The United States Agency for International Development (USAID) has notified the Energy Community Secretariat of the termination of the agreement to provide grants to the Ukraine Energy Support Fund for a total amount of $75 million.
Points of attention
- USAID terminated a $75 million grant agreement with the Ukraine Energy Support Fund, affecting the funds available for equipment procurement in Ukraine's energy sector.
- The decision is part of a broader strategy to suspend foreign aid programs for reviews of policy objectives.
- The termination of the grant may lead to limitations in the availability of funds for equipment in Ukraine's energy sector.
USAID terminates agreement to support Ukraine's energy sector
This is reported by the Energy Community.
The Energy Community Secretariat has received official notification from USAID about the termination of the grant agreement with the Energy Support Fund of Ukraine for $75 million. The Energy Community Secretariat has confirmed receipt of this notification and is currently awaiting further clarification from USAID. The termination of this grant will reduce the funds available for the procurement of necessary equipment for the energy sector of Ukraine.
It is noted that the letter from USAID was received on February 27.
In 2023, the agency entered into an agreement to provide the Energy Support Fund with a grant in the amount of $25 million, and in 2024 announced its intention to increase the grant by $50 million.
As a reminder, on January 20, US President Donald Trump signed an executive order suspending all foreign aid programs for 90 days pending reviews to determine whether they meet his policy goals.
US Secretary of State Marco Rubio on January 24 ordered a “cease fire” on all foreign aid. He made an exception for emergency food aid, which could affect, among other things, Gaza and Sudan.
