agency for International Development (USAID)

included accruals—amounts due to be paid—in their expenditure figures.

Page 15 GAO/NSIAD-96-37 Former Soviet Union
Appendix I 

Programwide Information

Funding for programs with the FSU came from a variety of accounts within

different budget functional classifications.1

 Programs authorized under the

Freedom Support Act were classified in the international affairs function,2

whereas the Cooperative Threat Reduction (CTR) program funding was

from the national defense function.3

 Other programs were classified under

other functions, but generally to a much lesser extent.

Although the funding for noncredit programs came from a wide variety of

sources, about 82 percent of obligations came from the budget accounts

coded against international affairs, defense, or agriculture budget

functions and about 12 percent represents the estimated value of donated

commodities that came from excess U.S. government stock. Donations,

such as medical supplies and agricultural commodities from domestic

price support programs, were originally purchased with funds from

accounts coded against the defense and agriculture budget functions. The

remaining funds were classified under other budget functions, including

general science, energy, and health. (See table I.1.)

1

The U.S. government’s budget is divided into 17 broad functional areas to provide for analyzing and

understanding the budget. The budget functional classification system is a way of grouping budgetary

resources so that federal spending can be presented according to the national needs being addressed.

The budget functional classifications are summarized in the U.S. government’s annual budget. For a

description of the system see A Glossary of Terms Used in the Federal Budget Process: Exposure Draft

(GAO/AFMD-2.1.1, Jan., 1993).

2

During fiscal years 1992 through 1995, Congress appropriated a net amount of $3.67 billion under the

Freedom Support Act authority. This figure includes a $55-million fiscal year 1994 recision.

3

The net congressional funding for CTR during fiscal years 1992 to 1995 totaled $1.232 billion.

Congress authorized $400 million in transfer authority for the program in fiscal years 1992 and 1993

and appropriated $400 million in fiscal years 1994 and 1995. However, $348 million worth of funds

expired or lost transfer authority. Congress canceled an additional $20 million through a fiscal year

1995 recission.

Page 16 GAO/NSIAD-96-37 Former Soviet Union
Appendix I 

Programwide Information

Table I.1: Obligations and

Expenditures for All Agencies, All

Noncredit Programs by OMB Budget

Function Classification and Donations

(Fiscal Year 1990 Through

December 31, 1994) 

Dollars in thousands

OMB budget function classificationa Obligations Expenditures

050 Defense $749,124 $374,052

150 International Affairs 2,854,879 1,543,387

250 General Science 249,370 128,263

270 Energy 53,787 28,881

300 Natural Resources 2,602 2,450

350 Agriculture 778,600 687,230

370 Commerce 1,500 64

400 Transportation 9,056 5,957

550 Health 19,763 19,724

750 Justice 119 119

800 General Government 14 14

Value of donated commodities 652,150b 699,527b

Total $5,370,964 $3,489,668

aTo determine the Office of Management and Budget’s (OMB) budget function classification for

agency programs, we asked agencies to provide the appropriation source used to finance their

programs. We then assigned OMB budget function classifications to the appropriation sources,

based on our knowledge about the purposes of each program and budget account descriptions

in the U.S. budget.

bFor donations, obligations represent the estimated value of signed donation agreements plus

estimated transportation costs. Expenditures are the estimated values of donated commodities

actually shipped plus the transportation costs incurred. Expenditures are shown greater than

obligations because of increases in commodity prices between the time the agreements were

signed and when the commodity was actually shipped.

Page 17 GAO/NSIAD-96-37 Former Soviet Union
Appendix I 

Programwide Information

Figure I.2: OMB Budget Function Classifications and Donations for Fiscal Year 1990 Through December 31, 1994,

Obligations for U.S. Bilateral Noncredit Programs

050 Defense (13.95%)

Other (0.62%)

Donations (12.14%)

350 Agriculture (14.50%)

270 Energy (1.00%)

250 General Science (4.64%)

150 International Affairs (53.15%)

We identified 23 departments and independent agencies that had programs

with countries of the FSU; however, the majority of obligations were

implemented by three agencies—USAID, U.S. Department of Agriculture

(USDA), and DOD. These agencies directly implemented about 83 percent of

total obligations for the noncredit portion of the U.S. program. (See table

I.2.)

Page 18 GAO/NSIAD-96-37 Former Soviet Union
Appendix I 

Programwide Information

Table I.2: Obligations and Expenditures by Implementing Agency for Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) 

Dollars in thousands

Agency Obligations

Percent of total

obligations Expenditures

Percent of

obligations

expended

USAID $1,983,051 36.92 $851,391 42.93

USDA 1,638,660 30.51 1,577,006 96.24

DOD 823,282 15.33 482,772 58.64

National Aeronautics and Space Administration

(NASA) 235,296 4.38 117,830 50.08

Department of Energy (DOE) 231,035 4.30 122,535 53.04

U.S. Information Agency (USIA) 219,326 4.08 162,427 74.06

Department of State 83,751 1.56 70,848 84.59

Peace Corps 33,813 0.63 32,908 97.32

Trade and Development Agency (TDA) 31,274 0.58 11,447 36.60

Department of Health and Human Services (HHS) 23,512 0.44 22,629 96.24

Department of Commerce 22,796 0.42 9,020 39.57

Treasury Department 11,095 0.21 6,006 54.13

Department of Interior 8,397 0.16 2,118 25.22

Nuclear Regulatory Commission (NRC) 6,950 0.13 4,142 59.60

National Science Foundation (NSF) 6,377 0.12 6,377 100.00

Environmental Protection Agency (EPA) 6,145 0.11 5,682 92.47

Overseas Private Investment Corporation (OPIC) 2,814 0.05 1,881 66.84

Department of Transportation (DOT) 1,407 0.03 1,229 87.35

Arms Control and Disarmament Agency (ACDA) 814 0.02 598 73.46

Congressional Research Service (CRS) 721 0.01 375 52.01

Department of Justice 414 0.01 414 100.00

Securities and Exchange Commission (SEC) 34 0.00 33 97.06

TOTAL $5,370,964 100.00 $3,489,668 64.97

Note: The figures in this table represent which agency expended the funds. For funds transferred

between agencies, we used the recipient agency’s data for obligations and expenditures.

Table I.3 shows the amount of funds implemented by various agencies,

excluding those funds originally appropriated to USAID or DOD. In most

cases, this means that the funds came from the agency’s own

appropriation. However, there were some instances of small transfers

between agencies.

Page 19 GAO/NSIAD-96-37 Former Soviet Union
Appendix I 

Programwide Information

Table I.3: Obligations and

Expenditures by Implementing Agency

for Noncredit Programs, Excluding

DOD and USAID Funds (Fiscal Year

1990 Through December 31, 1994)

Dollars in thousands

Agency Obligations Expenditures

Percent of

obligations

expended

ACDA $814 $598 73.46

Department of Commerce 1,500 64 4.27

DOE 100,805 57,863 57.40

Department of Interior 85 85 100.00

Department of Justice 414 414 100.00

DOT 1,377 1,199 87.07

EPA 1,494 1,494 100.00

HHS 19,596 19,239 98.18

NASA 235,048 117,592 50.03

NRC 2,511 1,300 51.77

NSF 6,377 6,377 100.00

Peace Corps 20,346 20,234 99.45

Department of State 21,278 16,101 75.67

TDA 7,012 3,947 56.29

Treasury Department 139 122 87.77

USDA 1,572,105 1,513,313 96.26

USIA 86,770 71,002 81.83

Total $2,077,671 $1,830,944 88.12

Almost half (48 percent) of noncredit program expenditures to date in the

FSU went directly for programs in Russia. Armenia and Ukraine were the

second and third largest direct recipients of U.S. programs with about

10 percent and about 7 percent of total expenditures, respectively. (See

table I.4.)

Page 20 GAO/NSIAD-96-37 Former Soviet Union
Appendix I 

Programwide Information

Table I.4: Expenditures by Country,

Noncredit Programs (Fiscal Year 1990

Through December 31, 1994) 

Dollars in thousands

Country

Total

expenditures

Percent of total

expenditures

Russia $1,661,064 47.60

Armenia 350,897 10.06

FSU-wide 258,330 7.40

Ukraine 253,794 7.27

Georgia 243,301 6.97

Kyrgyzstan 156,012 4.47

Belarus 136,677 3.92

Kazakhstan 128,201 3.67

Moldova 68,772 1.97

Tajikistan 64,235 1.84

Turkmenistan 63,909 1.83

Azerbaijan 52,198 1.50

Uzbekistan 32,608 0.93

Soviet Union 12,527 0.36

Non-Russia FSUa 4,716 0.14

Nuclear Weapon Statesb 2,429 0.07

Total $3,489,668 100.00

aExpenditures for programs where the agency could not provide a specific country breakout, but

knew that nothing was expended for Russia.

bRussia, Ukraine, Belarus, and Kazakhstan.

On a per capita basis, ranking of U.S. expenditures by country changes

dramatically. The United States has expended more per capita for

programs in Armenia, Georgia, and Kyrgyzstan than in the rest of the FSU.

Countries with larger populations, such as Russia and Ukraine, are much

lower in per capita expenditures—8th and 11th, respectively. (See table

I.5.)

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Appendix I 

Programwide Information

Table I.5: Per Capita Expenditures by

Country, Noncredit Programs (Fiscal

Year 1990 Through December 31, 1994) Country

Populationa

(thousands)

Per capita

expendituresb

Armenia 3,625 $96.80

Georgia 5,429 44.82

Kyrgyzstan 4,476 34.86

Turkmenistan 3,983 16.05

Moldova 4,355 15.79

Belarus 10,300 13.27

Tajikistan 5,704 11.26

Russia 148,200 11.21

Kazakhstan 16,683 7.68

Azerbaijan 7,457 7.00

Ukraine 51,700 4.91

Uzbekistan 22,192 1.47

Total 284,104 $11.30

aPopulation data are 1994 figures from PlanEcon Review and Outlook for the Former Soviet

Republics (Aug. 1995).

bCalculations for this table exclude expenditures for FSU-wide, Non-Russian FSU, Soviet Union,

and Nuclear Weapon States.

U.S. programs with the FSU involve a wide diversity of program areas.

Although food aid, private sector development, and emergency

humanitarian assistance accounted for about 54 percent of total

obligations for the U.S. bilateral program, the rest of the program was

spread across another 15 sectors. (See table I.6.)

Page 22 GAO/NSIAD-96-37 Former Soviet Union
Appendix I 

Programwide Information

Table I.6: Obligations and Expenditures by Program Area, Noncredit Programs (Fiscal Year 1990 Through December 31,

1994) 

Dollars in thousands

Program area Obligations

Percent of total

obligations Expenditures

Percent of total

expenditures

Food Aid $1,548,559 28.83 $1,446,576 41.45

Private Sector Development 765,735 14.26 307,081 8.80

Emergency Humanitarian Assistance 608,910 11.34 574,704 16.47

Weapons of Mass Destruction 367,655 6.85 88,290 2.53

Democratic Reform 306,701 5.71 187,052 5.36

Energy 289,662 5.39 129,337 3.71

Other 269,177 5.01 252,544 7.24

Space Research 227,553 4.24 112,888 3.23

Exchanges and Training 188,324 3.51 109,928 3.15

Environment 187,596 3.49 72,189 2.07

Resettlement for Military Officers/ Housing 172,447 3.21 16,008 0.46

Food Systems Improvement 111,132 2.07 49,381 1.42

Economic Restructuring & Finance 110,089 2.05 51,473 1.48

Health Care Improvement 87,537 1.63 41,296 1.18

Defense Conversion 72,838 1.36 14,300 0.41

U.S. Export Market Development 32,314 0.60 12,487 0.36

Scientific Research Awards 21,432 0.40 20,831 0.60

Military Education and Training 3,303 0.06 3,303 0.09

Total $5,370,964 100.00 $3,489,668 100.00

Credit/Insurance

Programs

From fiscal year 1990 through December 31, 1994, the U.S. government

signed $10 billion worth of bilateral credit agreements (loans and loan

guarantees) and insurance at a total subsidy cost of $1.8 billion.4

 (See

figure I.3.)

4

Starting in fiscal year 1992, the Federal Credit Reform Act of 1990 changed the budget treatment of

loans and loan guarantees to more accurately reflect the cost to the government. The credit subsidy

cost is the estimated long-term cost to the U.S. government of providing loans or guarantees calculated

on a net present value basis.

Page 23 GAO/NSIAD-96-37 Former Soviet Union
Appendix I 

Programwide Information

Figure I.3: Face Value and Subsidy Cost for U.S. Bilateral Credit/Insurance Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in millions)

Total Face Value: $9,980

Total Subsidy Cost: $1,081

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Fiscal year

Face value

Subsidy cost

1990 1991 1992 1993 1994 1stQ 95

$0 $1,956 $2,773 $2,002 $2,982 $267

$0 $0 $228 $435 $363 $55

The U.S. credit/insurance programs were (1) USDA short-term export credit

guarantees (the General Sales Manager 102 (GSM-102) program) and

long-term title I and Food for Progress concessional loans;

(2) Export-Import Bank (Eximbank) direct loans, loan guarantees, and

insurance; and (3) OPIC insurance and loan guarantees. (See table I.7.)

Page 24 GAO/NSIAD-96-37 Former Soviet Union
Appendix I 

Programwide Information

The focus of credit/insurance programs has shifted from the USDA GSM-102

program, which accounted for about 74 percent of all credit/insurance

programs from fiscal years 1991 to 1993, to the OPIC and Eximbank loan

guarantee programs, which accounted for about 68 percent of credit/

insurance programs approved from fiscal year 1994 through December

1994.5

Table I.7: U.S. Bilateral

Credit/Insurance Programs With the

FSU by Agency (Fiscal Year 1991

Through December 31, 1994) 

Dollars in thousands

Agency Program Face value Subsidy cost

OPIC Loan guarantee $838,300 $36,928

OPIC Insurance 983,860 N/Aa

Eximbank Loan guarantee 1,757,829 315,469

Eximbank Direct loans 88,764 17,295

Eximbank Insurance 586,530 0b

USDA Food aid loans 693,900 457,333

USDA GSM-102 loan

guarantees

5,031,016 254,267

Total $9,980,199 $1,081,292

aSubsidy cost does not apply to the OPIC insurance program because it does not fall under

Credit Reform requirements.

bCredit Reform requirements apply to the Eximbank insurance program. However, Eximbank

cannot calculate subsidy figures for its insurance program on a per country basis, and as such,

could not provide subsidy figures for its insurance program in the FSU.

As shown in table I.8, Russia has been the largest recipient of U.S.

credit/insurance agreements. The large agreements with the Soviet Union

were for the USDA GSM-102 program.

