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Ukraine secures preliminary deals to replace USAID funding for critical projects, official says

by Tim Zadorozhnyy and Kateryna Denisova February 7, 2025 4:13 PM 2 min read

Deputy Prime Minister Olha Stefanishyna attends the Congress of Local and Regional Authorities under the President of Ukraine in Kropyvnytskyi, Ukraine on Aug. 20, 2024. (Kirill Chubotin/Ukrinform/Future Publishing via Getty Images)

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Ukraine is working to secure alternative funding sources for critical programs previously supported by the U.S. Agency for International Development (USAID) and has already reached preliminary agreements on some, Deputy Prime Minister and Justice Minister Olha Stefanishyna said on Feb. 7.

"The negotiations are ongoing. Ministers in the Ukrainian government have held meetings on critical programs — Energy, Infrastructure, Digital Transformation, and Justice Ministries," she said at a conference attended by the Kyiv Independent.

Stefanishyna emphasized that urgent funding has already been identified for recovery efforts, energy resilience, and cyber defense projects.

She also noted that the European Commission and Group of Seven (G7) countries are expected to announce a decision on resuming the work of commissions responsible for appointing key members of Ukraine's judiciary and anti-corruption institutions in the coming days.

Due to the suspension of USAID's operations in Ukraine, several commissions involved in judicial selections have either halted work or faced operational issues.

"As far as I know, the contracts have been terminated, and we must reassemble this puzzle," Stefanishyna said, stressing the need for international partners to uphold their joint responsibility in supporting Ukraine's reforms.

USAID has funded a wide range of initiatives in Ukraine, from energy security to civil society development. U.S. President Donald Trump ordered a 90-day freeze on all foreign assistance upon taking office, effectively halting USAID-funded programs worldwide.

Trump's administration is reportedly planning to eliminate most positions at USAID, The New York Times reported on Feb. 6, citing sources familiar with the matter.

U.S. Secretary of State Marco Rubio, whom Trump appointed as acting administrator of USAID, reiterated on Feb. 4 that U.S. foreign aid must serve American interests rather than function as "charity."

Billionaire Elon Musk, now head of the Department of Government Effectiveness (DOGE), has called USAID "a criminal organization" and claimed on Feb. 3 that Trump agreed to shut it down.

Authors: Tim Zadorozhnyy, Kateryna Denisova

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