USAID Halted Funding for Ukraine's Energy Sector: What It Means.

USAID has terminated funding for the Ukraine Energy Support Fund amounting to $75 million

The Ukraine Energy Support Fund was established through the joint efforts of Ukraine's Energy Minister Herman Halushchenko and the European Commissioner for Energy Kadri Simson. According to an official statement published on the Energy Community Secretariat's website,

USAID notified about the termination of a grant agreement worth $75 million, which was concluded in 2023 and 2024.

The Energy Community Secretariat expressed concern that the cessation of funding will significantly limit the possibilities for purchasing equipment for Ukraine's energy sector. In particular,

a contract worth $25 million for the acquisition of important energy equipment was concluded in 2023, and in 2024 USAID committed to provide another $50 million.

Despite this, Ukraine's Prime Minister Denys Shmyhal stated that some projects previously funded through the USAID program have been replaced with other sources. However, he acknowledged that the cessation of aid has led to the loss of several important projects for Ukraine.

Energy expert Olga Babiy emphasizes that the cessation of media support from USAID creates certain problems, but they can be addressed by seeking alternative sources of funding. For example, the possibility of purchasing already ordered equipment. A contract has been concluded for the procurement of a significant amount of equipment, some of which has already been delivered to Ukraine.