5

As of June 1995, of the $838.3 million worth of signed OPIC loan guarantee agreements, private

lenders had disbursed $142.5 million, and of the $1.758 billion worth of signed Eximbank loan

guarantees, $13.5 million had been disbursed by private lenders. Eximbank had also disbursed

$83.8 million of the $88.8 million worth of the direct loans agreements.

Page 25 GAO/NSIAD-96-37 Former Soviet Union
Appendix I 

Programwide Information

Table I.8: Face Value of Credit/Insurance Agreements by Country (Fiscal Year 1991 Through December 31, 1994) 

Dollars in thousands

Country

Fiscal year

1991

Fiscal year

1992

Fiscal year

1993

Fiscal year

1994

1st Quarter

fiscal year

1995 Total

Armenia 0 0 0 0 0 0

Azerbaijan 0 0 0 0 0 0

Belarus 0 $24,000 $6,230 $33,400 0 $63,630

FSU-wide 0 0 0 244,000 0 244,000

Georgia 0 0 7,579 0 0 7,579

Kazakhstan 0 0 24,855 47,217 $314 72,386

Kyrgyzstan 0 0 0 87,000 0 87,000

Moldova 0 9,900 10,000 20,000 0 39,900

Russia 0 789,997 1,352,373 2,292,146 230,949 4,665,465

Soviet Union $1,956,298 1,829,920 0 0 0 3,786,218

Tajikistan 0 10,000 14,000 0 0 24,000

Turkmenistan 0 0 10,000 88,531 1,370 99,901

Ukraine 0 109,022 316,919 73,921 32,100 531,962

Uzbekistan 0 0 260,055 95,819 2,284 358,158

Total $1,956,298 $2,772,839 $2,002,011 $2,982,034 $267,017 $9,980,199

Note: There were no credit agreements in fiscal year 1990.

We recorded the face value for these agreements based on the definitions

derived during discussions with the agency administering the loan,

insurance, or the guarantee program. (See table I.9.) Our subsidy cost

figures represent subsidy obligations made at the time the agreement was

signed.

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Appendix I 

Programwide Information

Table I.9: Definition of Face Value by

Program Agency Program Face value definition

USDA GSM-102 Registration amount

USDA Food aid loans Total loan amount

Eximbank Loan guarantees Value of final commitment;

actual disbursement may

occur later

Eximbank Direct loans Value of final commitment;

actual disbursement may

occur later

Eximbank Insurance Value of goods shipped

under policy

OPIC Loan guarantees Value of commitment

OPIC Insurance Value of policy committed

to project

Page 27 GAO/NSIAD-96-37 Former Soviet Union
Appendix II 

Agency Specific Information

This appendix contains financial and programmatic information on the 

215 U.S. bilateral programs with the FSU implemented by 23 U.S.

departments or independent agencies. Agencies are listed in order of total

funds obligated for noncredit programs from fiscal years 1990 through the

first quarter of fiscal year 1995. The following information is provided for

each agency:

• cumulative obligations and expenditures for noncredit programs;

• funding sources for noncredit obligations;

• OMB budget functions and donations for noncredit obligations;

• noncredit obligations, expenditures, and estimated program completion

date by program;

• credit and insurance face value and subsidy cost by program; and

• program descriptions.

As part of our data collection effort, we asked agencies to provide

information on the programs they were implementing in the FSU. The

descriptions and estimated completion dates are taken from the agencies’

responses. For the purposes of this report, we did not review or assess the

validity of the program descriptions provided. In some instances,

programs had been completed at the time of our survey.

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Appendix II 

Agency Specific Information

USAID

Figure II.1: Obligations and Expenditures for USAID-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in thousands)

Total Obligations: $1,983,051

Total Expenditures: $851,391

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$9,895 $77 $83,716 $413,802 $1,392,271 $83,290

$92 $2,243 $24,681 $133,432 $434,335 $256,608

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Appendix II 

Agency Specific Information

Figure II.2: Appropriation Sources for USAID-Implemented Noncredit Obligations (Fiscal Year 1990 Through December 31,

1994)

USAID Development Assistance (0.52%)

USAID-Economic Support Funds (7.88%)

Disaster Assistance (1.56%)

PL 480 Appropriation (1.52%)

USAID-Freedom Support Act (88.52%)

Note: P.L. 480 refers to Public Law 480.

All of the obligations for USAID-implemented noncredit programs came

from the 150 International Affairs budget function classification.

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Appendix II 

Agency Specific Information

Table II.1: USAID Noncredit Program Obligations and Expenditures by Program (Fiscal Year 1990 Through December 31,

1994) 

Dollars in thousands

Program Obligations Expenditures

Program end

date

Central Asian-American Enterprise Fund $30,000 $1,290 6/1/00

Democratic Pluralism 122,636 47,540 12/31/99

Disaster Assistance 6,342 4,532 To be

determined

Economic Restructuring and Financial Sector Reform 72,171 24,121 9/30/98

Energy Efficiency and Market Reform 184,403 124,651 2/25/99

Environmental Policy and Technology 67,173 16,513 9/30/99

Eurasia Foundation 26,000 21,069 4/30/97

European Bank for Reconstruction and Development Enterprise Fund 29,000 4,300 6/1/00

Exchanges and Training 99,113 49,863 12/30/99

Farmer-to-Farmer 30,160 21,430 9/95

Food Systems Restructuring 60,837 21,377 9/30/97

Funds for Large Enterprises in Russia 40,000 15,300 6/1/00

Health Care Improvement 83,097 37,259 12/31/98

Housing Sector Reform 207,567 36,949 11/30/96

Humanitarian Assistance for Armenian Earthquake Victims 9,909 9,868 Completed

9/30/94

Humanitarian Emergency Medical Supply for the Soviet Union 10,000 10,000 Completed

9/30/93

NIS Special Initiatives 181,700 140,812 9/30/97

Private Sector Initiatives 517,943 248,071 9/30/00

Russian-American Enterprise Fund 70,000 14,921 6/1/00

Russia Energy and Environment Commodities Import Program 90,000 0 12/13/95

Western NIS Enterprise Fund 45,000 1,525 6/1/00

Total $1,983,051 $851,391

USAID implemented the following 21 programs:

Central Asian American

Enterprise Fund

This fund is designed to stimulate restructuring and growth of small- and

medium-sized private and privatizing enterprises in Central Asia through

providing loan and equity capital and direct technical assistance.

Democratic Pluralism

Initiatives

USAID helps the FSU countries foster democratic systems characterized by

decentralized government with strong, capable local governments;

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Appendix II 

Agency Specific Information

pluralistic civil societies capable of exercising their rights and

responsibilities; and increased respect for individual rights and rule of law.

The components to address these objectives are political processes, rule

of law, public administration and local government, civil society,

independent media, and program design and management.

Disaster Assistance USAID’s Office of Foreign Disaster Assistance coordinates the U.S.

government’s aid to victims of disasters in foreign countries. The program

objective is to provide humanitarian assistance that will save the greatest

number of lives, reduce the greatest amount of human suffering, and

reduce the economic and social effects of the disaster for the greatest

number of people within the resources available.

Economic Restructuring

and Financial Sector

Reform

The project addresses policy, institutional, and technical banking skill

constraints associated with developing a sound system of government

finance and commercial banking. The project also helps develop the legal

and policy environment to support open access to economic information.

The four components of the project are fiscal reform, financial sector

reform, business environment, and program design and management.

Energy Efficiency and

Market Reform

USAID seeks to improve the efficiency and performance of energy

production and consumption, support energy privatization and market

reform, and reduce safety risks of nuclear power plants in the FSU. USAID

solely or partially implements efforts to address problems in pricing and

national policy, district heating and energy efficiency, energy subsector

restructuring, trade and international markets, and program design and

management. NRC and DOE implement the nuclear safety portion of this

project.

Environmental Policy and

Technology

This project encourages environmentally sound approaches to the

economic and social reforms in the FSU, promotes specific environmental

quality improvements, and encourages U.S. private sector participation in

the region’s environmental management. This project has four

components: environmental policy and institution building, health risks,

public awareness and environmental accountability, and the Aral Sea

initiative.

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Appendix II 

Agency Specific Information

Eurasia Foundation The Eurasia Foundation primarily provides small grants funded by public

and private resources to a variety of organizations to obtain rapid

response in economic and democratic reform, and education and training.

European Bank for

Reconstruction and

Development Enterprise

Fund

Two investment funds in Russia involve the European Bank for

Reconstruction and Development (EBRD): (1) the multilateral Russia

Small Business Fund, which funds capital and business advisory services

for micro and small enterprises in Russia and (2) the U.S.-EBRD Regional

Venture Fund, which will provide capital to recently privatized medium- to

large-sized Russian enterprises in the Lower Volga region.

Exchanges and Training The project was developed as a flexible means to provide exchanges and

training that support the transition to free market economies and

democratic governance. The project also tries to build sustainable links

between professional associations of the United States and the FSU to

foster continuing education among educational institutions and strengthen

indigenous training capacities.

Farmer-to-Farmer As part of its global Farmer-to-Farmer program, USAID’s Office of Private

Voluntary Cooperation sends American agriculturalists to the FSU to

provide direct technical assistance to farmers, food processors, farmers’

associations, and other agricultural organizations.

Food Systems

Restructuring

USAID helps promote effective and competitive agribusiness systems by

working through U.S. agribusiness associations to support the

involvement of their member companies and cooperatives in developing

long-term business ventures. The project focuses on five components:

storage systems, marketing efficiency, agribusiness partnerships,

privatized farm support for Russia, and program design and management.

Fund for Large Enterprises

in Russia

The fund is designed to stimulate the restructuring of medium- to

large-sized enterprises that are emerging from the privatization program in

Russia.

Health Care Initiatives The project addresses three key problems: (1) the declining quality of

health care, (2) the collapse of the pharmaceutical and medical supply

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Appendix II 

Agency Specific Information

industry, and (3) a financing system lacking incentives for efficiency and

cost control. The project is made up of six components: medical

partnerships, vaccine and pharmaceutical security, health monitoring,

finance and service delivery alternatives, women’s health and family

planning, and program design and management.

Housing Sector Reform The project supports the development of a market-oriented housing sector

in the FSU through legal and institutional reforms, reduced housing

subsidies, promotion of private housing markets, and creation of pilot

housing and urban finance programs. The project also finances housing for

demobilized Russian officers and job-related training.

Humanitarian Assistance

for Armenian Earthquake

Victims

This project provided humanitarian relief, medical treatment, education,

and vocational training for victims of the Armenian earthquake that

occurred on December 7, 1988. This project was completed in fiscal year

1994.

Humanitarian Emergency

Medical Assistance for the

Soviet Union

This project addressed the medical crisis in the FSU caused by critical

shortages of basic medical supplies. The project supported private

voluntary organizations’ efforts to address basic health needs by

distributing donated medical supplies and medicines to groups most

vulnerable to illness and disease. This project was completed in fiscal year

1993.

NIS Special Initiatives The NIS1

 special initiatives project supports the transition toward

participatory democracy and economic freedom by funding activities that

deal with problems such as the privatization of functions previously under

state domain. As the special initiatives expand into broader sectoral

programs, they are transferred into separate, independent projects.

Activities in this project focus on emergency humanitarian assistance,

technical support, pilot programs, and cross sectoral quick responses.

Private Sector Initiatives The project supports the privatization of state-owned enterprises, fosters

the emergence of small indigenous private businesses, and reduces the

barriers to private investment and growth. Project implementation to date

1

NIS is the abbreviation for Newly Independent States. Several departments use this abbreviation in

the title of their projects. The NIS is the same geographic area as the FSU.

Page 34 GAO/NSIAD-96-37 Former Soviet Union
Appendix II 

Agency Specific Information

has focused on support for privatization, trade and investment, and small

business. Assistance is also directed at the development of capital markets

and post-privatization initiatives to contribute to the commercial viability

of newly privatized firms.

Russia American

Enterprise Fund

This fund is designed to stimulate restructuring and market-oriented

operations of small- and medium-sized private and privatizing enterprises

in Russia through the provision of loan and equity capital and direct

technical assistance.

Russia Energy and

Environmental Commodity

Import Program

This is a grant program to introduce to Russia U.S. equipment designed to

improve the efficiency of energy use and improve environmental quality,

primarily in the energy sector. The equipment and related services will be

provided to public sector and privatizing entities.

Western NIS Enterprise

Fund

This program is designed to stimulate restructuring and market-oriented

operations of small- and medium-sized private and privatizing enterprises

in Ukraine, Belarus, and Moldova by providing loan and equity capital and

direct technical assistance.

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Appendix II 

Agency Specific Information

USDA

Noncredit Programs

Figure II.3: Obligations and Expenditures for USDA-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in Thousands)

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$116 $77 $272,503 $1,084,613 $246,749 $34,602

$116 $77 $164,622 $790,184 $557,129 $64,878

Total Obligations: $1,638,660

Total Expenditures: $1,577,006

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Appendix II 

Agency Specific Information

Figure II.4: Appropriation Sources for USDA-Implemented Noncredit Obligations (Fiscal Year 1990 Through December 31,

1994)

USAID-Economic Support Funds (0.92%)

USAID-Freedom Support Act (3.14%)

USDA Appropriation (22.07%)

Appropriations (0.00%)

Donations (26.31%)

Interior Appropriations (0.06%)

CCC Funds (47.49%)

Peace Corps

Note: CCC means Commodity Credit Corporation.

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Appendix II 

Agency Specific Information

Figure II.5: OMB Budget Function Classification and Donations for USDA-Implemented Noncredit Obligations (Fiscal Year

1990 Through December 31, 1994) 

150 International Affairs (26.11%)

300 Natural Resources (0.06%)

Donations (26.31%)

350 Agriculture (47.51%)

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Appendix II 

Agency Specific Information

Table II.2: USDA Noncredit Program Obligations and Expenditures by Program (Fiscal Year 1990 Through December 31,

1994)

Dollars in thousands

Program Obligations Expenditures

Program end

date

Agricultural Information and Related Services $111 $111 To be determined

Armenia Extension Project 1,923 1,380 3/96

Cochran Fellowships 4,209 1,602 To be determined

Donated Food Commodity Costs 1,131,038 1,135,501 To be determined

Donated Food Transportation Costs 347,210 303,020 To be determined

Emerging Democracies Program 13,702 3,291 To be determined

Energy Market Reform 87 15 9/96

International Forestry Operations 1,797 1,021 To be determined

Peace Corps Associate Director—Armenia 68 12 2/97

Public Law 480 Title I Ocean Freight Differential 75,283 69,133 To be determined

Scientific Cooperation Program 341 341 To be determined

Technical Support to USAID Europe-NIS Bureau 265 204 To be determined

Vulnerable Groups Assistance Program

62,626 61,375

Completed

12/31/94

Total $1,638,660 $1,577,006

USDA implemented the following 13 noncredit programs:

Agricultural Information

and Related Services

With funding from USAID, USDA and its network of worldwide cooperating

institutions seek to provide to USAID personnel research, analysis,

problem-solving literature, data, and advice on all aspects of sustainable

agricultural production, agro-enterprise development, natural resources

management, and environmental protection.

