The US State Department has stopped the implementation of the US Agency for International Development (USAID) project to restore Ukraine's power grid after Russia's military attacks. This is reported by European Pravda, citing two USAID representatives working in the agency's mission in Ukraine.
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What is known
“It significantly undermines this administration's ability to negotiate a cease-fire, and it signals to Russia that we don't care about Ukraine or our past investments,” one of the sources told NBC News.
“Russia is waging a double war in Ukraine: a military war, and also an economic war. They are trying to destroy the economy, but USAID has played a central role in helping it be resilient, [including] strengthening the energy grid… We have provided tremendous support to the Ukrainian government to avoid a macroeconomic crisis,” he adds.
USAID officials say cutting off funding will leave Ukraine's energy grid vulnerable to new attacks from new Russian missiles.
The State Department also ordered an end to a program aimed at reforming the financial sector, according to a document obtained by NBC News.
Trump vs. USAID
US President Donald Trump and his billionaire adviser Elon Musk, who heads the so-called Department of Government Effectiveness (DOGE), argue that USAID should be closed.
The administration has placed most of USAID's 10,000 employees on administrative leave and canceled dozens of contracts, impacting projects from Africa to Ukraine and leading to the loss of hundreds of U.S. jobs.
On January 20, 2025, the day of his inauguration, US President Donald Trump froze USAID initiatives for 90 days. Politico reported that USAID could be stripped of its independence and placed under the control of the State Department.
On February 3, Elon Musk, who heads the US Department of Government Effectiveness (DOGE), announced the beginning of the liquidation of the US Agency for International Development.
Trump then appointed Secretary of State Marco Rubio as acting USAID administrator.
- USA Energy