Washington – Reuters
The United States will provide an additional $4.5 billion to the government of Ukraine, the U.S. Agency for International Development said Monday, bringing its total budget support since the Russian attack in February to $8.5 billion.
The agency added that the funding, which is being coordinated with the US Treasury through the World Bank, will go to the Ukrainian government in tranches starting with the disbursement of $3 billion in August.
The agency said it 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 arms package worth $1 billion soon.
The US funds are intended to help the Ukrainian government continue to carry out its essential functions, including social and financial assistance to a growing impoverished population, children, the disabled, and millions of internally displaced persons, while the war continues.
Ukrainian officials estimate that 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 conflict and declining tax revenues.
Economists say that would swell Ukraine’s annual fiscal deficit to 25 percent of gross domestic product, compared with 3.5 percent before the war.
The World Bank estimates that 55 percent of Ukrainians will live in poverty by the end of 2023, due to the repercussions of the war, compared to 2.5 percent before the war began.
“The United States remains committed to supporting Ukraine and its people in the wake of Russia’s baseless and unjustified war,” the agency said in a statement.