Armenia Extension Project With funding from USAID, since January 1992, experts from affiliated land

grant universities have worked from 1 month to 1 year with Armenian

Agricultural Ministry and local officials to (1) assist in establishing an

extension service to provide newly privatized farmers with the knowledge

and skills needed to survive in a market economy and (2) provide

short-term technical assistance and leadership with expatriate

nongovernmental organizations to assist Armenian farmers in overcoming

a food production and distribution crisis.

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Appendix II 

Agency Specific Information

Cochran Fellowship

Program

Since 1992, senior and mid-level FSU specialists and administrators have

been trained in agricultural trade, agribusiness development, management,

policy, and marketing from the public and private sectors. The program

works closely with USDA agencies, U.S. agricultural trade and market

development associations, U.S. colleges and universities, and agribusiness

to implement training programs.

Donated Food Commodity

Costs

Under the section 416(b) program, surplus agricultural commodities

owned by the Commodity Credit Corporation are donated to friendly

countries overseas. Under the Food for Progress program, commodities

are provided on a grant basis to emerging democracies committed to

expanding free enterprise elements in their agricultural economies.

Donated Food

Transportation Costs

The costs provided here were incurred in transporting donated food

commodities under the section 416(b) and Food for Progress programs.

Emerging Democracies

Program

Through this program USDA shares U.S. agricultural and agribusiness

expertise with emerging democratic countries and in turn develops,

maintains, and expands markets for U.S. agricultural exports. USDA then

carries out follow-up activities to enhance the effectiveness of the

countries’ food and agricultural systems. The program is funded up to

$10 million per year and combines the dual objectives of market

promotion and development assistance.

Energy Market Reform With funding from USAID, this program provides for a full-time specialist

working in USAID to provide technical assistance in power and heating

restructuring, utility commercialization and management improvement,

and privatization.

International Forestry

Operations

USDA Forest Service units and the Federal Forest Service in Russia have

three ongoing partnerships. Efforts focus on (1) developing a long-term

partnership in environmental education, ecotourism, reforestation, and

new technology development in Magadan; (2) fostering the protection and

management of Russia’s Far East forests; and (3) cooperating in research

and land management planning in two demonstration projects in central

Siberia.

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Appendix II 

Agency Specific Information

Peace Corps Associate

Director—Armenia

An interagency agreement between the Peace Corps and USDA provides for

recruiting USDA personnel to serve as associate Peace Corps Directors for

projects overseas. In this case, using funds from Peace Corps, USDA

provided an associate Peace Corps Director for agribusiness projects in

Armenia. The incumbent establishes assignments for volunteers and

works with them in the field.

Public Law 480 Title I

Ocean Freight Differential

The payment of ocean freight differential (the difference between the cost

of shipping on U.S.-flagged and foreign-flagged vessels) on title I programs

is designed to support the shipment of 75 percent of U.S. food aid on U.S.

vessels, assuming the vessels are available at the time of shipment. The

objective is to support the U.S. maritime industry in maintaining a shipping

capability.

Scientific Cooperation

Program

This program helps scientists from USDA, the university community, and

the private nonprofit research organizations seek new knowledge and

technology beneficial to the U.S. and cooperating counties by providing

access to international research in agriculture and forestry.

Technical Support to the

USAID Europe-NIS Bureau

The program provides technical services to support the development and

implementation of USAID human resource development programs in the

FSU. With funding from USAID, USDA provides three consultants to USAID to

identify (1) training needs, (2) needs for educational and professional

association partnership and linkages, and (3) FSU participants for training

programs.

Vulnerable Groups

Assistance Program

With funding from USAID, this program procured food commodities for use

in USAID food assistance activities in Armenia, Azerbaijan, Georgia, and

Tajikistan. The program also provided for cargo survey contracts for

discharge; procurement, inspection, and delivery of commodities to U.S.

ports; and contracting cargo discharge surveys for delivery of commodities

at consignee warehouses.

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Credit Programs

Table II.3: USDA Credit Programs’ Face Value and Subsidy Cost (Fiscal Year 1990 Through December 31, 1994)

Dollars in thousands

Program Face value Subsidy cost

Program end

date

Food Aid Commodity Credits $693,900 $457,333 To be

determined

GSM-102 Credit Guarantees 5,031,016 254,267 To be

determined

Total $5,724,916 $711,600

USDA implemented the following two credit programs:

Food Aid Commodity

Credits

Through title I of Public Law 480 and the Food for Progress Program, USDA

provided for government-to-government sales of agricultural commodities

to FSU countries under long-term credit arrangements. Repayments are in

U.S. dollars on credit terms up to 30 years, with up to a 7-year grace

period. The objectives of the program include providing food to combat

hunger, expanding international trade, expanding U.S. agricultural

commodity markets, and fostering the development of private enterprise

in the recipient country.

GSM-102 Credit

Guarantees

This program provides a guarantee to U.S. exporters or banking

institutions should foreign buyers fail to make payments on goods

purchased. The program provides short-term (up to 3 years) credit to

foreign governments or private sector importers to help increase U.S.

exports of agricultural products, improve the competitive position of U.S.

products, and assist developing countries in meeting their food and fiber

needs.

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DOD

Figure II.6: Obligations and Expenditures for DOD-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in Thousands)

0

100,000

200,000

300,000

400,000

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$0 $0 $301,259 $119,659 $364,872 $37,492

$0 $0 $250,914 $113,428 $84,080 $34,350

Total Obligations: $823,282

Total Expenditures: $482,772

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Figure II.7: Appropriation Sources for DOD-Implemented Noncredit Obligations (Fiscal Year 1990 Through December 31,

1994)

Foreign Operations Appropriation (0.23%)

Donations (26.84%)

State Appropriation (0.01%)

DOD Appropriation (72.92%)

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Figure II.8: OMB Budget Function Classifications and Donations for DOD-Implemented Noncredit Obligations (Fiscal Year

1990 Through December 31, 1994) 

Donations (26.84%)

150 International Affairs (0.24%)

050 Defense (72.92%)

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Table II.4: DOD Noncredit Program Obligations and Expenditures by Program (Fiscal Year 1990 Through December 31,

1994)

Dollars in thousands

Program Obligations Expenditures

Program end

date

Arctic Nuclear Waste $23,951 $11,889 To be determined

Armored Blankets 2,870 2,531 Completed 6/94

Chemical Weapons Destruction 20,271 4,605 To be determined

Communication Link 935 159 6/30/96

Defense Demilitarization Enterprise Fund 7,670 7,670 To be determined

Defense Military Contacts 7,660 1,594 To be determined

Emergency Response Training/Equipment 2,647 2,223 12/31/95

Environmental Restoration/Project Peace 6,868 711 7/21/97

Export Controls 4,113 163 9/30/97

Fissile Material Storage Containers 45,563 1,157 10/31/96

Fissile Material Storage Facility Design 5,970 5,213 7/31/95

Fissile Material Storage Facility Equipment 26,521 1,594 12/31/98

FSU Science and Technology Program 72,460 72,460 To be determined

Humanitarian Assistance 336,528 330,425 To be determined

International Military Education and Training (IMET) 3,303 3,303 To be determined

Industrial Partnership/Defense Conversion 62,117 8,041 3/8/98

Joint Contact Teams 184 38 To be determined

Material Control and Accountability 2,690 194 12/17/98

Other Assessments 8,770 5,651 To be determined

Science and Technology Centers 21,263 16,073 To be determined

Strategic Offensive Arms Elimination 160,928 7,078 6/30/02

Total $823,282 $482,772

DOD implemented the following 21 programs:

Arctic Nuclear Waste

Assessment Program

Under this program, the Office of Naval Research identifies, studies, and

assesses FSU countries’ nuclear waste disposal in the Arctic regions.

Armored Blankets This program provided armored blankets to the Russians to augment the

protective capability of containers and vehicles carrying nuclear weapons

to and within destruction facilities and necessary related storage facilities.

DOE assisted in this program with funding from DOD.

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Chemical Weapons

Destruction

This program provides chemical weapons destruction assistance,

including training and related services. Specific program activities include

evaluating the feasibility of a two-step neutralization process to destroy

chemical weapons and developing an analytical chemical weapons

destruction laboratory.

Communication Link DOD helps to establish (1) a continuous communications link between

Belarus and the United States and (2) a government-to-government

communications link between the United States and Ukraine and

Kazakhstan. DOD provides equipment and training to all three countries to

help establish the ability to transmit notifications required by START

[Strategic Arms Reduction Treaty] and INF obligations. The State

Department assisted in this program with funding from DOD.

Defense Demilitarization

Enterprise Fund

The fund is earmarked for ventures involving Western partners and former

producers of weapons of mass destruction in Russia, Kazakhstan, Belarus,

and Ukraine. The ventures would pursue commercial, privately owned

endeavors. Annual U.S. grants to the fund would be needed until the loans

and equity shares provided substantive returns on the investment.

Defense and Military

Contacts

Defense and military contacts are intended to encourage and assist the FSU

military in restructuring and downsizing its defense establishment,

encourage the FSU’s support of demilitarization activities and democratic

reforms, help the military to better understand civil-military relations, and

increase U.S. military understanding of the FSU. The primary goal of this

program is to establish a network of professional exchanges that gives FSU

defense and military establishments a stake in continued good relations.

Emergency Response

Training/Equipment

DOD provides emergency response equipment to Belarus, Kazakhstan,

Ukraine, and Russia to facilitate the safe and secure transportation and

storage of nuclear weapons in connection with their destruction. DOE

assisted in this program with funding from DOD.

Environmental

Restoration/Project Peace

This program provides equipment, training, and services to facilitate

Belarus’ environmental restoration of former strategic rocket forces

facilities.

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Export Controls This program provides assistance to Belarus, Kazakhstan, and Ukraine in

the development of export control institutions and infrastructure to

prevent the proliferation of weapons of mass destruction. The assistance

encompasses four areas of activity: policy consultations and project

development, export control technical interaction, training and technical

assistance, and equipment. The Department of Commerce and the

Customs Service assisted in this program with funding from DOD.

Fissile Material Storage

Containers

This program provides the Russians fissile material containers for the safe

and protective transport and storage of fissile material in connection with

the destruction of nuclear weapons. DOE assisted in this program with

funding from DOD.

Fissile Material Storage

Facility Design

This program provides technical assistance for the design of a safe, secure,

and ecologically sound storage facility for fissile material delivered from

the destruction of nuclear weapons. DOE assisted in this program with

funding from DOD.

Fissile Material Storage

Facility Equipment

DOD will provide material, services, and training relating to the

construction of a safe, secure, and ecologically sound storage facility for

fissile material derived from the destruction of nuclear weapons. DOE

assisted in this program with funding from DOD.

FSU Science and

Technology Program

The program is designed to advance understanding of science and

technology by establishing long-term, collaborative relationships with the

nations of the FSU.

Humanitarian Assistance DOD covered the costs for transporting private sector and U.S. government

excess material as humanitarian assistance to the FSU. The funding levels

shown in table II.4 include the value of U.S. government commodities

shipped by DOD from fiscal years 1992 to 1993 plus the transportation costs

incurred shipping those goods plus goods donated by private groups from

fiscal year 1992 through the first quarter of fiscal year 1995. These figures

do not include funds that were allocated to and spent by the State

Department during fiscal year 1994 and the first quarter of fiscal year 1995

for transporting humanitarian assistance.

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IMET This program provides military education and training to military and

related civilian personnel of foreign countries. The purpose of this training

is to encourage effective and mutually beneficial relations and increased

understanding between the United States and foreign countries. The IMET

program includes courses in civil-military relations, military justice and

human rights, and defense resources, which are referred to as Expanded

IMET courses.

Industrial

Partnership/Defense

Conversion

DOD provides funding for (1) defense industry conversion and construction

of housing needed for demobilization of strategic rocket forces officers in

Belarus; (2) joint ventures between Western industries and Ukrainian

defense firms converting to production of civilian goods, and efforts to

convert several Ukrainian defense companies to the production of

prefabricated housing for former military officers; (3) the conversion of

Kazakhstani defense industries to civilian production; and (4) joint

ventures between U.S. firms and Russian firms formerly involved in the

production of weapons of mass destruction.

Joint Contact Teams The European Command sends teams to FSU countries to show FSU

military officials how the U.S. military performs specific tasks. The

funding amounts shown in table II.4 do not include amounts obtained from

CTR funding for Joint Contact programs.

Material Control and

Accountability

DOD provides material, training, goods, and services to Ukraine,

Kazakhstan, Belarus, and Russia for the development of systems for

controlling, accounting for, and physical protection of nuclear materials to

prevent nuclear weapons proliferation. DOE and NRC assist in this program

with funding from DOD.

Other Assessments This program covers the developmental, administrative, and support costs

of the overall CTR effort and of each project in the initial stages until

specific requirements are identified and proposed obligations are reported

to Congress for the projects.

Science and Technology

Centers

Funding is provided to support the Science and Technology Center in

Ukraine (STCU) and the International Science and Technology Center in

Russia (ISTC). The STCU develops, approves, finances, and monitors

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science and technology projects for peaceful purposes, which are to be

carried out primarily at institutions in Ukraine. The ISTC attempts to

prevent the proliferation of technologies related to military capabilities,

minimize the migration to potential proliferant nations of people involved

in the development of weapons of mass destruction, and assist in the

transition to a market-based economy. The State Department assisted in

this program with funding from DOD.

Strategic Offensive Arms

Elimination

DOD provides assistance to (1) Ukraine for dismantling its strategic nuclear

arms and deactivating SS-19 and SS-24 missiles located on Ukrainian

territory; (2) Kazakhstan for destroying SS-18 silos and launch control

facilities, heavy bombers and disposition of liquid rocket propellant;

(3) Russia to accelerate the dismantling of Russian strategic offensive

arms; and (4) Belarus for elimination of foundations of SS-25 fixed

structures.

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NASA

Figure II.9: Obligations and Expenditures for NASA-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in Thousands)

0

20,000

40,000

60,000

80,000

100,000

120,000

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$0 $0 $12,051 $12,071 $108,497 $102,677

$0 $0 $2,786 $5,166 $62,703 $47,175

Total Obligations: $235,296

Total Expenditures: $117,830

Almost all—99.89 percent—of funding for NASA-implemented programs in

the FSU came from NASA appropriations. The remaining funds were from

DOD appropriations.

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Figure II.10: OMB Budget Function Classifications for NASA-Implemented Noncredit Obligations (Fiscal Year 1990 Through

December 31, 1994) 

400 Transportation (3.33%) 050 Defense (0.11%)

250 General Science (96.57%)

Obligation and expenditure figures for the following NASA programs

include NASA grants and subgrant to FSU entities; contracts, and

subcontracts to FSU entities; other procurements to FSU entities; purchase

of equipment donated, but not loaned, to FSU entities; and travel costs

incurred by NASA for FSU specialists to travel to the United States for NASA

programs. These figures do not include NASA costs incurred for cooperative

activities with FSU entities that did not involve the exchange of funds.

