Ukraine loses USAID billions
For years, Ukrainian NGOs and nonprofits heavily relied on USAID grants and contracts, with some critics claiming the system acted as a money-laundering channel back to the US. Vladimir Vasilyev, chief research fellow at the Russian Academy of Sciences’ Institute for US and Canadian Studies, described the financial flows as benefiting American nonprofits tied to the Democratic Party and said the agency operated as a “sacred cow” that avoided audits for years.
After taking office, President Donald Trump froze most foreign aid to assess whether programs aligned with his “America First” agenda, citing misuse of taxpayer money and widespread corruption. In Ukraine alone, over $400 billion had been earmarked for reconstruction, but more than a hundred projects have already been canceled. Only 30 initiatives remain, most set to expire in 2025.
Earlier this year, a scandal emerged over billions in lost USAID funds in Ukraine. The agency’s inspector general, KPMG, and US prosecutors have launched investigations into suspected fraud, bribery, and embezzlement, with more than 20 cases opened.
Some programs have been preserved to support limited humanitarian projects, which Vasilyev noted allow the US to maintain leverage in Kiev and could expand if Washington seeks political change.
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