U.S. Assistance to the Former Soviet Union 1991-2001: A History of Administration and Congressional Action

Publication Date: January 2002

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Government

Type:

Abstract:

The future of the 12 successor states of the former Soviet Union is a major concern of U.S. foreign policy and congressional attention, and the U.S. assistance program has been a major tool for influencing the direction of that region. This report provides a chronological history of U.S. assistance to the Soviet Union and the New Independent States (NIS) to the end of 2001, focusing on Administration and Congressional actions -- proposals, policy pronouncements, debate, and legislation -- rather than the details of program implementation in the field.

During 1991, the thrust of the debate between Congress and the Administration was whether and how to assist the Soviet Union as it became increasingly unstable and then headed toward dissolution. Chiefly concerned with the effect of the region's instability on its nuclear weapons holdings, Congress responded with the Nunn-Lugar legislation. In 1992, the aid debate focused on the FREEDOM Support Act legislative proposal that laid out the basic authorities, conditions, and guidelines for a technical assistance program.

In 1993, the Clinton Administration proposed several new priorities for the program and a dramatic increase in the amount of funding, especially for Russia. In all, the President requested $2.5 billion for the region. After considerable debate, Congress approved the request. But, by 1994, a mix of concerns regarding the U.S. budget deficit, the unpromising outcome of the December 1993 Russian parliamentary elections, the Ames spy case, and critical questions about the implementation of the assistance program, led to efforts, some successful, to cut funding for the region and alter existing priorities. In 1995, the new Republican majority in the 104th Congress cut funds to the region through a series of rescissions and lowered levels of funding in the annual foreign aid bill. Russia was a particular target of these cuts, as well as of conditionality and funding earmarks favoring other NIS countries. In 1996, the tone of debate was lower pitched, and Congress adopted aid levels, earmarks, and conditions almost identical to those of the previous year.

In 1997, responding to the Administration's Partnership for Freedom initiative, Congress approved a significant increase in assistance for the NIS. The initiative promised to place greater emphasis on grassroots, people-to-people exchanges and partnerships. In 1998, NIS account levels were raised again amid concerns regarding the financial stability of the region in the wake of the August financial crisis in Russia. In 1999, the approved overall FY2000 funding level was roughly the same as the year before, but a large amount was diverted from traditional economic assistance to nonproliferation activities under the Expanded Threat Reduction Initiative. In 2000, criticism of Russia's behavior and accusations that the Administration mishandled U.S.-Russian relations contributed to multiple efforts to condition assistance to Russia. In 2001, the need to obtain cooperation from former Soviet Union countries in the war on terrorism and what was seen as a very forthcoming stance by Russia and critical Central Asian countries led to a re-evaluation of aid relations with them and other front line states.