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Table II.5: NASA Noncredit Program Obligations and Expenditures by Program (Fiscal Year 1990 Through December 31,

1994)

Dollars in thousands

Program Obligations Expenditures

Program end

date

Aeronautics Research and Technology Base $582 $442 6/95

Functional Energy Block (FGB) 42,100 27,712 5/98

Galilieo S-Band Study 70 70 Completed 2/93

High Speed Research Program 5,695 4,215 To be determined

Hypersonics Research and Technology 1,800 489 11/96

International Space Welding Experiment 136 0 6/98

Joint U.S.-Russian Human Space Flight Activities 150,000 61,537 12/31/97

Laser Sensing Technology Program 10 10 Completed 2/94

Life and Biomedical Sciences 5 5 Completed 9/92

Life Sciences Biosatellite Program 6,614 0 7/98

Mars 1994 1,617 1,602 9/98

Microgravity Science and Applications Conference 74 74 9/95

Miscellaneous Space Access and Technology Projects 1,963 1,519 To be determined

Miscellaneous Space Science Research 52 52 To be determined

Mission to Planet Earth 100 50 4/21/96

Orbital Debris Program 6 6 Completed 9/92

Science Internet 150 150 9/95

Shuttle Support for MIR 1 Docking Module 19,500 15,075 6/95

Soyuz Assured Crew Rescue Vehicle 3,370 3,370 Completed 9/93

Space Station Engineering Operability Studies

1,000 1,000

Completed

1/31/94

Space Station Redesign 340 340 Completed 9/93

Support for Shuttle Mission at Gagarin Cosmonaut 112 112 12/31/96

Total $235,296 $117,830

NASA implemented the following 22 programs:

Aeronautics Research and

Technology Base

This program will assess the potential utility and technical tradeoffs

associated with Wing-in-Ground Effect aircraft, commonly referred to as

wingships, to help NASA determine whether to build/operate such aircraft

in the United States.

FGB-Functional Energy

Block

The goal of the program is to design, develop, manufacture, test, and

deliver one flight FGB energy block, including spare parts, simulators, and

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specialized equipment for the international space station. The contractor

will transport the FGB between the Khrunichev site and launch complex,

support prelaunch preparations, operate and verify FGB performance in

orbit over 15 days from launch, and provide FBG standards and FGB

ground personnel training.

Galileo S-Band Study This program studied the capabilities of Russian deep space

communications network to support the Galileo S-Band mission.

High Speed Research This program is to modify the Tupolev Tu-144 supersonic transport aircraft

and conduct up to 39 test flights to support development of new

technologies for next-generation supersonic transport aircraft.

Hypersonics Research and

Technology

This program is to build and test a scramjet engine at Mach 6.5. The

objective of the program is to help NASA assess hypersonic aircraft engine

technologies.

International Space

Welding Experiment

The program is to conduct a flight demonstration of the Paton universal

hand tool on the NASA space shuttle to test the capabilities of the tool to

perform contingency repairs of space station materials and structures.

Joint U.S.-Russian Human

Space Flight Activities

This program provides hardware and services designed to enhance MIR

operations capabilities; perform joint space flights; and conduct joint

activities to design, operate, and use the space station. The objectives of

the program are to (1) develop, maintain, and enhance capabilities and

operations to allow humans to live and work continuously in space,

(2) enable the reduction of costs of future U.S. space initiatives,

(3) enhance U.S. understanding of long-duration operations, (4) enable the

United States and Russia to develop common systems and operating

procedures, and (5) advance the U.S. national space programs and

aerospace industries.

Laser Sensing Technology

Program

The program developed all-solid state laser systems for atmospheric

remote sensing to study climate change.

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Life and Biomedical

Sciences

The program created a database of manned space life-support systems

developed in the FSU.

Life Sciences Biosatellite

Program

The program provides NASA life science experiments on two Russian-built

BION satellite missions in 1996 and 1998.

Mars 1994 This program is to fly a U.S. Mars oxidant experiment, a soil

reactivity/composition experiment consisting of two instruments, on the

Russian Mars lander to enhance the use of the lander and provide critical

science data not otherwise available.

Microgravity Science and

Applications Conference

Support

This program reflects miscellaneous projects in support of the NASA

microgravity sciences and applications program, including the

procurement of data on Russian microgravity science results and flight

apparatus performance, Russian travel costs to support microgravity

projects, and a grant to support a Russian conference.

Miscellaneous Space

Access and Technology

Projects

The program supports miscellaneous projects to enhance NASA’s space

access and technology research.

Miscellaneous Space

Science Research

This program supports miscellaneous space science research projects,

such as Russian support in developing a near-global long-duration balloon

capability for mid-latitude applications, and pays for travel costs of

Russian specialists supporting space science projects.

Mission to Planet Earth The program is to procure interface definition documents for the Russian

Meteor-3/3m, GOMS and RESURS spacecraft and preliminary interface

control documents for the SAGE-III instrument and the TOMS instrument.

The objective is to assess the technical feasibility of flying NASA’s Mission

to Planet Earth instruments on planned Russian missions.

Orbital Debris Program This program defined the orbital debris environment, including measuring,

modeling, and mitigation.

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Science Internet This program provides communication of scientific and programmatic

data between NASA and key Russian institutes engaged in space science

cooperation with NASA.

Shuttle Support for MIR 1

Docking Module

Under this program, NASA built a docking mechanism to allow docking

between the NASA space station and the Russian MIR space station to

enable on-orbit joint U.S.-Russian life science investigations, resupply MIR

logistics, and exchange crews.

Soyuz Assured Crew

Rescue Vehicle

This program studied the extent Russian space systems and operating

capabilities could be integrated with NASA’s space systems and equipment.

Space Station Engineering

Operability Studies

The program supported a feasibility study to define Russian participation

in the space station.

Space Station Redesign This program allowed NASA to obtain Russian expertise and input for the

space station transition team’s assessment of the viability of using Russian

hardware for the space station redesign.

Support for STS-71 Shuttle

Mission at Gagarin

Cosmonaut Training

Center

This program supports the U.S. Director of Operations at the Gagarin

Cosmonaut Training Center in Star City, Russia, by paying for living

quarters, transportation, training, and office expenses. The objective of the

program is to ensure smooth operations and training for the U.S.

astronauts being trained to fly aboard the Russian MIR as part of the

cooperative Shuttle MIR Program.

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DOE

Figure II.11: Obligations and Expenditures for DOE-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in Thousands)

0

20,000

40,000

60,000

80,000

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$0 $50 $37,649 $70,956 $53,437 $68,943

$0 $50 $13,768 $31,568 $62,570 $14,579

Total Obligations: $231,035

Total Expenditures: $122,535

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Figure II.12: Appropriation Sources for DOE-Implemented Noncredit Obligations (Fiscal Year 1990 Through December 31,

1994)

USAID-Freedom (28.11%)

NRC Appropriations (0.22%)

EPA Appropriations (0.05%)

Appropriations (43.37%)

DOD Appropriations (28.26%)

Support Act

DOE

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Figure II.13: OMB Budget Function Classifications for DOE-Implemented Noncredit Obligations (Fiscal Year 1990 Through

December 31, 1994) 

050 Defense (42.97%)

300 Natural Resources (0.05%)

270 Energy (21.99%)

250 General Science (6.88%)

150 International Affairs (28.11%)

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Table II.6: DOE Noncredit Program Obligations and Expenditures by Program (Fiscal Year 1990 Through December 31,

1994)

Dollars in thousands

Program Obligations Expenditures

Program end

date

Armored Blankets $366 $366 Completed 6/94

Atmospheric Radiation Measurement Program 382 280 4/09

Clean Coal Technology Projects in Ukraine 2,547 82 3/96

Emergency Response Equipment 15,226 12,716 To be determined

Energy Efficiency Projects in Russia 550 411 12/96

Energy Efficiency and Market Reform Conferences and Workshops 892 741 To be determined

Environmental Management 10,765 10,763 To be determined

Export Assistance 3,437 2,382 To be determined

Fissile Material Storage Facility Design 8,156 7,684 To be determined

Fissile Material Storage Facility Equipment 205 96 To be determined

Fissile Material Storage Containers 4,500 3,517 12/95

Fusion Energy Research and Development Program 998 847 To be determined

Human Genome Program 498 429 To be determined

International Nuclear Safety Program 62,839 23,258 To be determined

Joint Coordinating Committee on the Fundamental Properties of Matter 1,775 1,256 7/96

Lab-to-Lab Collaboration (nonweapons) 9,843 5,530 To be determined

Limited Ground Radiological Survey—Semipalatinsk 150 150 Completed 7/94

Material Protection, Control, and Accountability 9,882 6,370 To be determined

Material Protection, Control, and Accountability Lab-to-Lab 8,862 3,863 To be determined

Moscow and Ukraine Energy Efficiency Centers 467 143 12/95

NIS Industrial Partnering Program 20,000 1,620 7/97

Nuclear Reactor Simulator 11,000 0 9/97

Oil and Gas Technology Center in Russia 370 410 To be determined

Purchase of Russian Pu-238 11,777 5,928 12/97

Russian Highly Enriched Uranium Conversion/Blending Facility 396 338 Completed 10/94

Russian Railcar Surety Study 150 150 To be determined

Security Enhancement for Railcars 21,485 18,420 9/95

Superconducting Super Collider 14,122 8,069 Completed 2/95

Support for Bilateral Arms Reduction Efforts 475 332 To be determined

Support for Project Sapphire 3,862 3,233 To be determined

Support for Science and Technology Centers 1,683 1,509 5/95

U.S./FSU Joint Coordinating Committee Civilian Nuclear Reactor Safety 3,075 1,544 To be determined

U.S./Russia Joint Coordinating Committee for Radiation Effects Research 300 98 To be determined

Total $231,035 $122,535

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DOE implemented or supported the following 33 programs:

Armored Blankets With funding from DOD, DOE supported DOD efforts to provide armored

blankets to Russia to augment the protective capability of containers and

vehicles carrying nuclear weapons to and within destruction facilities.

Atmospheric Radiation

Measurement Program

The program involves a few Russian scientists researching the effects of

clouds and radiation on the global climate and the earth’s energy balance.

Clean Coal Technology

Projects in Ukraine

With funding from USAID, DOE is trying to identify cost-effective technical

approaches for upgrading utility power plants burning low-grade

Ukrainian anthracite and provide a conceptual design for their use. The

projects also assists Ukraine in introducing clean coal technology to

upgrade its coal-fired power plants.

Environmental

Management

This program includes work in Russia on the transportion of

contaminants, technical identification and workshops, and an

international environmental assessment.

Emergency Response

Equipment

With funding from DOD, DOE provides emergency response equipment for

the safe, secure transportation of nuclear weapons, protective clothing,

radiation survey instruments, portable radiography equipment, liquid

abrasive cutter, dosimeters, and other radiation protection equipment.

Energy Efficiency and

Market Reform

Conferences and

Workshops

As part of the Gore-Chernomyrdin process,2 DOE and the Russian Ministry

of Fuels have (1) cosponsored the International Energy and Law

Conference, (2) cooperated through DOE technical assistance, and

(3) worked together in various energy efficiency projects.

Energy Efficiency Projects

in Russia

DOE provides technical assistance and supports research promoting energy

efficiency in Russia. Activities include supporting the Russian-American

Memorandum of Cooperation for Energy Efficiency, which was signed in

October 1993.

2

The Gore-Chernomyrdin Commission is a bilateral effort between Russia and the U.S. to advance

common interests in a variety of areas, including energy, space, science and technology, environment,

business development, health, and defense diversification. The Office of the Vice President oversees

U.S. activities carried out by executive agencies for the Commission.

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Export Assistance DOE provides technical assistance, training, and a database to support and

upgrade export controls in Russia and the other states of the FSU.

Fissile Material Storage

Containers

With funding from DOD, DOE provides design assistance and technical

support for the fissile material storage containers for the safe and secure

transportation and storage of nuclear weapons material.

Fissile Material Storage

Facility Design

With funding from DOD, DOE provides design assistance for the

construction of a safe, secure, and ecologically sound storage facility for

fissile material derived from the destruction of nuclear weapons.

Fissile Material Storage

Facility Equipment

With funding from DOD, DOE defines specifications for material control and

accountability equipment associated with a fissile material storage facility.

Fusion Energy Research

and Development Program

This program funds individual research subcontractors or procurements

initiated by U.S. fusion program contractors and grantees with fusion

research centers in Russia. Each action typically costs $5,000 to $95,000.

Through these actions, the U.S. fusion program has benefited from

Russian technical expertise and specialized equipment.

Human Genome Program DOE’s Office of Health and Environmental Research provides small grants

directly to Russian molecular biologists to promote the sharing of research

in this area.

International Nuclear

Safety Program

With funding from USAID, DOE is trying to improve the level of safety in

Soviet-designed nuclear power plants by (1) strengthening the operation

and upgrading the physical conditions of plants, (2) promoting a safety

culture, and (3) facilitating development of safety infrastructure in

countries operating Soviet-designed reactors.

Joint Coordinating

Committee on the

Fundamental Properties of

Matter

The primary focus of this program is the exchange of scientists and

cooperative research and development activities, experiments, theory, and

accelerator techniques in high energy and nuclear physics. Funds were

used to purchase Russian magnets and detector components in support of

U.S. high energy physics experiments, and are being used in support of the

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Continuous Electron Beam Accelerator Facility and the Relativistic Heavy

Ion Collider experiments in nuclear physics.

Lab-to-Lab Collaborations

(nonweapons)

DOE participates in scientific collaboration with Russian scientists on

nonweapons-related topics such as defense conversion, nonproliferation,

technology transfer, and other commercial interests.

Limited Ground

Radiological Survey at

Semipalantinsk Nuclear

Test Site

DOE conducted a radiation survey to assess the level and extent of

contamination caused by Soviet nuclear testing at the test site in

Kazakhstan.

Material Protection,

Control, and

Accountability

With partial funding from DOD, DOE provides material protection, control,

and accountability assistance to the FSU, thereby enhancing their

safeguards culture, thus increasing accountability, and deterring thefts of

direct use nuclear material.

Material Protection,

Control, and

Accountability Lab-to-Lab

Program

With partial funding from DOD, DOE provides material protection, control,

and accountability assistance to Russian labs, thereby enhancing their

safeguards culture, thus increasing accountability, and deterring thefts of

direct use nuclear material.

Moscow and Ukraine

Energy Efficiency Centers

With funding from USAID, Energy supports the ongoing efforts of the

Moscow Center for Energy Efficiency. It also helps support an energy

efficiency center in Ukraine.

