The U.S. Treasury Department on Wednesday announced the transfer of $1.3 billion in economic aid to Ukraine, part of an initial $7.5 billion in support provided by the Biden administration in Kyiv was promised in May.
• Also read: London massively increases military support for Kyiv
• Also read: “No problem” for Russia if Finland and Sweden join NATO
• Also read: Recognition of the independence of pro-Russian areas: Zelenskyi ends diplomatic relations with Syria
“With this economic aid, we reaffirm our unwavering commitment to the people of Ukraine as they defend themselves against Putin’s aggression and work to sustain their economy,” Treasury Secretary Janet Yellen said in a statement.
That $1.3 billion will be transferred to the Ukrainian government through the World Bank and is part of $7.5 billion in economic aid from the United States under a huge emergency loan signed by President Joe Biden.
According to World Bank estimates, Russia’s war in Ukraine in 2022 is likely to result in a 45% contraction in Ukraine’s economy.
The country is experiencing a budget deficit that is widening by $5 billion a month due to the fall in its revenues and its inability to access financing in external markets.
International donors have stepped up to help Ukraine. According to the Ministry of Finance, the G7 and the European Union have pledged to fund Kyiv with $29.6 billion, including $8.5 billion in American aid.
In April and May, Washington disbursed two $500 million grants from the World Bank to address the country’s immediate needs “following its unprovoked and unjustified invasion by Russia,” according to the US Treasury Department.
In May, the US Congress passed the Ukraine Supplementary Appropriations Act, allowing the United States to provide $7.5 billion in direct economic aid to the Ukrainian government.
Moreover, since the beginning of the Russian invasion, Washington has already provided Kyiv with more than $6 billion worth of military equipment.