POLITICS
03/04/2014 07:49 am ET Updated Mar 04, 2014

Ukraine Aid Package Unveiled By White House

KIEV, Ukraine (AP) -- The Obama administration readied economic sanctions against Russia on Tuesday as it formally announced an aid package of $1 billion in energy subsidies to Ukraine amid worries that Moscow would extend its military reach into the mainland of the former Soviet republic.

U.S. Secretary of State John Kerry arrived in Kiev for a five-hour show of support for the fledgling Ukraine government as it grapples with a military takeover of Crimea, a strategic, mostly pro-Russian region in the country's southeast. Kerry also was to pay homage to the dozens of protesters who were slain Feb. 20 in anti-government demonstrations that days later ousted Ukraine President Viktor Yanukovych.

As Kerry arrived, the White House announced a package of energy aid, training for financial and election institutions, and anti-corruption efforts. U.S. officials traveling with Kerry also said the Obama administration is considering slapping Russia with unspecified economic sanctions as soon as this week.

Additionally, the officials said, the U.S. has suspended what was described as a narrow set of discussions with Russia over a bilateral trade investment treaty. It is also going to provide technical advice to the Ukraine government about its trade rights with Russia. The officials spoke on condition of anonymity because they were not authorized to be quoted by name before the official announcement was made.

Russian President Vladimir Putin pulled his forces back from the Ukrainian border on Tuesday yet said Moscow reserves the right to use all means to protect Russians in the country. He accused the West of encouraging an anti-constitutional coup in Ukraine and driving it onto anarchy and declared that any sanctions the West places on Russia will backfire.

Earlier, the Pentagon announced it was suspending military-to-military engagements with Russia, including exercises, bilateral meetings, port visits and conferences.

European leaders already are considering sanctions on exports of Russia's natural gas, uranium and coal industries. U.S. sanctions likely would be similar to Europe's.

Some Republicans in Congress were considering a possible package of "debilitating economic sanctions" to get Putin's attention. House Foreign Affairs Committee Chairman Ed Royce said that the U.S. and Europe should act collectively to threaten the Russian stock market, economy and ruble if Russia doesn't withdraw from Crimea.

"We can't just keep talking," Royce said Monday. "We need to do something."

The European Union issued a Thursday deadline for Putin to pull back his troops from Crimea or also face a rejection of visa liberalization and economic cooperation negotiations that have long been in the works.

The U.S. officials traveling to Kiev said Washington is warily watching to see whether Russia will try to advance beyond Crimea.

They cited reports of Russian helicopters nearly flying into mainland Ukraine airspace before being intercepted by jets controlled by Kiev. The officials said it's believed that as many as 16,000 Russian troops have deployed to Crimea, while Ukrainian forces amassed on both sides of an isthmus that separates the region's peninsula from the mainland.

The officials also said there is no support currently within the Obama administration to eventually let Russia annex Crimea - a possibility that has been raised quietly amid questions about U.S. interests in the pro-Russian region. They said it is up to the Ukraine government to decide whether a referendum should be held to let the Crimean people decide their own fate.

Speaking Monday at a U.N. session in Geneva, Russian Foreign Minister Sergey Lavrov attempted to deflect blame back on the West. He defended the deployment of Russian troops in Ukraine as a necessary protection for his country's citizens living there.

"Those who are trying to interpret the situation as a sort of aggression and threatening us with sanctions and boycotts, these are the same partners who have been consistently and vigorously encouraging the political powers close to them to declare ultimatums and renounce dialogue," Lavrov said.

"This is a question of defending our citizens and compatriots, ensuring human rights, especially the right to life," he said.

President Barack Obama on Monday described the Russian advance as a violation of international law. He called on Congress to approve an aid package for the new Ukrainian government and repeated earlier threats that the U.S. will take steps to hobble Russia's economy and isolate it diplomatically if Putin does not back down.

"The strong condemnation that has proceeded from countries around the world indicates the degree to which Russia is on the wrong side of history," Obama said.

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The full aid package, Per the White House:

· Critical assistance with economic reforms, including by cushioning their impact on vulnerable Ukrainians: The U.S. Administration is working with Congress and the Government of Ukraine to provide $1 billion in loan guarantees aimed at helping insulate vulnerable Ukrainians from the effects of reduced energy subsidies. At the same time, the United States is moving quickly to provide technical expertise to help the National Bank of Ukraine and the Ministry of Finance address their most pressing challenges. The United States is dispatching highly experienced technical advisors to help the Ukrainian financial authorities manage immediate market pressures. The United States will also provide expertise to help Ukraine implement critical energy sector reforms.


·Conducting free, fair, and inclusive elections: The United States will provide technical assistance to train election observers, help bring electoral processes in line with international standards, and promote robust participation by civil society organizations and a free and independent media.


·Combatting corruption and recovering stolen assets: The United States is preparing to help the government respond to the clear demands of the Ukrainian people for more robust safeguards against corruption and additional efforts to recover assets stolen from the people of Ukraine. The United States will support the government as it takes tangible steps to reduce corruption and increase transparency, including in areas such as e-government and public procurement. The United States is deploying an interagency team of experts to Kyiv this week to begin to work with their Ukrainian counterparts to identify assets that may have been stolen, identify their current location, and assist in returning those assets to Ukraine.


·Withstanding politically motivated trade actions by Russia, including in the area of energy: The United States is preparing to provide technical advice to the Ukrainian government on Ukraine’s WTO rights with respect to trade with Russia. At the same time the United States is ready to provide assistance and financing to help Ukrainian businesses find new export markets and adjust to trade pressures and to enhance energy efficiency, helping to reduce dependence on imported gas.

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