The UK Government had been supporting Ukraine’s economic and social development since 1991. The initial programme up to 1997 was handled by the British Know How Fund (KHF), managed jointly by the Foreign and Commonwealth Office and the then Overseas Development Administration. The focus was very much aimed at transferring relevant western expertise and experience in order to promote a market economy and pluralist democracy.

With the creation of DFID in May 1997 the development programme to Ukraine shifted towards DFID’s broader agenda of tackling poverty. More emphasis was given to social and economic reforms which could be both more sustainable and have greater impact on people’s lives. DFID provided assistance to central government, regional authorities and local communities. Over this period up until present emphasis was given to:

• improving the delivery of social services
• reforming social protection laws
• providing opportunities for re-skilling people and broadening their employment opportunities
• assisting small and medium enterprises to expand and to help with unravelling the many business regulatory controls
• giving a voice to local people so they feel more engaged in their communities and want to play a more active part in the political and social life of their town, village or city
• guiding the government to put in place a more consistent and transparent trade policy to open up the country to greater international trade
• working with vulnerable groups affected by HIV/AIDS and seeking with other donors and the government to make more effective the co-ordination of the country-wide programme to tackle HIV/AIDS.

In 1991-2006 the UK has given £105m in bilateral aid to Ukraine.