Following a weekend visit to Kiev and Donetsk, World Bank president James Wolfensohn announced that the World Bank is prepared to offer Ukraine $1 billion per annum for the next three years. (14) An initial $10 million already is on its way to pay for a pilot project to shut down three unprofitable coal fields in the Donbass by next February, with an additional $100 million in funds by the end of 1996 in a World Bank program to restructure the region’s unprofitable and strife-ridden coal mining industry. Wolfensohn made clear, however, that the go-ahead for other programs in the portfolio being readied for Ukraine would depend on accelerating market reforms, especially price liberalization and the privatization program.
The Ukrainian parliament last week voted against a bill to expand private ownership of land. (15) A proposed $250 million World Bank loan for agricultural development would require privatization and land reform. (16) A discrepancy between intentions and deeds has frustrated international efforts to put Ukraine on the path to economic recovery. Kuchma, who declared on November 18 that "there is no alternative to reforms" (17) has earned Western appreciation for his commitment but is having difficulty in overcoming institutional resistance to reforms.
Karabakh Negotiations Stumble Over Lachin.