NIS Industrial Partnering

Program

With funding from USAID, this program prevents proliferation of weapons

of mass destruction through cooperative projects between the United

States and defense-related industries in the FSU. The goal of these

cooperative projects is to redirect technologies, materials, resources, and

people in the FSU toward nonmilitary scientific and commercial research

and development.

Nuclear Reactor Simulator With funding from DOD, the program will provide Ukraine a nuclear reactor

simulator for training nuclear power plant operators, engineers,

inspectors, and other regulatory personnel. The program will provide

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Agency Specific Information

simulator-specific development, proposal evaluation, contractor selection,

and ongoing support for 3 years.

Oil and Gas Technology

Center in Russia

The goal of this program is to establish an oil and gas technology center in

a producing region of the Russian Federation to address technical,

economic, and institutional issues associated with the decline in Russian

oil and gas production.

Purchase of Russian

Plutonium-238 (Pu-238)

Under terms of an agreement between DOE and Minatom, the United States

purchases Pu-238, a nonweapons grade isotope of plutonium, from the

Mayak Production Association in Russia. The United States uses Pu-238

for civilian space power applications and Russia uses the hard currency

from the sales for environmental remediation and social rehabilitation of

the Chelyabinsk region.

Russian Railcar Surety

Study

This project, in conjunction with a larger project for design and

procurement of railcar modification kits, studies mechanisms for

improving the safety of Russian rail transportation of dismantled nuclear

weapons.

Russian Highly Enriched

Uranium

Conversion/Blending

Facility

This program supports Russian design, development, and implementation

of nuclear material protection, control, and accountability systems at

facilities in Russia associated with the U.S.-Russian highly enriched

uranium purchase.

Security Enhancement for

Railcars

With funding from DOD, DOE provides kits and spares for cargo cars and

guard cars to ensure the safe and secure transportation of nuclear

weapons and nuclear weapons material.

Superconducting Super

Collider

Expenditures during fiscal years 1994 and 1995 were settlements with

Russian laboratories as a result of termination of the program. The

program is now closed.

Support for Bilateral Arms

Reduction Efforts

DOE supports laboratory activities directed toward verification of fissile

material production, implementation of agreements to increase

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Agency Specific Information

transparency of warhead dismantlement, and construction of facilities to

store components and materials from dismantled nuclear weapons.

Support for Project

Sapphire

This project provided logistic support and salaries for scientists involved

in the movement of highly enriched uranium from Kazakhstan to the

United States; relocation of repackaging equipment; on-site support of the

repackaging team; and conveying the material by safe, secure transport in

the United States.

Support for Science and

Technology Centers

DOE provides technical staff members to work at ISTC in Moscow and

assist in the establishment of STCU.

U.S./FSU Joint

Coordinating Committee

for Civilian Nuclear

Reactor Safety

DOE works with Russia, Ukraine, and Belarus to address civilian nuclear

reactor safety issues. Recent work emphasizes health impacts, including

thyroid disease in children and leukemia in cleanup workers.

U.S./Russian Joint

Coordinating Committee

for Radiation Effects

Research

DOE supports a bilateral agreement calling for support and facilitation of

cooperative research on (1) health and environmental effects of nuclear

contamination in Russia and (2) long-term effects of low-level chronic

exposure to radiation.

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USIA

Figure II.14: Obligations and Expenditures for USIA-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in Thousands)

0

20,000

40,000

60,000

80,000

100,000

120,000

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$4,299 $5,858 $20,202 $60,286 $110,611 $18,070

$2,149 $5,078 $13,046 $41,188 $84,901 $16,065

Total Obligations: $219,326

Total Expenditures: $162,427

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Figure II.15: Appropriation Sources for USIA-Implemented Noncredit Obligations (Fiscal Year 1990 Through December 31,

1994)

USAID-Economic Support Funds (2.08%)

USIA Appropriation (39.56%)

 (58.36%)

USAID-Freedom

Support Act

All of the obligations for the U.S. Information Agency (USIA)-implemented

noncredit programs came from the 150 International Affairs budget

function classification.

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Table II.7: USIA Noncredit Program Obligations and Expenditures by Program (Fiscal Year 1990 Through December 31,

1994)

Dollars in thousands

Program Obligations Expenditures

Program end

date

1,000/1,000 Program $21,620 $16,019 To be determined

Academic Specialists 329 286 To be determined

America House 2,228 2,228 9/95

Book Translations 60 60 Completed 3/94

Business Exchanges 3,414 1,865 6/96

Diplomatic Training 205 187 Completed 3/94

Fulbright Scholars and Students 11,412 9,930 To be determined

Graduate and Undergraduate Top-up 11,830 7,938 8/97

Graduate Student Exchange Program 22,219 15,326 9/96

Humphrey Fellowship Program 590 429 To be determined

International Visitor Program 10,500 7,982 To be determined

Local and Regional Government 2,602 2,363 9/95

Muskie Fellowship Program 22,735 18,592 To be determined

NIS Media Assistance 2,123 1,202 To be determined

NIS Program Administration Costs 378 378 7/96

NIS Training 5,616 4,904 To be determined

NIS Youth Secondary Exchange 56,900 38,062 7/96

Parliamentary Exchange 1,918 1,918 To be determined

Program Evaluation and Administration 33 17 To be determined

Public Administration Training 1,020 1,020 Completed 3/94

Public Policy Advisers 390 350 Completed 3/94

Regional Scholar Program 11,187 8,826 To be determined

Russian Junior Faculty Program 2,474 1,547 6/96

Samantha Smith Academic Exchanges 2,521 2,364 To be determined

Samantha Smith Youth Exchanges 2,575 2,397 To be determined

Social Science and Civics Education programs 691 417 To be determined

Teacher Exchange Program 2,365 1,568 To be determined

Technical Assistance for Public Policy 75 77 Completed 3/94

Undergrad Student Exchange Program 8,979 6,362 8/96

University Linkages and NIS University Partnership 10,337 7,813 To be determined

Total $219,326 $162,427

USIA implemented the following 30 programs:

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1,000/1,000 Program The President’s University Student Exchange (1,000/1,000 student

exchange) provides grants to U.S. educational, cultural, and other

nonprofit institutions to support undergraduate exchanges between the

United States and the FSU to promote mutual understanding.

Academic Specialists With the use of 2- to 6-week single-country grants, American experts

consult with academics and professionals at foreign educational or other

key institutions about specific issues, such as curriculum or institutional

development, or conduct academic or professional seminars/workshops

for foreign audiences.

America House Program This program plans for the opening and initial operation of an America

House in Kiev, Ukraine; Alma Ata, Kazakhstan; and Vladivostok, Russia.

America House facilities will function as a base for visiting American

technical advisers, teachers, government experts, and volunteers carrying

out both U.S. government and private sector assistance programs.

Book Translations

Program

With funding from USAID, USIA helped translate books in six FSU countries.

Business Exchanges The Business for Russia Program arranges 1 month U.S.-based internships

to provide Russian entrepreneurs with practical knowledge of a market

economy and to promote a supportive business environment for the

participants upon their return to Russia. Russians are hosted by groups in

local American communities and stay with host families.

Diplomatic Training

Program

This program provided training for 30 officials representing the foreign

ministers of Armenia, Georgia, Kazakhstan, Kyrgyzstan, Moldova,

Tajikistan, Turkmenistan, Ukraine, and Uzbekistan in the establishment of

a diplomatic service. Two 2-week workshops were held in Salzburg,

Austria.

Fulbright Scholars and

Students

The Fulbright program exchanges U.S. and foreign faculty lecturers,

researchers, and graduate students for one semester to one academic year.

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Graduate and

Undergraduate Top-up

Program

Under this program, USIA awards grants to undergraduate and graduate

students from the FSU who are admitted to U.S. universities but need

partial financial assistance. Maximum grants of $10,000 per student are

awarded to defray transportation and living expenses. The U.S. institution

is expected to provide full tuition for the recipient.

Graduate Student

Exchange Program

Under this program, fellowships for graduate-level study in the United

States are granted in the fields of public administration, economics,

business, educational administration, public policy, and law for students

and professionals from the FSU.

Humphrey Fellowship

Program

The Hubert H. Humphrey Fellowship Program awards grants to mid-career

professionals for a 1-year program of nondegree study and practical

experience. Fellows are selected based on their potential for national

leadership.

International Visitor

Program

Foreign leaders and potential leaders in a broad variety of professional

fields meet with their counterparts in the United States for approximately

30 days and experience U.S. culture and society. The European Branch

programs include individual visitors, single-country projects, subregional

projects in the FSU and Baltic, European regional projects, and Freedom

Support and technical assistance grants.

Local and Regional

Government Programs

The program provides opportunities for FSU participants to examine the

relationship among federal, regional, and local levels of government.

Individual projects include internship programs, study tours, and

short-term nontechnical training workshops.

Muskie Fellowship

Program

The Edmund S. Muskie Fellowship Program provides scholarships to

young and mid-career citizens from the FSU for graduate study in the

United States in the fields of business administration, economics, law, and

public administration. The fellowship also provides 3- to 6-month

internships for participants to make professional contacts for businesses,

law firms, international organizations, university research centers, and

other private sector institutions. The objective of the program is to

promote democratic and economic reform.

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NIS Media Assistance With funds from the Freedom Support Act, USIA conducts a variety of

media programs in Russia and Kyrgyzstan, including media workshops and

seminars on journalistic techniques, the role of the free press in a

democratic society, the business of media, and information gathering in

specific fields; media equipment donations; establishment of a media

resource clearing house at the Russian American Press Center in Moscow;

and news media internships and in-country training sessions for

journalists.

NIS Program

Administrative Costs

The figures in table II.6 for this program are administrative and travel

costs billed to USAID through an interagency agreement as part of USIA’s

implementation of programs funded through transfer from USAID.

NIS Training The NIS Training Program focuses on local government and public

administration, business, and media. Programs can include “train the

trainers” models; support to indigenous training centers; and seminars,

workshops, and observation study tours in the United States and the FSU.

NIS Youth Secondary

Exchange

Grants are awarded to U.S. institutions to bring FSU high school students to

the United States and send Americans to the FSU on short-term and

long-term exchanges. The program supports four areas: (1) the Academic

Year Program, (2) the Semester Inbound/Academic Year Outbound, (3) the

Short-Term Thematic Program, and (4) the School Linkage Program.

Parliamentary Exchange

Program

This program introduces parliamentarians from the FSU to the U.S.

legislative system by providing an opportunity to observe the day-to-day

work of U.S. Members of Congress in Washington and their home districts.

Program Evaluation and

Administration

Freedom Support Act funds are provided for salaries of temporary

personnel hired to administer programs, travel to program sites,

development and administration of evaluation instruments for program

participants, and monitoring efforts by program staff.

Public Administration

Training Program

Under this program, national and local leaders are trained in the principles

and practices of democratic governance. The emphasis is on managing

governmental structures at the local, regional, and national levels. Citizen

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participation, sister cities’ relationships, long-term links, and training

programs are featured.

Public Policy Advisers Public policy advisers work with FSU host governments to help set up

democratic forms of governance. They help resolve issues related to

personnel management; budget; local and regional government; education;

constitutional structure; economic development; public awareness

programs; and relations among the executive branch, national legislatures,

and local government.

Regional Scholar Program The Regional Scholar Exchange Program provides grants to doctoral and

post-doctoral scholars in the FSU for research in the United States and for

Americans to conduct research in the FSU in the humanities and the social

sciences. The objectives are to promote international advanced scholarly

cooperation and allow an exchange of access to research sources.

Russian Junior Faculty

Program

This program is designed to complement the Fulbright Scholarship

Program by offering 1 year fellowships to Russian professors to conduct

research, attend classes, and work with a mentor to develop revised

curricula in the fields of business administration, public administration,

law, economics, library science, library administration, and university

administration.

Samantha Smith Academic

Exchanges

The Samantha Smith Memorial Exchange Program provides grants to U.S.

educational, cultural, and other nonprofit institutions to support

undergraduate exchanges between the United States and the FSU, the

Baltic countries, and Eastern Europe. The purpose of the program is to

promote mutual understanding through educational and cultural

exchange.

Samantha Smith Youth

Exchanges

This program provides for exchanges of high school students in the FSU

and the United States. One objective of the program is to promote

democratic reform by exposing youth directly to American political,

economic, and social systems.

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Social Science and Civics

Education Programs

USIA programs for reforming social sciences curricula provide semester or

academic year fellowships at major U.S. research or teaching institutions

for Russian junior faculty teachers of the social sciences or law.

Teacher Exchange

Program

This program supports one- and two-way exchange programs for

educators at the secondary and post-secondary levels with a focus on

English, social sciences, and curriculum reform. The program includes a

project for teaching assistants that brings young Russian teachers and

recent graduates of pedagogical institutes in the fields of social sciences

and English to 2- and 4-year colleges and universities in the United States.

Technical Assistance for

Public Policy

The USIA Information Office at the American Embassy in Moscow and the

USIA Television Service, Foreign Broadcast Support Office provided

opportunities for Russian television documentary and news

producers/journalists to make TV documentaries on topics within the

context of rule of law for broadcast on prime time national television in

Russia and the FSU.

Undergraduate Student

Exchange Program

Fellowships for undergraduate study in the United States are granted in

the fields of agriculture, computer science, business, economics, public

policy/government, and education. Undergraduate candidates are

recruited in the FSU through a cooperative effort administered by the

American Council of Teachers of Russian and the American Collegiate

Consortium.

University Linkages and

the NIS University

Partnership Program

The University Affiliations Program’s objective is to support institutional

linkages between U.S. and foreign colleges and universities with a

demonstrated commitment to internationalizing their academic programs

in a variety of fields, including social sciences, humanities, arts, law, and

business. This program targets partnerships that support development of

curricula and teaching methodologies and that seek to modernize

administrative structures at higher education institutions in the FSU.

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Department of State

Figure II.16: Obligations and Expenditures for State-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in thousands)

0

10,000

20,000

30,000

40,000

50,000

60,000

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$3,034 $6,630 $7,848 $10,018 $48,105 $8,116

$0 $1,529 $6,178 $7,940 $46,984 $8,217

Total Obligations: $83,751

Total Expenditures: $70,848

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Figure II.17: Appropriation Sources for State-Implemented Noncredit Obligations (Fiscal Year 1990 Through December 31,

1994)

USAID-Economic Support Funds (0.92%)

State Appropriations (16.38%) USAID-Freedom Support Act (16.21%)

Support for (9.03%)

DOD Appropriations (57.47%)

East European

Democracy Act

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Figure II.18: OMB Budget Function Classifications for State-Implemented Noncredit Obligations (Fiscal Year 1990 Through

December 31, 1994) 

International Affairs (42.53%)

050 Defense (57.47%)

150

Table II.8: State Department Noncredit Program Obligations and Expenditures by Program (Fiscal Year 1990 Through

December 31, 1994) 

Dollars in thousands

Program Obligations Expenditures

Program end

date

Communications Link $345 $323 6/30/96

Foreign Diplomat Training

365 336

Completed

6/27/94

Humanitarian Assistance 49,935 47,302 1/1/00

Miscellaneous State Department Assistance Efforts 90 45 Completed

NIS Rule of Law 429 301 To be determined

NIS Telecom Technical Assistance Program 455 455 9/98

Program for the Study of Eastern Europe and the NIS (Title VIII) 29,182 20,080 8/31/96

Russian Fissile Material Storage Facility Design 244 244 Completed

Science and Technology Centers 767 765 12/03

Science and Technology Cooperation 1,677 945 9/30/95

Travel Costs and Translation Services 262 52 Completed

Total $83,751 $70,848

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The State Department implemented or supported the following 11

programs:

Communications Link With partial funding from DOD, the program established the U.S. terminals

for communications links with Belarus, Ukraine, and Kazakhstan.

