US to provide additional $4.5 billion to keep Ukrainian government operating

The U.S. is sending out an additional $4.5 billion in aid to the government of Ukraine, bringing the total amount of budgetary support to the country since it was invaded by Russia to $8.5 billion, the Treasury Department said Monday.

The funds will help keep the Ukrainian government afloat as it seeks to withstand the large-scale Russian military campaign that’s now approaching its sixth month. The first payment of $3 billion from the $4.5 billion is scheduled to go out later this month.

The Treasury will administer the funds along with the U.S. Agency for International Development and the money will go to essential services like paying government salaries, keeping hospitals and schools operating, and distributing humanitarian supplies.

Treasury Secretary Janet Yellen said in a statement that the announcement shows President Biden’s commitment to Ukraine, “including through $8.5 billion in budgetary support which is helping Ukraine’s government keep hospitals, schools, and other critical government services for the people of Ukraine.”

The department said there were mechanisms in place to make sure that the funding, which was approved by Congress, would be used only for its intended purposes. 

“Robust safeguards put in place by the World Bank, coupled with U.S.-funded, expert third-party oversight embedded within the Ukrainian government, ensure accountability and transparency in the use of these funds,” the Treasury said in a statement.

The $4.5 billion represents the fifth disbursement from the U.S. directly to the Ukrainian government budget. The U.S. sent $1 billion through the World Bank in April and May, $1.3 billion in June, and another $1.7 billion in July.

The Treasury is also releasing $335 million to the European Bank for Reconstruction and Development to help with Ukraine’s energy and food security as part of the country’s efforts to rebuild from the war.

The money will go to supporting infrastructure in transport and logistics as well as some direct financing for the agricultural sector and exporters. It will also go to cities and towns that are dealing with issues related to internally displaced persons and other vulnerable populations. 

Monday’s announcement from the Treasury came the same day as the Department of Defense said the U.S. would send an additional $1 billion “to meet Ukraine’s critical security and defense needs” in the form of additional ammunition, weapons and equipment to be sent to Ukraine.

The defense package included mortars, javelin missile systems, Claymore anti-personnel mines, artillery ammunition, ammunition for artillery rocket systems, surface-to-air missile munitions, C-4 explosives, and medical supplies, according to the Pentagon.