A huge envelope. The elected members of the American House of Representatives adopted a new budget on Wednesday evening which provides nearly 14 billion dollars for the crisis in Ukraine. The text includes an economic component, but also arms and ammunition for Kiev.
These funds should allow Ukraine to protect its electricity network, fight cyberattacks and equip itself with defensive weapons. The budget also provides over $2.6 billion in humanitarian assistance and over $1 billion to support people fleeing Ukraine. More than 6.5 billion will be intended for the Pentagon, in particular to finance the deployment of troops in the region. Finally, funds are allocated to finance the response against Moscow, starting with sanctions against Russian oligarchs.
This aid intended for Kiev was attached to the American federal budget for the year 2022, that is to say 1,500 billion dollars of expenditure which the senators must still endorse. The text must be voted on in the Senate before being promulgated by Joe Biden.
Act “very quickly”
“We will continue to support the courageous people of Ukraine who are fighting for their country”, assured Joe Biden on Twitter, while the leader of the Democrats in the Senate, Chuck Schumer, urged the American Congress to act “very quickly” on this case. “Ukrainians lack food, clothing, shelter, electricity and medicine,” he said. A rare occurrence in the US Congress, both Democrats and Republicans support these measures, several elected officials having also urged Joe Biden to strengthen his aid to Ukraine.
At the same time, the elected members of the House of Representatives also voted on a ban on importing Russian energy, while Joe Biden had announced an embargo on these materials by decree on Tuesday. The congressional bill also requires the United States to encourage Russia’s suspension from the World Trade Organization (WTO).
IMF emergency assistance
The International Monetary Fund (IMF) has also approved emergency aid for Kyiv. It provides an envelope of 1.4 billion dollars for the country, “faced with a very serious humanitarian and ecological crisis” since the invasion of Russia. “Financing needs are large, urgent and could increase significantly as the war continues,” said the Managing Director of the IMF.
Kristalina Georgieva also warned that Ukraine, which was already benefiting from an IMF aid program, was going to experience a “deep recession” this year. Before the war, the Washington institution was counting on a growth of the Ukrainian economy of 3.6% this year. The emergency aid should enable the government to “meet urgent balance of payments needs resulting from the effects of the war and will provide essential short-term support,” the IMF said.
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