US calls for $12bn in additional funding for Ukraine
The heads of several U.S. departments have called to approve the additional financing for Ukraine's security needs
The headsof several U.S. departments have called on Congress to approve additionalfunding for budgetary support to Ukraine in the total amount of $11.8 billion.
This wasstated in a letterpublished on Tuesday, November 7, signed by U.S. Secretary of the TreasuryJanet Yellen, U.S. Secretary of Defense Lloyd Austin, U.S. Secretary of StateAnthony Blinken, and the Director of the U.S. Agency for International DevelopmentSamantha Power.
"Financialsupport for Ukraine is inextricably linked to its success on the battlefield.Therefore, we strongly urge you to provide Ukraine with $11.8 billion in directbudgetary support," the letter states.
These fundsare part of U.S. President Joe Biden's request for additional financing forUkraine's security needs in the amount of $61.4 billion.
At the sametime, the authors of the letter note that thanks to assistance to Ukraine fromother partners, the White House is requesting less funding for budgetarysupport to Kyiv in the 2024 fiscal year than in 2023, when $14.4 billion wasallocated. It is emphasized that direct budgetary support from the UnitedStates is necessary to maintain Ukraine's access to IMF financing in the amountof $15.6 billion, which "can only be continued if donors jointly meet theneeds".
The letteralso mentions an increase in financial activity by U.S. allies and partners,but it is noted that funding from others cannot compensate for the large gap thatwill quickly emerge if the United States fails to fulfill its obligations.
However,officials reported that Canada and the EU are currently providing moreassistance to Ukraine than the United States, when measured as a percentage ofGDP. The White House also added that in 2024, three-quarters of Ukraine'seconomic support will come from sources other than the United States.
All tax revenues are going towardsthe war
Inaddition, the letter asserts that without adequate and timely direct budgetarysupport, Ukraine will be unable to defend itself and prevent further Russianaggression against NATO countries. It is noted that Ukraine has significantlyreduced its expenses, and now all tax revenues are being directed towardsmilitary expenses. This makes Ukraine entirely dependent on external support.
"Budgetarysupport has allowed Ukraine to continue providing essential services-paying teachers' salaries, maintaining hospitals and schools—whiledirecting all its domestic resources towards the fight," the letterstates.
U.S.officials also emphasized Ukraine's accountability in the use of budgetarysupport. The letter notes that direct budgetary support to Ukraine is backed byan unprecedented level of strict control and transparency and will depend onnecessary reforms being carried out by Kyiv.
Recall thatin October, U.S. President Joe Biden requestedan additional funding package of $106 billion from Congress. Of thisamount, $61.3 billion is planned to be provided for weapons supplies toUkraine, and $14.3 billion for military aid to Israel.
However, onNovember 2, the House of Representatives approved an alternative bill proposedby the newly elected Speaker Mike Johnson, which provides assistance of $14.3billion exclusively to Israel, without Ukraine.
The WhiteHouse is resolutely defending Biden's aid package and has promised to veto MikeJohnson's package in the Senate.