Ukraine to receive $ 7.85 billion in US aid, first tranche expected in coming weeks

In a move to bolster Ukraine's battered energy infrastructure after Russian strikes, the United States also committed $500 million in new energy assistance and redirected an additional $324 million for urgent energy needs.

Jul 30, 2024 - 18:45

Ukraine to receive $ 7.85 billion in US aid, first tranche expected in coming weeks

Ukrainian Prime Minister Denys Shmyhal and US Special Representative for Ukraine's Economic Recovery, Penny Pritzker.

Ukrainian Prime Minister Denys Shmyhal announced that Ukraine will receive $7.85 billion in direct budget support from the United States in 2024, and the first $3.9 billion is already expected in the coming weeks.

Ukrainian Prime Minister met with the US Special Representative for Ukraine’s Economic Recovery, Penny Pritzker, in Kyiv on 29 July to discuss crucial economic support and recovery initiatives, underscoring the US commitment to Ukraine’s recovery after Russia’s war.

A key outcome of the talks was the confirmation of imminent US financial aid, according to Shmyhal.

Frozen Russian assets

The discussions also centered on the recent G7 decision to allocate $50 billion to Ukraine from future revenues of frozen Russian assets. Shmyhal expressed Ukraine’s aim to access these funds starting in 2025, emphasizing the importance of flexibility in their use, including for military needs.

Earlier, European Economic Commissioner Paolo Gentiloni announced that the G7 is expected to finalize a framework for a $50 billion loan package for Ukraine by October 2024. The loan will be backed by approximately $300 billion in frozen Russian central bank assets seized after Russia’s 2022 invasion of Ukraine.

Energy sector support

Energy sector support emerged as another crucial topic. The US pledged $500 million in new energy assistance and redirected $324 million for urgent energy requirements.

Shmyhal stressed the critical nature of this support, stating, “Energy support is critically necessary for us today to restore what the enemy has destroyed.”

Pritzker wrote on X that she discussed Ukraine’s recovery and the increase of private investments in the country with Shmyhal.

Great to see @Denys_Shmyhal. We discussed ways to further boost Ukraine’s economic recovery and increase private sector investment. pic.twitter.com/sxyDANmqL8— Special Representative Penny Pritzker (@SpecRepUkraine) July 29, 2024

US Ambassador Bridget Brink emphasized the US dedication to supporting Ukraine’s self-determined future. She highlighted that transparency in business practices and a robust legal framework are crucial elements for Ukraine’s economic recovery and its progress towards European Union and NATO membership.

A warm welcome back to Kyiv, @SpecRepUkraine! Joined by CEOs from @amentum_corp, @bobclarkbeyond, & @WECNuclear, we are committed to enabling Ukraine to build its own future. A transparent business environment & strong rule of law are key to Ukraine’s recovery and its EU path. pic.twitter.com/bbXqMC8fLX— Ambassador Bridget A. Brink (@USAmbKyiv) July 29, 2024

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