Rada starts consultations with the EU on replacement of USAID aid

29 January 14:56

The Verkhovna Rada Committee on Humanitarian and Information Policy has begun consultations with European colleagues on the possibility of replacing American aid. We are talking about projects funded by USAID. This is stated in a statement by the Committee, Komersant ukrainskyi reports.

The Committee on Humanitarian and Information Policy expressed strong support for further cooperation between Ukraine and the United States Agency for International Development (USAID). Programs implemented through this partnership play a key role in strengthening democratic institutions, developing independent media, and supporting civil society. However, the suspension of U.S. assistance poses serious challenges for Ukraine that require prompt solutions.

The Committee noted that over the years, USAID has supported a number of initiatives in Ukraine, including:

  • Educational and scientific projects that provided youth development and learning opportunities.
  • Cultural programs that promoted the creative self-realization of Ukrainian artists.
  • Media support, especially in the context of the economic crisis in the advertising market after the full-scale invasion of Russia.
  • Psychological assistance to children and families affected by the war.

This assistance was vital, especially given that it was implemented without high-profile advertising by the US government.

Consequences of the funding cutoff

“Unfortunately, the scale of the problems faced by Ukraine and dozens of other countries in connection with the termination of U.S. assistance is much greater than it might seem at first glance,” the Committee said in a statement.

It is noted that Ukrainian organizations that received USAID grants did not have time to prepare for such a drastic reduction in funding.

“Of course, the American people and the government have every right to review the results of this assistance and decide whether to continue their global support. But while the audit is ongoing, Ukraine must take prompt action to avoid destabilizing key processes in the country and to plan its actions in this area in the future,” the MPs said.

What to do next?

Ukraine has already begun consultations with European partners on a possible temporary replacement of American aid. Negotiations are ongoing at the parliamentary level to prevent destabilization of important social and cultural projects.

“At the parliamentary level , consultations have already begun with European colleagues on the possible replacement of American aid – at least until final decisions are made in Washington,” the committee said in a statement.

Probably, due to the pause in project funding, the normalization of aid-related processes may take three, four, five, or even six months.

The MPs emphasized that the suspension of funding is taking place in the context of a rebuff to the aggressor state, including information.

“At a time when every voice is important, and cultural diplomacy and truthful information are integral components of protecting Ukraine’s independence. With limited state funding, grant assistance is sometimes almost the only option for the functioning of projects in the field of culture and media,” the MPs said.

At the same time, USAID remains a strategic partner of Ukraine, and it is hoped that support will be resumed after an audit of program effectiveness.

It should be noted that the President of Ukraine also instructed government officials to report on the currently suspended U.S. support programs and determine which of them are critical and need to be addressed now. According to him, some of this funding can be provided by public funds, while others will be discussed with European and American partners.

What preceded this

The United States suspended funding for all USAID projects in Ukraine for 90 days. IDPs, energy, small business, the Ministry of Digital Transformation, and independent media, including Diya and Suspilne, are under attack.

Last year, USAID allocated more than $5 billion to Ukraine, but all programs are currently on hold. At the same time, according to government officials, the White House’s decision will not affect the state budget or the Ministry of Finance’s expenditures.

Ukrainian organizations and local governments are being notified to suspend their activities. In Mykolaiv, dozens of projects have been put on hold, ranging from energy independence to security projects. Ivona Kostyna, co-founder of Veteran Hub, posted on Facebook that the organization was forced to close the Veterans Support Line and the Hub in Vinnytsia. She called on businesses to support the project.

Stopping funding for USAID projects: what are the positive aspects of the decision?

Member of Parliament and economist Marian Zablotskyi called for the termination of funding for USAID projects.

According to him, there are currently 112 active USAID projects in Ukraine worth $7 billion. However, they have a number of drawbacks. First, according to the politician, they all boil down to endless roundtables and conferences. Secondly, most of these funds remain in the United States as the net profit of private companies implementing these grants.

“Here’s the first vivid example: $297 million for communications for three years. Who from the world of culture knows that we have been allocated the amount of money for filming that would make it possible to make Avatar 3? The Russians allocate exactly the same amount from the state budget for their cinema, and you know that they do not skimp on propaganda,” Zablotsky wrote.

In particular, $297 million was allocated for communications over three years for the following:

  • Support for the creation of a YouTube talk show called “Ebout.”
  • Support for the music band TVORCHI in creating a song and performing at concerts in selected cities of Ukraine.
  • The Zminy NGO, also known as Don’t Take Fake (DTF), is a prominent influencer and supporter of the electronic music scene with a track record of organizing major cultural events, including the first Mirage Camp for electronic musicians. DTF will host an electronic music residency that will bring together creative people to network, collaborate and create new products.
  • Support for the NGO CUKR in organizing a series of cultural events during the summer season in the Dvirik na Kuznechnoi The mural in the Dvirik na Kuznechnoi was created.
  • Support for Film UA in the production of a documentary film called Dough. Research, introductory meetings with the team of TV series creators, a trip to Vienna.
  • Support for Ukrainian producer Tetiana Postavna and media personality Volodymyr Dantes in creating a reality show about the restoration of cultural spaces in frontline settlements and recently liberated areas.
  • Release of the first episode of the CollegeCheck project.
  • Release of the second season of the project “Ukrainian Palaces. Golden Age” project.
Остафійчук Ярослав
Editor