6 billion dollars of aid for Ukraine is under threat. Who can save them
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Economics
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6 billion dollars of aid for Ukraine is under threat. Who can save them

Ukraine may lose billions of dollars
Source:  Associated Press

Foreign journalists sound the alarm, because by the end of September 2024, 6 billion dollars of American aid to Ukraine may "burn up". Congress can save the situation for now.

Points of attention

  • The preservation of aid depends on the decision of the US Congress to expand the powers of the Ministry of Defense to send weapons to Ukraine.
  • The new American aid to Ukraine consists of 700 million dollars, part of which is aimed at strengthening the energy system.
  • Energy support in the amount of 325 million dollars will make it possible to repair Ukrainian energy generating facilities and strengthen the physical security of the energy infrastructure.

Ukraine may lose billions of dollars

As the journalists managed to find out, Congress must urgently pass a decision on expanding the powers of the US Defense Ministry to send weapons from its stockpiles to Ukraine.

US leader Joe Biden's team has already asked Congress to include the funding authority in any resolution lawmakers are set to pass before the end of the fiscal year (until September 30).

What is important to understand is that this is needed to fund the federal government and prevent it from shutting down.

On the conviction of American officials, it will be possible to extend the authority for another year.

Just now, the US Department of Defense team is considering other options to protect aid to Ukraine if Congress does not vote on funding. Journalists have not yet been able to find out which scenarios they are talking about.

According to insiders, just over $4 billion in long-term financing is now available to help Ukraine. These funds are used to pay for long-term arms supply contracts.

What is known about the new American aid to Ukraine

According to the head of the US State Department, Anthony Blinken, it is more than 700 million dollars.

Part of the aid will be aimed at strengthening the energy system, which Russia has repeatedly subjected to blows on the eve of the expected severe winter, the American diplomat emphasized.

He also added that energy support in the amount of $325 million will help:

  1. to repair and restore Ukrainian energy generating facilities,

  2. provide backup power in emergency situations,

  3. strengthen the physical security of the energy infrastructure.

In addition, it is emphasized that about 290 million dollars will go to finance programs to provide food, water, housing, health care and education for Ukrainians who need help in the country and refugees outside its borders.

Anthony Blinken added that the rest of the aid, which is 102 million dollars, will be directed to demining activities.

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