The U.S. State Department has officially ended a major initiative through the U.S. Agency for International Development (USAID) that had funneled hundreds of millions of dollars into Ukraine to help restore the country’s energy grid.
Two USAID officials working on the Ukraine mission confirmed the decision to NBC News this week. One official warned that the move could significantly weaken the administration’s ability to negotiate a ceasefire and send a troubling message to Russia.
“It significantly undercuts this administration’s abilities to negotiate on the ceasefire, and it’d signal to Russia that we don’t care about Ukraine or our past investments,” the official stated.
According to USAID personnel, Russia is waging a dual war against Ukraine—one military and one economic. The official emphasized that targeting Ukraine’s economy is a key strategy for Russia, and U.S. aid has played a critical role in keeping Ukraine’s financial system afloat.
“Russia is fighting a two-pronged war in Ukraine: a military one but also an economic one,” the official explained. “They’re trying to crush the economy, but USAID has played a central role in helping it be resilient, including shoring up the energy grid. We’ve provided vast amounts of support to the Ukrainian government to avoid a macroeconomic crisis.”
By halting this initiative, critics argue the U.S. may be weakening Ukraine’s ability to withstand further Russian economic pressure. The decision could also have broader implications for international confidence in ongoing U.S. commitments to supporting Ukraine.
In addition to cutting energy aid, the U.S. is also dramatically reducing its USAID personnel in Ukraine. The number of American government employees and contractors working in the country will drop from 64 to just eight.
This drastic downsizing suggests a significant shift in U.S. involvement on the ground and raises questions about the long-term strategy for aiding Ukraine’s reconstruction and economic stability.
With this decision, the future of U.S. support for Ukraine remains uncertain. Whether additional aid measures will be introduced in other forms is yet to be seen.
This is a developing story. Please check back for updates.