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US to send additional $4.5 billion in Ukraine aid

US, Australia and Japan vow to work together against China
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The US will provide additional funding of $4.5 billion to support the government of Ukraine.

The total budgetary support amounts to $8.5 billion since Russia’s invasion in February. According to Reuters, the U.S. Agency for International Development revealed the transfer amount on Monday.

US will send additional $4.5 billion to Ukraine in tranches

The funding will be sent to the Ukraine government in tranches. It will start with a $3 billion transfer in August, the USAID stated. Earlier funding amounted to $1.3 billion in June followed by $1.7 billion in July, as per USAID’s statement.

The funds are to help the Ukrainian government to maintain its primary functions. These include social and financial assistance for the underprivileged population, persons with disabilities, and internally displaced persons, as the Russia-Ukraine war goes on.

With the help of US funding, the Ukrainian government is able to supply gas and power to hospitals, schools, and other important infrastructures. The country can also deliver essentials to citizens in need. The funds also pay for the salaries of healthcare workers, teachers, and other civil servants.

Apart from budget support, the US has also provided military support. With the decision to send an additional $4.5 billion to Ukraine, Washington also plans to arrange $1 billion in weapons for the country.

The transfer will be coordinated with the U.S. Treasury Department through the World Bank. According to USAID, the transfer of funds is monitored by the World Bank and USAID-funded third-party organizations within Ukraine to ensure safeguarding.

Why is the US helping Ukraine?

“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.

Ukraine faces a $5 billion fiscal loss every month or 2.5% of pre-war GDP due to ever-growing war costs and decreasing tax revenues, according to officials.

Economists have predicted further loss in the annual deficit of the country. According to a World Bank estimate, over 55% of Ukrainians will be poor by the end of 2023 due to war and rising numbers of displaced persons. Previously, 2.5% of the population was living in poverty.

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About the author

Brendan Byrne

While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala.




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