The United States writes off debts and continues to finance Ukraine: key facts and figures (infographic)

And once again, American President Joe Biden is in the focus of the world media, who is in a hurry to implement a set of measures aimed at supporting Ukraine on the eve of the inauguration of the newly elected President Donald Trump.  According to Bloomberg, the Biden Administration reported Congress on the intention to write off 4.65 billion dollars (4.36 billion euros) of Ukraine’s debt. The White House is set to cancel half of the $9 billion (€8.53 billion) loan granted to Ukraine as part of the more than $60 billion (€56.9 billion) emergency aid package approved by Congress in April. The idea of ​​providing this loan was first voiced by Donald Trump during his election campaign, and later became one of the key changes to the bill introduced by Republican leaders in the House of Representatives. At the same time, the Biden administration made it clear even earlier that part of the debt was planned to be forgiven.

Biden is ready to forgive half of Ukraine’s debt

In a letter sent by the State Department to Congress, it is emphasized that writing off part of Ukraine’s debt “is an important step to facilitate the victory of Kyiv” and corresponds to the strategic interests of the United States, as well as its partners in the EU, G7+ and NATO. This decision demonstrates the importance of continuing to support Ukraine as a key ally of the West in countering Russian aggression.

The US Congress passed the Law on additional appropriations for the security of Ukraine in the amount of about 61 billion dollars in April 2024.

According to the terms of this document, economic aid – about 10 billion dollars – is provided to Kyiv not on a free basis, but as a conditional revolving loan. Simultaneously document allows Joe Biden to forgive half of the granted amounts. It states that from November 15, 2024, a week after the US presidential election, the current president can forgive up to 50% of this loan, while the other 50% of the loan can be forgiven on January 1, 2026 by the next president.

The first donor – to the first recipient

Since the start of the full-scale invasion, Ukraine has become the largest recipient of aid in the region. In contrast, the US has historically been the world’s largest donor of foreign aid in absolute terms.   The priorities and geographic distribution of United States foreign aid have changed over time in response to global challenges and strategic interests. It is noteworthy that Americans are sensitive to foreign aid. Sociological surveys show that they overestimate the amount of funds that their country allocates to support other states. It is about a quarter of the American budget. Instead, the realities are different: no more than one percent of the US budget actually goes to help foreign recipients.

What does foreign aid involve?

It is financial support, services or material resources that one country provides to another for the purpose of assistance. Such aid can promote economic development, strengthen social programs, provide support during a crisis, or increase the defense capabilities of the recipient country. For example, in the event of a medical crisis, one country can provide funds to fund hospitals, send medical workers to treat patients, or transfer needed medicines. At the same time, the recipient of aid does not necessarily have to be a low-income country. For example, the US regularly supports countries with a relatively high GDP, such as Israel.

As for Ukraine, the positioning of our country on the US government portal is quite disappointing: we are a country with a lower than average income level.

Infographic: IA “FACT”

Foreign aid is divided into four main categories:

Humanitarian aid. These are materials or resources to support people affected by natural or man-made disasters (war, famine, natural disasters). It is focused on the urgent provision of basic needs.

Development aid. It is aimed at long-term economic development and the creation of stable sources of income, for example, through business or infrastructure support.

Military aid. Includes weapons, funding, training and other resources to strengthen defenses.

Political and economic assistance. Supports political stability, reforms, democratic institutions, peace negotiations, human rights and other strategic initiatives.

The US is the largest donor of foreign aid in the world, having provided more than $4 trillion (adjusted for inflation) since World War II. Although other developed countries spend a larger percentage of GDP on aid, the United States remains the leader in absolute terms. Coordination is carried out by USAID and about 20 other government agencies, such as the Ministry of Defense or the Peace Corps.

Data provided by the government portal The US is witnessing a sharp increase in aid starting in 2022. Aid to Ukraine is provided by a number of US government agencies, each of which is responsible for specific aspects of support.

Which US government agencies help Ukraine?

USAID (United States Agency for International Development) finances programs for the restoration of infrastructure, health care, education and support for vulnerable groups of the population. The US State Department is responsible for political support, financing of programs for democratic reforms, justice and anti-corruption. The State Department provides grants for the restoration of public administration and public organizations.

The US Department of Defense is a major provider of military assistance, including arms transfers, military training and technical support through programs such as the Ukraine Security Assistance Initiative. The U.S. Treasury Department finances macro-financial support for Ukraine through grants and loans and helps stabilize the economy through budget support. Millennium Challenges Corporation (MCC) focuses on long-term economic development and infrastructure projects. The USDA provides food aid and funds agricultural programs, especially in humanitarian crises. The Centers for Disease Control and Prevention (CDC) helps build the health care system and fight infectious diseases. The US Department of Energy contributes to Ukraine’s energy security through the modernization of infrastructure and the restoration of energy facilities damaged during the war. The Peace Corps supports volunteer projects in the fields of education and local development. There is also a category of so-called “other agencies”, through which Ukraine’s aid is also broadcast. In particular, the US Export-Import Bank (EXIM) supports the private sector. And the National Institute of Health funds medical research.

Infographic: AI “FACT” Infographic: IA “FACT”

Biden is determined

It will be recalled that earlier Blinken stated that “Biden is sending aid to ensure support for Ukraine in its fight next year“. It is reported Associated Press.

US Secretary of State Anthony Blinken noted that the Joe Biden administration continues to direct aid to Ukraine to ensure its ability to resist Russian aggression in 2025. He emphasized that these resources should help Kyiv not only maintain its positions, but also be ready for potential changes in the dynamics of hostilities.

“Supporting Ukraine is not only a matter of today, but also a long-term contribution to the stability and security of democratic EuropeBlinken noted during his speech.

Will US support become a decisive factor for the future of Ukraine in the face of constant challenges, and will this assistance continue after a change in political leadership? Questions remain open.