Biden Pledges Another $500 Million In Aid To Ukraine

Topline

The United States will give Ukraine’s government an extra $500 million in “direct budgetary aid,” the White House said Wednesday, marking the latest round of U.S. assistance as the Russian invasion devastates Ukraine’s population, economy and infrastructure.

President Joe Biden delivers remarks on Covid-19 Wednesday in the South Court Auditorium, next to … [+] the White House.

AFP via Getty Images

Key Facts

Biden promised the aid in a nearly hour-long call with Ukrainian President Volodymyr Zelensky, during which the two leaders also discussed security assistance to Ukraine and sanctions against Russia, according to a White House readout.

Zelensky said in a tweet he discussed “defensive support” and “macro-financial and humanitarian aid” during his call with Biden.

The White House didn’t specify how Ukraine will use this additional funding, but Bloomberg reported Tuesday that direct budgetary aid could pay for military or humanitarian priorities or help fund normal Ukrainian government services.

What To Watch For

The Biden Administration is encouraging U.S. allies to also offer direct aid to the Ukrainian government, Bloomberg reported, citing four unnamed sources.

Tangent

The infusion of extra U.S. aid comes as Russia’s invasion wreaks havoc on Ukraine’s economy and infrastructure. The International Monetary Fund estimated earlier this month the country’s economic output will shrink at least 10% this year—but losses could be as high as 35% if the war drags on for a long period of time. The Ukrainian government’s budget will also likely take a hit: Tax revenue will decline and expenses will increase somewhat, the IMF said, and Zelensky has promised to make some taxes voluntary amid the war.

Key Background

Since the war with Russia began, the United States has rushed to send security assistance to Ukraine. The Biden Administration has signed off on more than $1 billion in military aid to help Ukraine fight invading Russian forces in recent weeks, promising hundreds of Stinger anti-aircraft missiles, Javelin anti-tank weapons and drones. Biden has also pledged humanitarian aid to Ukraine and neighboring countries that have absorbed millions of refugees. Some of this assistance was authorized in a $13.6 billion Ukrainian aid package passed by Congress three weeks ago, which included billions of dollars for humanitarian, military and economic needs as well as extra funding for the Pentagon. Ukrainian and Russian officials are negotiating a possible peace deal, but U.S. officials remain skeptical about its progress.

Big Number

$680 million. That’s how much foreign assistance the United States sent to Ukraine in 2020, the most recent fiscal year for which full data is available, including both military and economic funding. The U.S. government has given Ukraine more than $500 million in annual foreign aid in recent years, but funding will likely jump significantly this year.