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USAID funding freeze shocks Ukraine

2025-02-07 08:44:00, Kosova & Bota CNA

A charity in Ukraine that has been working with war veterans and their families has announced that it will suspend its work due to its dependence on funds from the United States Agency for International Development (USAID).

And she's not alone. Across the country, businesses and non-governmental groups are facing great difficulties as their budgets have been significantly reduced.

"I am doing everything to preserve the team," Natalia Parkhitko, acting director of the charity Dostupno, said in several responses to Radio Free Europe/Radio Liberty's Ukrainian Service.

"The news was shocking."

US President Donald Trump has crippled the work of USAID when he ordered a 90-day suspension of this organization's spending, effective January 24.

On February 3, workers were denied entry to the Washington offices, and staff are being pulled out of foreign countries.

Contractors have been laid off or are on mandatory furlough, prompting thousands of people to join protests in Washington.

USAID is the U.S. government's primary agency for administering civilian aid and development assistance worldwide. The organization has a presence in over 100 countries, disbursing billions of dollars in funding annually, and has over 10,000 employees worldwide.

The Trump administration has criticized USAID programs as inefficient and out of line with American interests, arguing that some of the agency's functions will be managed by the U.S. State Department. Even critics have acknowledged that some social and cultural programs funded by USAID have not been in line with its original mission.

Dostupno has worked for years on issues related to access for people with special needs in public spaces.

This category of society has only grown since the start of Russia's war in Ukraine in 2022.

Among the organization's activities is providing assistance to wounded soldiers to return to daily life, through psychological support, and other benefits for people with special needs.

Parkhitko said the group is looking for alternatives and hopes to generate additional funds through public appeals.

"We don't even dare to think that Dostupno will close all projects and stop working. Despite the suspension of funds, we will continue our activities," she said.

Currently, Dostupno cannot pay staff salaries.

Since 2022, USAID has allocated billions of dollars to Ukraine in humanitarian aid, development assistance, and direct support to the state budget. The agricultural sector has benefited the most in Ukraine.

USAID has said that since 2022 it has assisted a third of Ukrainian farmers, helping them with seeds, fertilizers and pesticides and financing their requirements.

One of the recipients of the aid is the All-Ukrainian Agrarian Council, a non-governmental organization that supports farmers and advocates for agricultural reform.

Its head, Andriy Dykun, told Radio Free Europe that USAID's support is vital for small and medium-sized organizations dealing with agriculture in the occupied regions, or those that have been liberated from occupation, in order to return to working the land.

"For example, bags for storing grain, fertilizer, seeds. With the support of USAID, agricultural land reform has also begun to be implemented, and we are now supporting farmers to create associations for water use," he said.

"Grants, advisory services, and legal support – all of these have significantly helped Ukrainian farmers," Dykun said.

This situation is also affecting the Ukrainian Government, as its budget has been affected in the Ministries of Energy, Health, Education, local municipalities, and other state agencies.

Ukrainian MP Inna Sovsun said that in September last year alone, USAID allocated $325 million to help the energy sector, which has been repeatedly hit by Russian bombs.

"We will not comment now, until we study all the details. Perhaps USAID can provide you with more information," the Ministry of Energy said in several written responses to Radio Free Europe.

The USAID office in Ukraine has not told Radio Free Europe which programs will be suspended.

"USAID's assistance has completely changed the situation, has impacted the lives of hundreds of thousands of Ukrainians, has set new standards for the slow state machinery," said Vladyslav Sodel, a photographer who has documented USAID's work for eight years.

He said he was very surprised when he realized the variety of projects that were funded by the agency.

"Starting from a bed with a mattress, then to refugee shelters, to injections worth billions of dollars for the stability of our energy networks." /REL