USAID experts have started an audit of foreign aid to Ukraine

The U.S. federal government agency USAID has suspended funding for all programs and projects in Ukraine for 90 days. This is related to the execution of a directive from the U.S. Department of State regarding the audit of foreign aid.

It has been reported that Ukrainian organizations and local government bodies are receiving notifications about the need to halt the implementation of projects funded by USAID or organizations dependent on American funding. In turn, employees of the Ukrainian representation of the Agency do not have detailed instructions on how to implement the directive. 

Currently, participants in Ukraine's agricultural market have already confirmed the suspension of USAID funding. For instance, regarding the suspension of funding for one grain trading company that was expecting to win a grant for the acquisition of equipment, USAID managers informed them a day before the media release of this news. Another processor, who won a grant for expanding capacity and received the first tranche, was also told that funding had been suspended. The contact persons from USAID with whom the processor communicated did not provide more information, as they themselves do not have it.

“Now we will inform each partner that we will postpone making final decisions and signing final documents concerning specific projects, even those that had been funded. Those fundings that had not been fully financed under current projects are also put on hold. So it is probably important to communicate correctly — we need to be patient and wait. The situation will become clearer week by week,” said representatives from the Ukrainian office of USAID.

According to Alexander Bondarenko, managing partner of the Bureau of Investment Programs, USAID will resume funding of projects in Ukraine after 90 days. He noted that funding for Egypt and Israel has not been suspended. After the resumption of funding, there may be adjustments to the programs. 

It should be recalled that the U.S. Department of State issued an order on January 24 for the "cessation of operations" for all existing foreign aid and suspended new aid. Currently, USAID supports projects in over 100 countries worldwide, including Ukraine — rebuilding schools, providing medical services, repairing critical energy systems. Since the beginning of the full-scale invasion, USAID has allocated $2.6 billion for humanitarian aid, $5 billion for development, and $30 billion has been provided in the form of direct budget support. The agency has also organized projects such as "Economic Support to Ukraine," USAID AGRO, and USAID Harvest.