The US International Development Agency ( USAID ) has suspended the implementation of its assistance for 90 days . This decision was made after the relevant resolution of the US Department of State .
According to the Parliamentary Committee on Humanitarian and Information Policy, after the start of a full -scale invasion of USAID in Ukraine provided $ 2.6 billion in humanitarian aid, $ 5 billion for development and another $ 30 billion in the form of direct budget support. And despite the fact that in the Ukrainian segment of social networks, most of the public associations are discussed, IDPs, energy and small and medium -sized businesses are now being affected.
One of the influences of this assistance on Ukrainian GDP is that a considerable part of the funds were allocated not for wages to the participants of grant projects, but on economic development. For example, programs for supporting agrarians, demining, restoration of certain types of production after Russian shelling (it is about repair and purchase of various equipment), or, if necessary, the relaxation of such industries ...
The state does not always help in such cases. But from the discussions that have recently unfolded on social networks, we can conclude that not only ordinary citizens but also Ukrainian officials do not know about it.
That is, a lot in the country is being done at the expense of the American people, at the expense of the same USAID, but in general it seems that the state of Ukraine is allegedly doing.
What should be understood about USAID Suside Suspension?
First, it is immediately felt by people who directly received humanitarian aid. That is, for IDPs, which simply will not be able to buy bread, it was critical. But I hope that this segment will be restored in advance without waiting for those 90 days. As far as I know, for example, programs that are related to the purchase of medicines (vital humanitarian aid projects) will not be stopped. That is, there is an exception.
The USAID programs will also be noticeable for part of Ukrainians who will lose their work. This does not mean that they will be left without means of existence, but they will not go to the stores. And this, in turn, will reduce (though not critical) trade volumes.
Secondly, international assistance is foreign exchange revenues to Ukraine. And the absence of some part of the funds can unbalance our currency, it is an impact on our balance of payments (but this is a matter of the National Bank). However, it should be remembered that now a significant amount of Ukraine is allocated by Europeans.
That is, the devaluation of the hryvnia is possible, it should be understood, but the influence would be very worse if there was no help at all, and if it was not during 2025. Fortunately, this is not about it.
Third, reducing USAID projects will affect prices for various products in Ukraine. That is, it is not something ephemeral, but direct influence. For example, a demining program stop means that no replaced field will be processed, that is, it will not be harvested. Or another example: if earlier an entrepreneur engaged in agriculture, for the purchase of equipment for harvesting or for its processing could receive a grant, now he will have to go for a loan. That is, either an entrepreneur, given the risks, will not produce products at all, or the cost of the final product will be rated with a percentage that he or she will have to return the financial institution. Thus, the goods on the shelves of our stores are hatched. And it will touch each Ukrainian directly ...
Therefore, summarizing, on the one hand, three months for USAID assistance is not a disaster. As for me, it will simply lead to some new requests. On the other hand, the President of Ukraine stated that the state would compensate for certain losses on individual programs. But this is a lot of money, and I do not know where our government will take them in terms of limited financing.
Ilya Neskhodovsky, economist, head of the analytical direction of the ANTS network
