Yellen: The United States is spending $3.4 billion in aid to Ukraine’s budget

Written by Andrea Shalal

WASHINGTON (Reuters) – The United States has sent an additional $3.4 billion in aid to Ukraine’s budget, giving the war-torn country vital resources amid intensifying Russian attacks on civilians and infrastructure in Ukraine, U.S. Treasury Secretary Janet Yellen said on Monday.

The direct budget assistance, provided in coordination with USAID and the State Department, represents the final payment under the Ukraine Supplemental Security Appropriations Act of 2024, Yellen said in a statement.

A US official said the funding brings total US budget aid to Ukraine to just over $30 billion since the Russian invasion in February 2022. Most of that money is used to keep the Ukrainian government running by paying the salaries of teachers and other state employees.

Earlier on Monday, US President Joe Biden announced $2.5 billion in additional security assistance to Ukraine, which is separate from direct budget aid.

After nearly three years of war, Washington has pledged $175 billion in total aid to Ukraine.

President Joe Biden’s administration is racing to shore up support for Ukraine before Republican President-elect Donald Trump takes office on January 20, in light of his public skepticism of military aid and his pledge to end the Ukrainian war within 24 hours of taking office.

Trump wants Ukrainian President Volodymyr Zelensky to make a deal with Russian President Vladimir Putin to end the nearly three-year-old Ukrainian war. Some of his fellow Republicans, who will control both chambers of the US Congress starting next month, have also expressed reluctance to send more aid to Kiev.

Yellen said continued economic aid to Ukraine was critical to allowing it to maintain government services and continue defending its sovereignty, warning against moves to cut funding.

“Ukraine’s success is in America’s fundamental national interest,” she said, pledging to maintain pressure on Moscow by imposing sanctions and helping to enable Ukraine to achieve a just peace.

“We must not retreat in this effort,” she said.

She stressed that US budget aid to Ukraine was and continues to be conditional on reforms aimed at strengthening law enforcement, improving the transparency and efficiency of government institutions, and strengthening anti-corruption efforts.

The latest financing comes in addition to a $20 billion U.S. share of a $50 billion G7 loan to Ukraine that the Treasury transferred to a World Bank intermediate fund for Ukraine earlier this month. This money is backed by profits earned from frozen Russian sovereign assets.

Biden said on Wednesday that he had asked the Defense Department to continue increasing arms shipments to Ukraine, after condemning Russia’s Christmas Day attack on Ukraine’s energy system and some of its cities.