Politics Didn't Dictate U.S. Loan to Ukraine;Misguided Policy

July 18, 1996

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To the Editor:

Re your July 15 front-page article on the Export-Import Bank's extension of loan guarantees to a Ukrainian state-controlled company: As it has in Russia, the Export-Import Bank is either unaware that the enterprises it deals with are state-owned or is so driven to promote United States exports that it doesn't care.

In Russia, Ex-Im Bank is extending a $1 billion loan to Aeroflot, the state-owned airline, for the purchase of Pratt & Whitney engines, and is considering assistance to Roslesprom, the Russian state timber industry company. Ex-Im Bank justifies its actions by arguing that it promotes jobs in the United States. But propping up state-owned industries in Russia and Ukraine undercuts efforts by other United States agencies seeking to encourage privatization.

DAVID J. KRAMER Washington, July 16, 1996

The writer is executive coordinator of the Russian and Eurasian programs at the Carnegie Endowment for International Peace.

A version of this article appears in print on , Section A, Page 22 of the National edition with the headline: Politics Didn't Dictate U.S. Loan to Ukraine;Misguided Policy. Order Reprints | Today’s Paper | Subscribe

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