Foreign Diplomat Training With funding from USAID, State trained many of the new and inexperienced

diplomats from former Soviet states who had been brought on board to

staff newly created or significantly revamped foreign ministries.

Humanitarian Assistance State transports private sector and U.S. government excess materials

(food, medicines, hospitals, and medical and farm equipment and

supplies) to the FSU. Distribution is made directly to the needy by

nongovernmental organizations and local administrations. These figures

only include transportation costs incurred during fiscal year 1994 and the

first quarter of fiscal year 1995.

Miscellaneous State

Department Assistance

Efforts

This program represents small funding transfers from USAID to State to

support the overall U.S. assistance effort.

NIS Rule of Law With funding from USAID, this program promotes changes in the roles and

attitudes of players in the FSU legal system, thereby elevating the functions

and stature of judges and subordinating prosecutors’ roles to legal

constraints and judicial power.

NIS Telecom Technical

Assistance Program

With funding from USAID, the program strives to enhance private sector

development of telecommunications in the FSU by (1) funding multilateral

and bilateral telecommunication technical assistance programs and

(2) developing policy seminars and workshops on telecommunication

regulatory issues, policy matters, technical coordination, charging/tariff

policies, and competition/privatization of telecommunication.

Program for the Study of

Eastern Europe and the

NIS (Title VIII)

The intent of the program is to redress the diminishing supply of experts

on this region by providing stable, long-term financing on a national level

for advanced research, graduate and language training; public

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dissemination of research data, methods, and findings; and contact and

collaboration among government and private specialists. State awards

grants to national organizations, which then make awards to individual

scholars or other institutions.

Russian Fissile Material

Storage Facility-Design

This program represents DOD funding transfers to the State Department to

support the DOD CTR program in fissile material storage facility design.

Science and Technology

Centers

With funding from DOD, State provided support for the DOD-managed

science and technology center in Russia. The center is designed to be a

clearinghouse for developing, selecting, funding, and monitoring projects

that will be carried out primarily at institutions and facilities in the FSU.

The program will be transferred to the State Department in fiscal year

1996.

Science and Technology

Cooperation

State’s Bureau of Oceans and International Environmental and Scientific

Affairs provides funding to (1) develop multilateral cooperation and

negotiate international agreements; (2) expand international science,

technology, and health cooperation; (3) negotiate agreements and support

programs to advance U.S. fishing and marine conservation goals; and

(4) integrate sustainable development into economic and social activities.

Travel Costs and

Translation Services

This program represents funding transfers from DOD to the State

Department for travel costs and translation services that supported the CTR

program.

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Peace Corps

Figure II.19: Obligations and Expenditures for Peace Corps-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in thousands)

0

5,000

10,000

15,000

20,000

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$0 $0 $3,505 $11,608 $15,378 $3,322

$0 $0 $2,874 $10,074 $14,537 $5,423

Total Obligations: $33,813

Total Expenditures: $32,908

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Figure II.20: Appropriation Sources for Peace Corps-Implemented Noncredit Obligations (Fiscal Year 1990 Through

December 31, 1994)

USAID-Economic Support Funds (2.53%)

USAID-Freedom Support Act (37.30%)

 (60.17%)

Peace Corps

Appropriation

All of the obligations for Peace Corps-implemented noncredit programs

came from the 150 International Affairs budget function classification.

Table II.9: Peace Corps Noncredit Program Obligations and Expenditures by Program (Fiscal Year 1990 Through

December 31, 1994) 

Dollars in thousands

Program Obligations Expenditures

Program end

date

Education $19,469 $18,842 To be determined

Small Business Development 14,344 14,066 To be determined

Total $33,813 $32,908

The Peace Corps implemented the following two programs:

Education Peace Corps volunteers teach English in secondary schools throughout the

FSU and work closely with Ministries of Education to develop teaching

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methods and curricula for students and educators. Volunteers also provide

more advanced levels of English programs for business entrepreneurs and

government officials as they seek to expand their contact with the

international community.

Small Business

Development

To support the transition to free market economies, volunteers are

working in business centers throughout the FSU, providing information and

advice to individual entrepreneurs and newly privatized businesses.

Specific activities include helping banking industries structure commercial

credit services, teaching business and entrepreneurial development, and

working as municipal advisers to local governments.

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TDA

Figure II.21: Obligations and Expenditures for TDA-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in Thousands)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$0 $0 $4,497 $10,546 $11,996 $4,235

$0 $0 $647 $6,080 $3,145 $1,575

Total Obligations: $31,274

Total Expenditures: $11,447

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Figure II.22: Appropriation Sources for TDA-Implemented Noncredit Obligations (Fiscal Year 1990 Through December 31,

1994)

USAID-Economic Support Funds (25.68%) Appropriations (22.42%)

USAID-Freedom Support Act (51.90%)

TDA

All of the obligations for TDA-implemented noncredit programs came from

the 150 International Affairs budget function classification.

Table II.10: TDA Noncredit Program Obligations and Expenditures by Program (Fiscal Year 1990 Through December 31,

1994)

Dollars in thousands

Program Obligations Expenditures

Program end

date

Trade and Development Opportunities $31,274 $11,447 To be determined

Total $31,274 $11,447

TDA implemented the following program:

Trade and Development

Opportunities in the NIS

With partial funding from USAID, TDA has helped U.S. companies pursue

overseas business opportunities in developing and middle-income

countries since early 1992. By funding feasibility studies, orientation visits,

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specialized training grants, and various forms of technical assistance, TDA

enables American businesses to become involved in the planning stages of

major infrastructure and industrial projects. Projects have involved oil and

gas, telecommunications, aviation, electric power, mixed residential and

commercial development, minerals development, and manufacturing.

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HHS

Figure II.23: Obligations and Expenditures for HHS-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in Thousands)

0

2,000

4,000

6,000

8,000

10,000

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$981 $1,598 $3,536 $7,007 $8,734 $1,656

$981 $1,598 $3,221 $6,705 $8,607 $1,517

Total Obligations: $23,512

Total Expenditures: $22,629

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Figure II.24: Appropriation Sources for HHS-Implemented Noncredit Obligations (Fiscal Year 1990 Through December 31,

1994)

USAID-Economic Support Funds (4.30%)

USAID-Freedom Support Act (2.87%)

Disaster Assistance (4.74%)

DOE Appropriations (2.00%)

State Appropriations (2.03%)

HHS Appropriations (84.05%)

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Figure II.25: OMB Budget Function Classifications for HHS-Implemented Noncredit Obligations (Fiscal Year 1990 Through

December 31, 1994) 

150 International Affairs (13.94%)

270 Energy (2.00%)

550 Health (84.05%)

Table II.11: HHS Noncredit Program Obligations and Expenditures by Program (Fiscal Year 1990 Through December 31,

1994)

Dollars in thousands

Program Obligations Expenditures

Program end

date

Centers for Disease Control Programs in Technical Assistance and

Exchanges $1,126 $1,126

To be determined

Emergency Public Health Information Surveillance System 1,394 1,117 8/96

Food and Drug Administration Activities with the USSR 116 116 Completed 9/94

Food and Drug Administration Vaccine and Related Assistance 1,333 1,255 9/96

Miscellaneous Cooperative Science and Technology Activities 1,451 1,326 To be determined

National Cancer Institute Projects 2,646 2,646 To be determined

National Institutes for Health Biomedical and Behavioral Research 14,355 1 4,005 To be determined

Scientific Exchanges of Cardiopulmonary Scientists 1,091 1,038 To be determined

Total $23,512 $22,629

HHS implemented the following eight programs:

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CDC Programs in

Technical Assistance and

Professional

Exchanges/Training

These programs provide technical assistance in polio eradication and

diphtheria control and support for professional exchanges and training of

health professionals. The majority of the activities are collaborative and

result from shared professional and scientific interests; they are not part of

any explicit CDC program conducted exclusively in the FSU.

Emergency Public Health

Information Surveillance

System

With funding from USAID, CDC pursues a number of programs in nine FSU

countries. In the Caucasus, CDC works to refine, strengthen, and

incorporate an emergency public health information surveillance system

into the Armenian and Georgian Ministries of Health. In Central Asia, CDC

assists the republics in using public health data in policy formation and the

production of monthly public health bulletins. CDC also provides technical

assistance in a variety of areas to ensure progress and account for specific

public health emergencies. Training accounts for a significant portion of

all CDC project activities in the FSU.

Food and Drug

Administration Activities

With the USSR

This program represents the Food and Drug Administration (FDA)

activities under the aegis of the HHS-USSR Ministry of Health Bilateral

Health Agreement. The agency provided funding for in-country and per

diem expenses for Soviet courtesy visits, orientations, scientific

exchanges, and guest researchers.

FDA Vaccine and Related

Assistance

With funding from USAID, FDA assists FSU authorities address (1) the

quality and quantity of pharmaceutical biological products and medical

products and (2) food safety during the transition from a command to

market economy. Activities include helping to streamline the registration

of FDA regulated products and providing technical assistance, training,

and information.

Miscellaneous Cooperative

Science and Technology

Activities

This program represents a variety of conferences, studies, workshops, and

exchanges involving U.S. and FSU researchers in a number of health-related

fields, including Primatology, alcohol abuse, and HIV-AIDS.

National Cancer Institute

Projects

In the FSU, the National Cancer Institute is (1) designing studies of

leukemia and thyroid cancer following the Chernobyl accident,

(2) determining whether new procedures can be used to measure the

effects of radiation on humans, (3) supporting outstanding young FSU

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Agency Specific Information

cancer researchers, (4) training physicists formerly engaged in military

applications, and (5) engaging in a short-term scientist exchange program.

National Institutes for

Health Biomedical and

Behavioral Research

The National Institutes for Health is working with the FSU to strengthen

biomedical research in FSU countries and apply that research to improve

the health of humans and reduce the burdens of disease and disability.

Scientific Exchanges of

Cardiopulmonary

Scientists

This program, underway since 1972, supports exchanges of scientists from

the United States and the FSU to advance their knowledge and

understanding of cardiopulmonary diseases and their treatment through

biomedical research of mutual interest and benefit. Cooperating foreign

scientists participate on a cost-sharing basis and with the support of their

research institute. Research projects build on the scientific priorities

mandated by Congress for the National Heart, Lung, and Blood Institute.

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Department of

Commerce

Figure II.26: Obligations and Expenditures for Commerce-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in thousands)

0

2,000

4,000

6,000

8,000

10,000

12,000

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$0 $0 $2,911 $5,366 $10,224 $4,295

$0 $0 $374 $1,788 $3,565 $3,293

Total Obligations: $22,796

Total Expenditures: $9,020

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Figure II.27: Appropriation Sources for Commerce-Implemented Noncredit Obligations (Fiscal Year 1990 Through

December 31, 1994)

 (31.54%)

DOD Appropriation (1.84%)

Commerce Appropriation (6.58%)

Freedom Support Act (60.04%)

USAID-Economic

Support Funds

USAIDPage 91 GAO/NSIAD-96-37 Former Soviet Union
Appendix II 

Agency Specific Information

Figure II.28: OMB Budget Function Classifications for Commerce-Implemented Noncredit Obligations (Fiscal Year 1990

Through December 31, 1994) 

370 Commerce (6.58%) 050 Defense (1.84%)

150 International Affairs (91.58%)

Table II.12: Commerce Noncredit Program Obligations and Expenditures by Program (Fiscal Year 1990 Through

December 31, 1994) 

Dollars in thousand

Program Obligations Expenditures

Program end

date

American Business Centers $8,545 $3,039 9/97

Assistance to Russia and Ukraine on GATT/WTO Accession 123 49 12/95

BISNIS (Business Information Service for the NIS) 1,932 1,879 To be determined

CABNIS (Consortium of American Businesses in NIS) 5,925 1,921 To be determined

Export Control Development Cooperation 420 338 To be determined

SABIT (Special American Business Internship Program) 5,122 1,424 To be determined

UHIPP (U.S. Health Industry Partnership Program) 729 370 6/96

Total $22,796 $9,020

The Department of Commerce implemented the following seven programs:

American Business Center

Program

With funding from USAID, this program, mandated by section 301 of the

Freedom Support Act, promotes the rapid expansion of U.S. trade and

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Agency Specific Information

investment in the FSU, with emphasis on small- and medium-sized U.S.

firms. The Centers provide American companies with a broad range of

business development and facilitation services.

Assistance to Russia and

Ukraine on General

Agreement on Trade and

Tariffs/World Trade

Organization Accession

With funding from USAID, this program helps Russia and Ukraine accede to

the World Trade Organization. The General Agreement on Trade and

Tariffs—Uruguay round agreements contain a number of obligations in

many trade-related fields that Russia and Ukraine must assume in order to

join the World Trade Organization. Commerce has a resident adviser in

each country to help the governments respond to the international trade

community and develop ways to implement obligatory requirements.

Business Information

Service for the NIS

With funding primarily from USAID, this program provides information,

counseling, contacts, and trade leads to U.S. companies interested in doing

business in the FSU through an information hotline, publications, the

Internet, and other services. The program also assists FSU companies find

U.S. partners.

Consortium of American

Businesses in the NIS

With funding from USAID, this program is designed to help U.S. firms

establish a commercial presence in markets and enhance privatization in

the FSU. Nonprofit grantees form consortia of for-profit U.S. firms

interested in trading with the FSU and the program provides funds to these

grantees to help cover the costs of establishing offices in the FSU.

Export Control

Development Cooperation

With funding from DOD, this program (1) assists in developing effective,

multipurpose export control systems in the FSU and (2) helps obtain the

countries’ adherence to multilateral regimes that seek to control the

transfer of weapons of mass destruction, related technologies, and other

sensitive goods and technologies. The program is divided into four areas

of activity: project development, export control community technical

interaction, training and technical assistance, and equipment and facilities.

Special American Business

Internship Training

Program

With funding from USAID, this program supports the FSU transition to a

market economy while fostering long-term commercial ties between them

and the United States. Under this program, Commerce provides grants to

American companies to help defray the costs of hosting FSU managers and

scientists for 3 to 6 months of hands-on training.

