The US will provide an additional $4.5 billion to the government of Ukraine, bringing its total budget support since Russia’s February invasion to $8.5 billion, the US Agency for International Development (USAID) said on Monday. thursday (8).
The funding, coordinated with the US Treasury Department through the World Bank, will go to the government of Ukraine in installments, starting with a $3 billion disbursement in August, USAID said.
It follows previous transfers of $1.7 billion in July and $1.3 billion in June, the agency said.
Washington has also provided billions of dollars in military support and plans a new $1 billion weapons package soon.
The US 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 people, as the war drags on.
Ukrainian officials estimate the country faces a fiscal deficit of $5 billion a month — or 2.5 percent of pre-war gross domestic product — due to the cost of the war and declining tax revenues.
Economists say this will increase Ukraine’s annual deficit to 25% of GDP, compared with 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 the large number of displaced people, compared to 2.5% before the start of the war.
USAID said US budget support has enabled the Ukrainian government to maintain the flow of gas and electricity to hospitals, schools and other critical infrastructure and deliver urgently needed humanitarian supplies to citizens.
The funds also paid health care workers, teachers and other civil servants.
USAID said robust inspections have been implemented by the World Bank, along with USAID-funded third-party surveillance agencies incorporated into the Ukrainian government to ensure funds are directed where they are supposed to go.
“The United States remains committed to supporting Ukraine and its people in the wake of Russia’s unprovoked and unwarranted war,” USAID said in a statement.
The injection of new money into Ukraine comes as the war, which Russia calls “a special military operation”, stretches into a sixth month, with millions of displaced Ukrainians and officials warning of likely gas shortages in the country. Winter.
USAID is an independent federal agency that receives general foreign policy guidance from the Secretary of State.
Source: CNN Brasil
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