Washington Trying to Squeeze in Last Batch of Aid to Ukraine Before Major Cuts

© Sputnik / STR / Go to the mediabankLach Gates on Independence Square in Kiev.
Lach Gates on Independence Square in Kiev. - Sputnik International
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The White House is planning to make major cuts to foreign aid next year, including a 68.8% reduction in assistance programs for Ukraine. However, before this plan comes into force, the US government intends to award Kiev a multibillion dollar grant to promote business development, economic competitiveness and boost trade.

The initiative is designed "to encourage startup businesses and small and medium sized enterprises (SMEs), increase domestic market competition and support the competitiveness of Ukrainian firms in international markets," the request for proposals (RFP) published on the Federal Business Opportunities (FBO) website said.

The US government, represented by the US Agency for International Development (USAID), is planning to award a five-year-long contract, offering $12,500,000 budget for grants awarded under the agreement.

​The closing date for potential participants is May 15, 2017.

U.S. Vice President Mike Pence and Ukraine President Petro Poroshenko at the 53rd Munich Security Conference in Munich, Germany - Sputnik International
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The contractor is supposed to "implement activities that improve the business climate, including promoting increased competition in domestic markets; assist new industries and SMEs to develop and compete in markets abroad; and develop an export promotion capacity in the Government of Ukraine (GOU)."

The service provider also must enhance Kiev's participation in the World Trade Organization (WTO), while making sure that the Ukrainian government complies with WTO and European Union (EU)/Ukraine Deep and Comprehensive Free Trade Area (DCFTA) requirements. In addition, the contractor needs to "help lower the cost of trading across Ukraine's borders," the document stated.

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