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U.S. Health Industry

Partnership Program

With funding from USAID, this program assists American medical device,

health-care service, and pharmaceutical companies pursuing business

opportunities in the FSU by collecting and disseminating market data,

organizing business development and reverse trade missions, and sharing

the high costs of exploring these emerging markets.

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Department of the

Treasury

Figure II.29: Obligations and Expenditures for Treasury-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in thousands)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$0 $0 $1,124 $2,564 $6,609 $798

$0 $0 $71 $1,966 $3,314 $655

Total Obligations: $11,095

Total Expenditures: $6,006

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Figure II.30: Appropriation Sources for Treasury-Implemented Noncredit Obligations (Fiscal Year 1990 Through

December 31, 1994)

 (27.04%)

State Appropriation (1.13%)

IRS Appropriation (0.13%)

DOD Appropriations (1.35%)

USAID-Freedom Support Act (70.36%)

USAID-Economic

Support Funds

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Figure II.31: OMB Budget Function Classifications for Treasury-Implemented Noncredit Obligations (Fiscal Year 1990

Through December 31, 1994) 

800 General Government (0.13%) 050 Defense (1.35%)

150 International Affairs (98.53%)

Table II.13: Treasury Noncredit Program Obligations and Expenditures by Program (Fiscal Year 1990 Through

December 31, 1994) 

Dollars in thousands

Program Obligations Expenditures

Program end

date

Export Controls—Belarus $127 $122 12/95

Export Controls—Ukraine 22 17 9/95

Financial Adviser Program 6,215 4,813 To be determined

Financial Management Training 2,000 140 5/97

G-7 Support Implementation Group (SIG) 2,592 792 12/31/95

Internal Revenue Service Eastern Europe/NIS Program 14 14 To be determined

International Narcotics and Law Enforcement Matters 125 108 9/30/95

Total $11,095 $6,006

Treasury implemented the following seven programs:

Export Controls: Belarus

and Ukraine

With funding from DOD, this U.S. Customs Service program assists the

recipient countries in efforts to control their borders. Under this program,

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Belarus Customs officials receive training in the United States on how to

use various U.S. Customs enforcement equipment. Customs officials have

worked with the Customs Service of Kazakhstan and are developing

training and assistance programs geared specifically to Ukraine’s Customs

needs.

Financial Adviser Program With funding from USAID, this program focuses on topics that are the

province of finance ministries in most countries. The program places

resident advisers in government institutions, supplemented by more

specialized experts who visit on short-term missions, to deal with specific

problems related to policy reforms that are key to economic transition.

Financial Management

Training

With funding from USAID, the Financial Management Service of Treasury is

developing computer-assisted training materials for the State Tax Service

of the Russian Federation to improve the administration of Russian fiscal

policy. This program is being carried out through a cooperative agreement

with the Soros Business and Management Foundation, which is providing

matching grant financing.

G-7 Support

Implementation Group

The Support Implementation Group was established as a result of

Presidents Clinton and Yeltsin Vancouver summit in April 1993 to address

obstacles to the effective provision of assistance on the side of Russian

government or of the G-7 donors. Group members agreed that the Group

should not be a policy body, but rather should discuss operational issues

that affect the delivery of assistance. USAID provided the funds for this

program.

Internal Revenue

Service-Eastern

Europe/NIS Program

The Internal Revenue Service provides instructors on long- and short-term

temporary duty assignments to support the Moscow training center.

International Narcotics

and Law Enforcement

Matters

With funding from the State Department, the U.S. Customs Service

provides a wide array of anticrime officer development courses on law

enforcement team operations, management skills, and

infrastructure-building for the law enforcement agencies of the recipient

countries. The purpose is to provide selected law enforcement officers and

others with appropriate skills and knowledge for antismuggling

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operations, basic contraband team operations, and drug identification and

field testing.

Department of the

Interior

Figure II.32: Obligations and Expenditures for Interior-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in thousands)

0

2,000

4,000

6,000

8,000

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$0 $0 $0 $1,229 $7,168 $0

$0 $0 $0 $173 $1,679 $266

Total Obligations: $8,397

Total Expenditures: $2,118

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Figure II.33: Appropriation Sources for Interior-Implemented Noncredit Obligations (Fiscal Year 1990 Through December 31,

1994)

State Appropriations (1.01%)

USAID-Freedom Support Act (98.99%)

All of the obligations for Department of the Interior-implemented

noncredit programs came from the 150 International Affairs budget

function classification.

Table II.14: Interior Noncredit Program Obligations and Expenditures by Program (Fiscal Year 1990 Through December 31,

1994) 

Dollars in thousands

Program Obligations Expenditures

Program end

date

Improved Public Sector Environmental Sciences Program $7,404 $1,660 9/97

Mineral Management Service Activities in Russia 993 458 9/30/96

Total $8,397 $2,118

The Department of the Interior implemented the following two programs:

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Improved Public Sector

Environmental Sciences

Program

With funding from USAID, the U.S. Geological Survey is conducting oil and

gas resource assessment programs in Russia and Ukraine. The goals of

these efforts are to (1) improve technical communication between

petroleum geologists from the United States and the FSU, (2) make

petroleum geology data on FSU countries available to the U.S. private

sector, and (3) facilitate investment by the U.S. petroleum industry. The

Survey is also conducting a coal resource assessment and exploration

program in Armenia and a coal resource assessment program in

Kyrgyzstan.

Minerals Management

Service Activities in Russia

With funding from the State Department, the Minerals Management

Service undertook a risk analysis of resources development activities in

the Russian Far East. With funding from USAID through the U.S. Geological

Survey, the Service provides training in the United States and Russia for

Russia’s oil and gas regulators and environmental agencies. The training is

designed to help establish a regulatory program to work with the private

sector in developing Russian oil and gas resources in an environmentally

sound manner.

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NRC

Figure II.34: Obligations and Expenditures for NRC-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in Thousands)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$0 $0 $0 $1,899 $3,315 $1,736

$0 $0 $0 $716 $2,500 $926

Total Obligations: $6,950

Total Expenditures: $4,142

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Figure II.35: Appropriation Sources for NRC-Implemented Noncredit Obligations (Fiscal Year 1990 Through December 31,

1994)

 (35.06%)

DOD Appropriations (2.59%)

NRC Appropriations (36.13%)

USAID-Freedom Support Act (26.22%)

USAID-Economic

Support Funds

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Figure II.36: OMB Budget Function Classifications for NRC-Implemented Noncredit Obligations (Fiscal Year 1990 Through

December 31, 1994) 

050 Defense (2.59%)

270 Energy (36.13%)

150 International Affairs (61.28%)

Table II.15: NRC Noncredit Program Obligations and Expenditures by Program (Fiscal Year 1990 Through December 31,

1994)

Dollars in thousands

Program Obligations Expenditures

Program end

date

Joint Coordinating Committee for Civilian Nuclear Reactor Safety $503 $365 To be determined

Material Control, Accountability, and Protection—Kazakhstan 6 6 12/98

Material Control, Accountability, and Protection—Russia 80 20 9/98

Material Control, Accountability, and Protection—Ukraine 94 18 12/98

NRC-Sponsored Research at Russian Research Center 2,008 935 To be determined

Nuclear Regulatory Assistance 4,259 2,798 12/96

Total $6,950 $4,142

NRC implemented the following six programs:

Joint Coordinating

Committee for Civilian

Nuclear Reactor Safety

Activities under the Committee include the exchange of scientists and

technical information and contract support in the following areas of safety

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Agency Specific Information

research: vessel integrity, aging, severe accidents, and epidemiological

studies and assistance.

Material Controls,

Accountability, and

Protection

With funding from DOD, NRC provides equipment, property, supplies,

training, and services to enhance nuclear material control and accounting

and physical protection in Kazakhstan, Ukraine, and Russia. At the

national level, efforts address the development or enhancement of

(1) regulatory functions, (2) a national information system, and

(3) technical support infrastructure. At selected facilities, pilot safeguards

programs are being established.

NRC-Sponsored Research

at the Russian Research

Center

NRC is sponsoring research at the Russian Research Center (Kurachatov

Institute) and Russian Academy of Sciences aimed at preventing severe

accidents at nuclear power plants.

Nuclear Regulatory

Assistance

With funding from USAID, NRC is implementing a series of activities

designed to assist Russian and Ukrainian regulators in training and in

developing safety standards and procedures. The intent is to increase the

regulatory authorities’ ability and stature within their respective countries

to effectively provide and ensure the safety of operational nuclear

reactors.

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NSF

Figure II.37: Obligations and Expenditures for NSF-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in Thousands)

0

500

1,000

1,500

2,000

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$109 $435 $1,800 $1,270 $1,723 $1,040

$109 $435 $1,800 $1,270 $1,700 $1,040

Total Obligations: $6,377

Total Expenditures: $6,377

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Figure II.38: Appropriation Sources for NSF-Implemented Noncredit Obligations (Fiscal Year 1990 Through December 31,

1994)

State Appropriations (1.93%)

NSF Appropriations (98.07%)

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Figure II.39: OMB Budget Function Classifications for NSF-Implemented Noncredit Obligations (Fiscal Year 1990 Through

December 31, 1994) 

150 International Affairs (1.93%)

250 General Science (98.07%)

Table II.16: NSF Noncredit Program

Obligations and Expenditures by

Program (Fiscal Year 1990 Through

December 31, 1994)

Dollars in thousands

Program Obligations Expenditures

Program end

date

Cooperative Research

Programs $6,377 $6,377

To be determined

Total $6,377 $6,377

The NSF implemented the following program:

Cooperative Research

Programs With NIS

The National Science Foundation awards grants to U.S. researchers for

collaborative research activities with the FSU in basic science and

engineering. The objectives are to advance basic science and engineering

by enabling leading experts from the United States and FSU to combine

complementary talents and pool research resources in areas of strong

mutual competence and interest.

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EPA

Figure II.40: Obligations and Expenditures for EPA-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in Thousands)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1995

$340 $139 $806 $2,278 $2,151 $431

$340 $139 $806 $603 $3,363 $431

Total Obligations: $6,145

Total Expenditures: $5,682

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Figure II.41: Appropriation Sources for EPA-Implemented Noncredit Obligations (Fiscal Year 1990 Through December 31,

1994)

EPA Appropriations (24.30%)

USAID-Freedom Support Act (75.70%)

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Figure II.42: OMB Budget Function Classifications for EPA-Implemented Noncredit Obligations (Fiscal Year 1990 Through

December 31, 1994) 

300 Natural Resources (24.30%)

150 International Affairs (75.70%)

Table II.17: EPA Noncredit Program Obligations and Expenditures by Program (Fiscal Year 1990 Through December 31,

1994)

Dollars in thousands

Program Obligations Expenditures

Program end

date

Air Pollution Control Technology $560 $550 9/97

Arctic Contaminants Research Program 10 10 Completed 9/94

Drinking Water Quality in the Moscow Region 756 756 9/97

Environmental Management Training 522 522 9/97

Integrated Resource Planning 285 285 6/96

Kaniv Reservoir Water Quality Project 10 10 9/97

Nizhnii Tagil Environment Project 1,040 592 9/97

Recovering of Fugitive Methane Emissions 294 294 6/96

Russia Air Management Program 1,185 1,180 9/97

Scientific and Technological Cooperative Program 1,483 1,483 Completed

Total $6,145 $5,682

EPA implemented the following 10 programs:

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Air Pollution Control

Technology

With funding from USAID, this program will demonstrate new, innovative,

and low-cost air pollution control technology at a coal-fired heating plant

in Dorogobuzh, Russia.

Arctic Contaminants

Research Program

This program provided travel and living support for two Russian scientists

who worked collaboratively with Office of Research and Development

scientists. The group interpreted data from a scientific expedition

conducted in the summer of 1993. The goal of the entire Arctic

Contaminants Research Program, the bulk of which is conducted outside

the FSU, focuses on assessing the extent of contamination of arctic

ecosystems by atmospherically transported pollutants.

Drinking Water Quality in

the Moscow Region

With funding from USAID, this program concerns point-source pollution

from inadequate wastewater treatment, protection of small watersheds

from polluted agricultural runoff, and upgrades to laboratory and

monitoring capacity. The objective is to improve drinking water quality

and reduce health risks associated with water pollution and microbial

contamination of the Moscow drinking water supply.

Environmental

Management Training

With funding from USAID, this program provides training in environmental

management for mid-career professionals in various branches of the

Ukrainian government, business and industry, and the environmental

nongovernmental organization community.

Integrated Resource

Planning

With funding from USAID, this program introduces integrated resource

planning tools and concepts to promote energy efficiency and emissions

reductions at power plants Mosenergo in Moscow and Yuzhenergo in the

north Caucasus region.

Kaniv Reservoir Water

Quality Project

With funding from USAID, the program will help improve water quality

management of the Dnipro river system by introducing useful

management, modeling, and monitoring approaches to protect and

improve public health and aquatic resources.

Nizhnii Tagil Environment

Project

With funding from USAID, the program will (1) provide environmental

audits and pollution prevention at industrial enterprises, (2) strengthen the

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Agency Specific Information

management capacity in local environmental agencies, (3) develop

environmental education, (4) help establish community-based planning

and priority, and (5) create an environmental training and information

center in Ekaterinburg. The objective is to improve environmental

management and reduce pollution in Nizhnii Tagil and to disseminate

information on this experience to other cities in the Urals region and

elsewhere in Russia.

Recovery of Fugitive

Methane Emissions

With funding from USAID, this program will recover fugitive methane

emissions from gas pipelines and coal mines in Russia by (1) introducing

methane recovery technologies and practices by establishing a methane

recovery center and pre-feasibility studies at individual coal mines in the

Kuznetsk basin and (2) reducing leakage at compressor stations and welds

in the Gazprom gas pipeline system through field demonstrations of

methane recovery technologies and practices.

Russia Air Management

Program

With funding from USAID, the program will upgrade air quality management

tools and programs in Volgagrad to develop a control strategy and reduce

emissions at selected sites; it will also introduce changes, where

appropriate, into Russian national air policy. The objective is to improve

air quality management in Russia, initially at Volgagrad and subsequently

throughout the country.

Scientific and

Technological Cooperative

Program

This program represents various EPA activities conducted under the aegis

of the U.S.-U.S.S.R. Environmental Agreement. Examples include

demonstrating utility boiler emission control and exchanging technologies

and ideas for controlling degradation of marine port environments.

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OPIC

Noncredit Programs

Figure II.43: Obligations and Expenditures for OPIC-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in Thousands)

0

500

1,000

1,500

2,000

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$0 $0 $0 $1,055 $1,519 $240

$0 $0 $0 $362 $1,147 $372

Total Obligations: $2,814

Total Expenditures: $1,881

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All of the funding for OPIC-implemented noncredit obligations came from

USAID Economic Support Funds. All of the obligations for

OPIC-implemented noncredit programs came from the 150 International

Affairs budget function classification.

