The US Treasury Department stated on Wednesday that it has transferred $1.3 billion in economic help to Ukraine as part of the initial $7.5 billion pledged to Kyiv by the Biden administration in May.
Treasury Secretary Janet Yellen said in a statement that “with this delivery of economic assistance, we reaffirm our steadfast support to the people of Ukraine as they fight themselves against Putin’s war of aggression and work to sustain their economy.”
The World Bank will handle the payment, which is a component of the $7.5 billion aid package that President Joe Biden approved in May.
In 2022, the Ukrainian economy could experience a contraction of up to 45% as a result of the war, which started in February when Russia invaded its former Soviet neighbor.
The nation’s inability to borrow money or obtain financing on international markets has led to a budget deficit that is currently expanding by $5 billion every month.
The G7 and the European Union have announced commitments of $29.6 billion in additional funding for Kyiv, with $8.5 billion of it coming from the United States, according to the Treasury Department. Allies have hurried to flood Ukraine with aid.
In order to assist Ukraine in paying its immediate expenses as it coped with “Russia’s aggressive and unlawful invasion,” Washington previously made two payments totaling $500 million through the World Bank in April and May, according to the Treasury.
Since Russia’s incursion, Washington has already given Kyiv more than $6 billion in military hardware.