To supplement Ukraine’s war effort against Russia, the United States will provide an additional $4.5 billion to Volodymyr Zelensky’s government. According to Reuters, the US Agency for International Development, an independent federal agency that acts on guidance received from the Secretary of State announced the decision.
Reportedly, out of the total amount, $3 billion will be disbursed in August only with the rest of the amount, expected to be released in coordination with the World Bank and the US Treasury department.
USA’s $8.5 billion help to Ukraine
With the authorisation of the $4.5 billion tranche of payment, the US has made sure on its promise of the $7.5 billion aid package signed by President Joe Biden in May.
Earlier in June, the Biden government had disbursed $1.3 billion before extending another $1.7 billion in payment in July. Moreover, another $1 billion weapons package has been pledged by the White House, taking the total monetary help directed towards Kyiv to an upward of $8.5 billion.
Read more: United States disburses $1.3 bn of total $7.5 bn promised aid to Ukraine
Ever since the war broke out, Ukraine has been funnelling billions into the war to keep up with the Russians. However, Ukrainian officials have claimed that the country faces a potential $5 billion shortfall in funds every month as the war drags on.
Ukraine’s economy is still in a tight spot
Thus, USA’s budget support has been helping the Ukrainian government keep things afloat with critical infrastructures such as hospitals and schools receiving electricity and gas supplies.
However, with the war guzzling out the funds quickly and the US reaching its saturation point, experts have cast worries over Ukraine’s inability to raise funds or access financing from external markets.
If the current trend continues, Ukraine’s annual deficit could rise to 25 per cent of GDP, which only stood at 3.5 per cent prior to the war.
(With inputs from agencies)
WATCH WION LIVE HERE:
