U.S. to send $4.5 billion more to Ukraine for budget needs

Sherritt International

08/08/2022 17:00

By Andrea Shalal
    Aug 8 (Reuters) - The United States will provide an
additional $4.5 billion to Ukraine's government, bringing its
total budgetary support since Russia's February invasion to $8.5
billion, the U.S. Agency for International Development said on
Monday.
    The funding, coordinated with the U.S. Treasury Department
through the World Bank, will go to the Ukraine government in
tranches, beginning with a $3 billion disbursement in August,
USAID, the Agency for International Development, said.
    It follows previous transfers of $1.7 billion in July and
$1.3 billion in June, USAID said. Washington has also provided
billions of dollars in military support, and plans a new $1
billion weapons package shortly.  urn:newsml:reuters.com:*:nL1N2ZH1LZ
   The U.S. funds are to help the Ukrainian government maintain
essential functions, including social and financial assistance
for the growing poor population, children with disabilities, and
millions of internally displaced persons, as the war drags on.
    Ukrainian officials estimate the country faces a $5
billion-a-month fiscal shortfall - or 2.5% of pre-war gross
domestic product - due to the cost of the war and declining tax
revenues. Economists say that will swell Ukraine's annual
deficit to 25% of GDP, compared with 3.5% before the conflict.
    The World Bank estimates that 55% of Ukrainians will be
living in poverty by the end of 2023 as a result of the war and
the large numbers of displaced persons, compared with 2.5%
before the start of the war.
    USAID said U.S. budget support has enabled the Ukrainian
government to keep gas and electricity flowing to hospitals,
schools and other critical infrastructure and deliver urgently
needed humanitarian supplies to citizens. 
    The funds have also paid for healthcare workers, teachers
and other civil servants.
    USAID said robust safeguards had been put in place by the
World Bank, along with USAID-funded, third-party watchdogs
embedded within the Ukrainian government to make sure the funds
are directed where they are meant to go.
    "The United States remains committed to supporting Ukraine
and its people in the wake of Russia’s unprovoked and
unjustified war," USAID said in a statement.
    The injection of fresh cash for Ukraine comes as the war,
which Russia calls "a special military operation," stretches
into a sixth month, with millions of Ukrainians displaced and
authorities warning of likely gas shortages in winter.
    USAID is an independent federal agency that receives overall
foreign policy guidance from the Secretary of State.

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US readies new $1 billion Ukraine weapons package     https://www.reuters.com/world/europe/exclusive-us-readies-new-1-billion-ukraine-weapons-package-2022-08-05/
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 (Reporting by Andrea Shalal; Editing by Heather Timmons and
Howard Goller)
 ((andrea.shalal@thomsonreuters.com;))