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Foreign Aid to Ukraine

Foreign Aid to UkraineUkraine has been at war with Russia since February 24, 2022, yet it remains resilient. Foreign aid to Ukraine has become a crucial lifeline, extending crucial humanitarian, economic and military support to the nation. The largest contributors to foreign assistance to Ukraine are European Union (EU) institutions, the United States (U.S.), Germany and the United Kingdom (U.K.).

Humanitarian Aid

Humanitarian aid is an incredibly important resource that serves as a crisis response to poverty and disease. It helps save lives and often provides the most basic needs to survive, such as housing, food and medical supplies. Currently, more than 40% of the Ukrainian population (14.6 million people) are in need of humanitarian aid in 2024. However, with the collective aid efforts directed toward Ukraine, millions can access vital necessities, including water, food, cooking fuel, heating for homes and health care services.

The U.S. has sent $1.6 billion in humanitarian aid to Ukraine to cover health care, emergency food assistance and refugee support. Additionally, the U.S. government offers family reunification support to Ukrainians who have been separated from their loved ones. The war has also caused significant destruction to public utilities. In response, the United States Agency for International Development (USAID) and the United Nations Children’s Fund (UNICEF) have provided:

  • 7.6 million Ukrainians with additional health assistance (health care supplies, medicine etc.)
  • Helped 620,000 people with food insecurity. 
  • Supported nearly 4.7 million people in 2022 with the WASH (Water, Sanitation and Hygiene) program to help prevent waterborne diseases.

Economic Aid

In February 2024, the Rapid Damage and Needs Assessment (RDNA3) revealed that it would cost approximately $486 billion for Ukraine to recover from the destruction of war in the next decade. The most important needs consist of housing, transport and commercial industries. Ukraine’s government feels the financial burden not only on its citizens but also on the country. Currently, social assistance is being used to combat economic distress due to a 15.9% rise in inflation in 2022 and low earnings from a lack of available jobs. Additionally, the Ukrainian government is capping the cost of energy and reducing the price of public transport to help households and businesses.

Loans, grants and technical assistance are the most common ways for countries to send economic aid. An example of financial aid comes from The European Investment Bank (EIB). In July 2023, the “EU for Ukraine” initiative was passed to finance an approximately $2 billion recovery effort that included transport, renewable energy and corporate innovation. Foreign aid to Ukraine will help contribute to Ukraine’s long-term stability, financial dependence and economic growth in the aftermath of conflict.

Military Aid

The U.S. currently provides the largest amount of military aid to Ukraine, totaling $46.3 billion. Military assistance includes weapons, logistics support, training and additional grants and loans. On March 12, 2024, the U.S. announced that it would send a new military aid package worth about $300 million to Ukraine. This is the first aid package from the U.S. since December 2023. Further, Denmark will be providing $336.6 million, which includes artillery systems and ammunition. The EU is also set to agree to a $5.46 billion fund to help with military finances.

While the main objective of such aid is to support Ukraine’s military and deter further hostility from Russia, its implications extend beyond that. Investments in defense contribute to economic growth and poverty reduction by creating stability and national security. Helping Ukraine defend itself helps prevent further destabilization of social welfare systems such as educational institutions, pensions, social assistance and housing.

Conclusion

Foreign aid to Ukraine plays a crucial role in its success against Russia. Despite major contributions from multiple nations, it’s evident that the current foreign aid assistance is falling short. Nonetheless, there remains hope that Ukraine will emerge stronger than before. With continued solidarity and collaboration, Ukraine will be able to succeed in its journey toward independence.

– Gabrielle Schwartz
Photo: Flickr