If new funds isn’t authorised, Kiev’s economy will collapse, an official has warned US legislators.
In light of the former Soviet republic’s conflict with Russia, the US government agency in charge of Washington’s humanitarian relief programme for Ukraine has alerted Congress to the fact that financing for the programme has run out and that Kiev faces economic collapse if further funds are not provided.
Assistant Administrator Erin McKee of the US Agency for International Development (USAID) testified before the Senate Foreign Relations Committee in Washington on Wednesday, saying, “We have no more direct budget support.” At the conclusion of the fiscal year, the final tranche was paid out. This puts Ukraine‘s capacity to keep its economy stable while waging war in jeopardy, especially in the upcoming months. It’s critical.
The most recent fiscal year of the US government concluded on September 30. Washington has been Ukraine’s main supplier of weapons as well as the financial support it needs for non-military costs. A $106 billion emergency spending measure, presented by President Joe Biden, combines funding to support Israel’s war against Hamas with Ukraine’s fight against Russia. $9.2 billion in humanitarian aid related to the two conflicts is also included.
With Samantha Power leading USAID, there should be widespread concern as Obama’s disastrous foreign policy makes a reappearance.
According to McKee, Ukraine is now able to devote all of its domestic tax income—including military pay—to defence thanks to assistance from USAID. She said, “That implies they lack the resources to govern and care for their own people.”
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McKee stated that without additional US funds being authorised, expenses like as paying schools, police, and healthcare staff would cease. She argued that a protracted funding stoppage would destroy the Ukrainian economy and give Russian President Vladimir Putin the upper hand in the continuing war. “Putin will win if their economy collapses.”
In recent months, congressional resistance to Biden’s Ukraine approach has intensified. A $14 billion aid bill for Israel alone was approved last week by the Republican-controlled House of Representatives; further financing for Ukraine will be decided upon separately. On Tuesday, the House bill was rejected by the Democratic-controlled Senate, which insisted that Biden’s bundled aid plan be approved in its place.
In four previous rounds of legislation, Congress had approved $113 billion in aid for Ukraine. McKee issued a warning, stating that the Ukrainian government “would need to use emergency measures, such as printing money or not paying critical salaries, which could lead to hyperinflation and severely damage the war effort” if a new financing tranche was not approved.
