- Advertisment -
HomeBusinessThe United States will send an additional $4.5 billion to Ukraine to...

The United States will send an additional $4.5 billion to Ukraine to meet budget needs, bringing the total aid to $8.5 billion MIGMG News

- Advertisment -

News

The United States will provide an additional $4.5 billion to the Ukrainian government, the U.S. Agency for International Development said on Monday, bringing the total budget support since the Russian invasion in February to $8.5 billion.

The US Agency for International Development said the funding, coordinated with the US Treasury through the World Bank, will go to the Ukrainian government in tranches, starting with the $3 billion payment in August.

The US Agency for International Development said this follows previous transfers of $1.7 billion in July and $1.3 billion in June. Washington has also provided billions of dollars in military support, and is planning a new $1 billion arms package soon.

The US money is intended to help the Ukrainian government maintain essential functions, including social and financial assistance to the growing poor, children with disabilities, and millions of internally displaced people, as the war continues.

Ukrainian officials estimate that the country faces a fiscal deficit of $5 billion a month – or 2.5% of pre-war GDP – due to the cost of the war and declining tax revenue. Economists say that would balloon Ukraine’s annual deficit to 25% of GDP, compared to 3.5% before the conflict.

The World Bank estimates that 55% of Ukrainians will live in poverty by the end of 2023 as a result of the war and large numbers of displaced people, compared to 2.5% before the war began.

The US Agency for International Development said US budget support has enabled the Ukrainian government to continue the flow of gas and electricity to hospitals, schools, and other critical infrastructure and to deliver urgently needed humanitarian supplies to its citizens.

The money has also paid for health care workers, teachers and other civil servants.

The US Agency for International Development said the World Bank has put in place strict safeguards, along with USAID-funded external watchdogs built within the Ukrainian government to make sure the money is directed where it’s supposed to go.

“The United States remains committed to supporting Ukraine and its people in the wake of Russia’s unwarranted and unjustified war,” the US Agency for International Development said in a statement.

The injection of new money to Ukraine comes as the war, which Russia calls a “special military operation”, extends into its sixth month, with millions of Ukrainians displaced and authorities warning of possible gas shortages in the winter.

USAID is an independent federal agency that receives overall foreign policy direction from the Secretary of State.

Read the latest news And the Breaking news over here

.

RELATED ARTICLES
- Advertisment -

Most Popular