Dear beneficiaries, partners and colleagues,

Every year has its memorable moments, and USAID claimed several in 2018 that will impact global development in general, and our efforts in Ukraine, more specifically.

First, in September, USAID Administrator Mark Green unveiled USAID’s new global development approach, which prioritizes supporting host country partners to become self-reliant and empowered to lead their own development journeys. The Journey to Self-Reliance, as we call the new development model, will work to improve the ability of the host country to plan, finance, and implement solutions to its own development challenges. After several years of collaboration with the Government of Ukraine (GOU) to more closely coordinate and target development efforts, USAID/Ukraine was able to seamlessly incorporate the new approach to this partnership.

The Mission finalized its new five-year Country Development Cooperation Strategy, which incorporates the Journey to Self-Reliance approach, and which was approved by Washington as 2019 began. This dynamic, new strategy is centered on helping develop an independent, democratic, prosperous, and healthy Ukraine united around core European values.

In 2018, USAID/Ukraine continued to support GOU anti-corruption efforts with several notable achievements. First, the Mission assisted the Ministry of Health to implement systemic reforms that created three new ministry agencies and initiated a new “money follows the patient” health system finance model.

The Mission also initiated a new five-year, $85 million Energy Security Project that will enhance Ukraine’s energy security by: (1) helping key government agencies and the energy regulator meet European Union requirements; (2) supporting unbundling transmission and distribution from generation and supply in both the gas and electricity sectors; and (3) establishing competitive energy markets in the electricity, natural gas, and district heating sectors; and (4) advancing renewables.

Meanwhile, USAID/Ukraine’s successful decentralization activity added 25 newly consolidated communities to the 50 it already supports, continuing to empower local activists while improving the effectiveness of municipal governments.

As 2018 ended, USAID announced two new activities that will focus efforts on Luhansk and Donetsk Oblasts, the two regions most impacted by the ongoing armed conflict with Russia. Together valued at approximately $120 million over five years, the two activities will improve democratic governance and stimulate economic growth in these and neighboring oblasts.

Susan K. Fritz
Mission Director

USAID/Ukraine Annual Report 2018 Cover Page