Table II.18: OPIC Noncredit Program

Obligations and Expenditures by

Program (Fiscal Year 1990 Through

December 31, 1994)

Dollars in thousands

Program Obligations Expenditures

Program end

date

Health Sector Initiative $612 $501 9/95

Private Sector Initiative 2,202 1,380 9/30/95

Total $2,814 $1,881

OPIC implemented the following two noncredit programs:

Health Sector Initiatives With funding from USAID, OPIC encourages U.S. investment in developing an

efficient productive capacity for vaccines, pharmaceuticals, and basic

medical supplies in targeted FSU countries. This effort includes investment

missions conducted by OPIC, sponsorship of seminars and/or conferences

for companies in the health sector on investment opportunities in the FSU,

and preinvestment services.

Private Sector Initiatives With funding from USAID, OPIC provides assistance to targeted FSU countries

to encourage private sector development and the conversion of

defense-related production in the FSU. This program includes investment

missions, roundtables for selected business people in specific sectors and

countries, and seminars and conferences for U.S. companies about

investment opportunities in the FSU.

Credit Programs

Table II.19: OPIC Credit/Insurance

Programs’ Face Value and Subsidy

Cost by Program (Fiscal Year 1990

Through December 31, 1994)

Dollars in thousands

Program Face value Subsidy cost

Program end

date

Insurance $983,860 $0 To be determined

Loan guarantees 838,300 36,928 To be determined

Total $1,822,160 $36,928

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OPIC implemented the following two credit/insurance programs:

Insurance Program OPIC insures U.S. investors against currency inconvertibility, expropriation,

and political violence in new ventures and the expansion of existing

enterprises overseas.

Loan Guarantee Program OPIC seeks to strengthen the U.S. economy by providing support to

American companies that want to expand into new markets overseas. The

program provides medium- to long-term financing for sound overseas

investment ventures involving significant equity or management

participation by U.S. businesses. Financing generally ranges from

$2 million to $200 million, with OPIC contributing up to 50 percent for new

ventures and up to 75 percent for expansion of existing successful

operations.

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DOT

Figure II.44: Obligations and Expenditures for DOT-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in Thousands)

0

200

400

600

800

1,000

1,200

1,400

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$0 $0 $0 $30 $1,205 $172

$0 $0 $0 $30 $1,013 $186

Total Obligations: $1,407

Total Expenditures: $1,229

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Figure II.45: Appropriation Sources for DOT-Implemented Noncredit Obligations (Fiscal Year 1990 Through December 31,

1994)

DOD Appropriation (2.13%)

State Appropriation (10.66%)

DOT Appropriation (87.21%)

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Figure II.46: OMB Budget Function Classifications for DOT-Implemented Noncredit Obligations (Fiscal Year 1990 Through

December 31, 1994) 

050 Defense (2.13%)

150 International Affairs (10.66%)

400 Transportation (87.21%)

Table II.20: DOT Noncredit Program Obligations and Expenditures by Program (Fiscal Year 1990 Through December 31,

1994)

Dollars in thousands

Program Obligations Expenditures

Program end

date

Federal Aviation Administration Assistance $849 $849 To be determined

Federal Highway Administration Russia Program 528 350 To be determined

Travel-Cooperative Threat Reduction 30 30 Completed

Total $1,407 $1,229

The Department of Transportation implemented the following three

programs:

Federal Aviation

Administration Assistance

to NIS

The Federal Aviation Administration activities in the FSU include

(1) opening new and expanding shorter international air routes through

the Russian Far East and Chinese airspace; (2) modernizing Russia’s air

traffic control system; (3) improving air safety and security in Russia;

(4) signing a reciprocal aircraft certification agreement permitting Federal

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Appendix II 

Agency Specific Information

Aviation Administration certification of “westernized” Russian aircraft;

(5) using signals from U.S. and Russian navigation satellite systems to

speed operational introduction of the global navigation system; and

(6) establishing the regulatory, policy, economic, and other steps

necessary to successfully convert Russia’s national aviation system to a

free market model with improved ties to U.S. counterparts.

Federal Highway

Administration Russia

Program

This program provides assistance implementing the $300-million World

Bank Highway Rehabilitation and Maintenance Program loan to Russia.

The Administration agreed to provide the Russian Federal Highway

Department with technical expertise related to institutional reform as well

as contract administration and materials quality control for Highway

Rehabilitation and Maintenance Program projects. The Russians have

requested the Administration’s continuing participation in this process and

expressed a strong desire to pattern their infrastructure program along the

federal-state design used in the United States.

Travel-CTR This program represents travel costs incurred in support of DOD’s CTR

program. Funding came from DOD.

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Appendix II 

Agency Specific Information

ACDA

Figure II.47: Obligations and Expenditures for ACDA-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in Thousands)

0

100

200

300

400

500

600

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$0 $0 $0 $515 $299 $0

$0 $0 $0 $175 $421 $2

Total Obligations: $814

Total Expenditures: $598

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Appendix II 

Agency Specific Information

Figure II.48: Appropriation Sources for ACDA-Implemented Noncredit Obligations (Fiscal Year 1990 Through December 31,

1994)

Appropriations (40.54%)

ACDA Appropriations (59.46%)

DOE

Page 122 GAO/NSIAD-96-37 Former Soviet Union
Appendix II 

Agency Specific Information

Figure II.49: OMB Budget Function Classifications for ACDA-Implemented Noncredit Obligations (Fiscal Year 1990 Through

December 31, 1994) 

050 Defense (40.54%)

150 International Affairs (59.46%)

Table II.21: ACDA Noncredit Program

Obligations and Expenditures by

Program (Fiscal Year 1990 Through

December 31, 1994)

Dollars in thousands

Program Obligations Expenditures

Program end

date

Communications Network $359 $223 12/96

Entrepreneurial Workshop 455 375 7/95

Total $814 $598

ACDA implemented the following two programs:

Communications Network The states participating in the Organization on Security and Cooperation

in Europe have established a communication network for members to

enable the exchange of information and timely notification of inspections

and evaluations. This program assists the countries of the FSU by procuring

the necessary station equipment and communication services for them.

Entrepreneurial Workshop In entrepreneurial workshops, U.S. business experts and industry

representatives help scientists from Russia’s main nuclear weapons

laboratories to find viable, nonmilitary applications in the commercial

Page 123 GAO/NSIAD-96-37 Former Soviet Union
Appendix II 

Agency Specific Information

sector for their skills and technologies and develop effective business

plans that can be presented to potential investors.

CRS

Figure II.50: Obligations and Expenditures for CRS-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in Thousands)

0

100

200

300

400

500

600

700

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$0 $0 $0 $0 $635 $86

$0 $0 $0 $0 $372 $3

Total Obligations: $721

Total Expenditures: $375

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Appendix II 

Agency Specific Information

All of the funding for CRS-implemented programs came from USAID

Freedom Support Act funds. All of the obligations for CRS-implemented

noncredit programs came from the 150 International Affairs budget

function classification.

Table II.22: CRS Noncredit Program Obligations and Expenditures by Program (Fiscal Year 1990 Through December 31,

1994)

Dollars in thousands

Program Obligations Expenditures

Program end

date

Assistance to Federal Assembly of Russia $175 $55 12/96

Assistance to the Supreme Rada of Ukraine 546 320 9/96

Total $721 $375

CRS implemented the following two programs:

Assistance to the Federal

Assembly of Russia

With funding from USAID, the program provides (1) basic office equipment,

an automated system, and the necessary training and support to the

Federal Assembly; (2) assistance for the development of parliamentary

libraries; and (3) technical assistance to improve the organization’s ability

to support the parliament and serve the members’ needs for information

and research.

Assistance to the Supreme

Rada of Ukraine

With funding from USAID, the program provides (1) basic office equipment,

an automated system, and the necessary training and support to the

Supreme Rada; (2) assistance for the development of parliamentary

libraries; and (3) technical assistance to improve the organization’s ability

to support the parliament and serve the members’ needs for information

and research.

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Appendix II 

Agency Specific Information

Department of Justice

Figure II.51: Obligations and Expenditures for Justice-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in thousands)

0

50

100

150

200

250

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$0 $0 $0 $24 $229 $161

$0 $0 $0 $24 $229 $161

Total Obligations: $414

Total Expenditures: $414

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Appendix II 

Agency Specific Information

Figure II.52: Appropriation Sources for Justice-Implemented Noncredit Obligations (Fiscal Year 1990 Through December 31,

1994)

Asset Forfeiture Funds (22.96%)

Justice Appropriations (5.74%)

State Appropriations (71.30%)

Page 127 GAO/NSIAD-96-37 Former Soviet Union
Appendix II 

Agency Specific Information

Figure II.53: OMB Budget Function Classifications for Justice-Implemented Noncredit Obligations (Fiscal Year 1990

Through December 31, 1994) 

750 Justice (28.70%)

150 International Affairs (71.30%)

Table II.23: Justice Noncredit Program Obligations and Expenditures by Program (Fiscal Year 1990 Through December 31,

1994) 

Dollars in thousands

Program Obligations Expenditures

Program end

date

Anti-Drug Training $231 $231 To be determined

Crime Assistance Training 159 159 To be determined

Needs Assessment for Rule of Law Projects 24 24 Completed

Total $414 $414

Justice implemented the following three programs:

Anti-Drug Training The Drug Enforcement Administration provides training to FSU

participants in basic drug law enforcement, international narcotic

enforcement, and asset forfeiture.

Crime Assistance Training The Federal Bureau of Investigation provides training and technical

assistance to FSU participants in the areas of white collar crime/financial

Page 128 GAO/NSIAD-96-37 Former Soviet Union
Appendix II 

Agency Specific Information

crimes, mid-level management, organized crime, law enforcement training,

and law enforcement executive development.

Needs Assessment for

Rule-Of-Law Projects

This program represents Justice costs incurred for a trip to Russia to

conduct a needs assessment for potential rule-of-law projects.

Page 129 GAO/NSIAD-96-37 Former Soviet Union
Appendix II 

Agency Specific Information

SEC

Figure II.54: Obligations and Expenditures for SEC-Implemented Noncredit Programs (Fiscal Year 1990 Through

December 31, 1994) (Dollars in Thousands)

0

10

20

30

40

Fiscal year

Obligations

Expenditures

1990 1991 1992 1993 1994 1stQ 95

$0 $0 $0 $0 $0 $34

$0 $0 $0 $0 $0 $33

Total Obligations: $34

Total Expenditures: $33

All funding for SEC-implemented noncredit programs in the FSU came from

USAID Freedom Support Act funds. All of the obligations for

Page 130 GAO/NSIAD-96-37 Former Soviet Union
Appendix II 

Agency Specific Information

SEC-implemented noncredit programs came from the 150 International

Affairs budget function classification.

Table II.24: SEC Noncredit Program Obligations and Expenditures by Program (Fiscal Year 1990 Through December 31,

1994)

(Dollars in thousands)

Program Obligations Expenditures Program end date

Technical Assistance Program $34 $33 9/30/96

Total $34 $33

SEC implemented the following program:

Technical Assistance

Program

With funding from USAID, the program attempts to facilitate the

development of a securities market regulatory function within the FSU.

Eximbank

Table II.25: Eximbank Credit/Insurance Programs’ Face Value and Subsidy Cost by Program (Fiscal Year 1990 Through

December 31, 1994) 

(Dollars in thousands)

Program Face value Subsidy cost Program end date

Direct loans $88,764 $17,295 To be determined

Loan guarantees 1,757,829 315,469 To be determined

Short-term Insurance 586,530 0 To be determined

Total $ 2,433,123 $ 332,764

Note: Credit reform requirements apply to the Eximbank insurance program. However, Eximbank

cannot calculate subsidy figures for its insurance program on a per country basis, and as such,

could not provide subsidy figures for its insurance program in the FSU.

Eximbank implemented the following three credit/insurance programs:

Direct Loans This program provides direct loans to finance the sale of U.S. exports to

foreign countries to encourage U.S. exports and create U.S. jobs.

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Appendix II 

Agency Specific Information

Loan Guarantees This program provides loan guarantees to finance the sale of U.S. exports

to foreign countries to encourage U.S. exports and create U.S. jobs.

Short-Term Insurance This program provides short-term insurance for shipments of U.S. goods to

foreign countries.

Page 132 GAO/NSIAD-96-37 Former Soviet Union
Appendix III 

Major Contributors to This Report

National Security and

International Affairs

Division, Washington,

D.C.

Louis Zanardi

David Maurer

Stanley Kostyla

Julie Hirshen

Resources,

Community, and

Economic

Development

Division, Washington,

D.C.

Sarah Veale

Isidro Gomez

Page 133 GAO/NSIAD-96-37 Former Soviet Union
Appendix III 

Major Contributors to This Report

Page 134 GAO/NSIAD-96-37 Former Soviet Union
Appendix III 

Major Contributors to This Report

Page 135 GAO/NSIAD-96-37 Former Soviet Union
Related GAO Products

Weapons of Mass Destruction: DOD Reporting on Cooperative Threat

Reduction Assistance Can Be Improved (GAO/NSIAD-95-191, Sept. 29, 1995)

Foreign Assistance: Assessment of Selected USAID Projects in Russia

(GAO/NSIAD-95-156, Aug. 3, 1995).

Weapons of Mass Destruction: Reducing the Threat From the Former

Soviet Union: An Update (GAO/NSIAD-95-165, June 9, 1995).

Budget Function Classification: Agency Spending by Subfunction and

Object Category, Fiscal Year 1994 (GAO/AIMD-95-116FS, May 10, 1995).

Former Soviet Union: Creditworthiness of Successor States and U.S.

Export Credit Guarantees (GAO/GGD-95-60, Feb. 24, 1995).

Former Soviet Union: U.S. Bilateral Program Lacks Effective Coordination

(GAO/NSIAD-95-10, Feb. 7, 1995).

Weapons of Mass Destruction: Reducing the Threat From the Former

Soviet Union (GAO/NSIAD-95-7, Oct. 7, 1994).

Nuclear Safety: International Assistance Efforts to Make Soviet-Designed

Reactors Safer (GAO/RCED-94-234, Sept. 29, 1994).

Space Station: Update on the Impact of the Expanded Russian Role

(GAO/NSIAD-94-248, July 29, 1994).

Space Station: Impact of Expanded Russian Role in Funding and Research

(GAO/NSIAD-94-220, June 21, 1994).

International Trade: Kazakhstan Unlikely to Be Major Source of Oil for the

United States (GAO/GGD-94-74, Mar. 4, 1994).

Former Soviet Union: Agricultural Reform and Food Situation in Its

Successor States (GAO/GGD-94-17, Nov. 19, 1993).

(711123) Page 136 GAO/NSIAD-96-37 Former Soviet Union
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