In a significant show of support, the United States has announced an additional investment of $230 million to aid Ukraine’s economy and reconstruction efforts. Administrator Samantha Power, representing the U.S. Agency for International Development (USAID), made this announcement during her visit to Kyiv today.
The economic fallout resulting from Russia’s full-scale military invasion has taken a severe toll on Ukraine. With an estimated contraction of 31 percent in 2022 and significant unemployment challenges, Ukraine is in dire need of assistance. The additional funding from USAID aims to address these pressing issues by boosting private sector productivity, job creation, and exports.
USAID plans to utilize the funding to provide technical assistance to Ukrainian businesses, enabling them to scale their operations and meet European Union (EU) regulations for exporting their products and services into Europe. This support will not only facilitate increased trade but also create employment opportunities for the Ukrainian population. Furthermore, USAID will collaborate with financial institutions to offer grants and technical assistance to facilitate the necessary financing for business growth, contributing to the development of Ukraine’s future.
The focus of USAID’s efforts extends beyond immediate economic recovery. The agency aims to foster a strong, diverse, and open Ukrainian economy by strengthening the business support ecosystem. Assistance will be provided to small, medium, and large enterprises, empowering them to become more competitive and sustainable. Recognizing the crucial role played by small businesses in driving economic activity and employment, USAID will support workforce development initiatives, including training programs, with the goal of generating approximately 100,000 new jobs. These endeavors will not only bolster the economy but also contribute to increased public revenue, ultimately reducing the country’s reliance on external assistance.
This substantial investment reinforces the United States’ unwavering commitment to the people of Ukraine. Since the full-scale invasion by Putin’s forces in February 2022, the United States, through USAID, has provided more than $23 billion in humanitarian, economic, and development assistance to Ukraine. This latest pledge underscores the enduring partnership between the two nations and their shared determination to support Ukraine’s recovery and future prosperity.