Ukraine situation: The US pumped another 500 million USD for the Ukrainian government to ‘maintain operations’

According to Reuters, Yellen made this statement at a press conference on April 21. The US Treasury secretary also claimed to have shared US aid plans during a meeting with Ukrainian Prime Minister Denys Shmyhal on Thursday of the same day.

“Ukraine’s need is urgent, and we plan to deploy more of this direct aid to Ukraine as soon as possible. We know this is just the beginning of what Ukraine needs to rebuild and I am committed to working with Congress and our international allies and partners to rebuild (Ukraine) on this support over the medium and long term,” Yellen said.

The new aid will help Ukraine pay government members’ salaries, pensions and fund social programs needed to avoid exacerbating the humanitarian crisis after Russia launched a military campaign in October. neighboring country to the southwest.

Yellen said the $1 billion in direct aid would require the Biden administration to submit a request for additional funding to Congress. The US Treasury Secretary has pledged to ask US lawmakers for more help for Ukraine.

“We have to find a way to meet Ukraine’s needs,” Yellen said.

Shmyhal, the Prime Minister of Ukraine, who is in Washington for meetings of the International Monetary Fund and the World Bank, will also meet Defense Secretary Lloyd Austin and Speaker of the House Nancy Pelosi.

He will then speak at an event organized by the World Bank on Ukraine’s financial needs.

IMF Managing Director Kristalina Georgieva said on Wednesday that the Ukrainian government’s estimate that the country needs $5 billion in aid a month to keep the economy afloat seems accurate and favorable. The first step is to fill that gap in the next three months.

The World Bank estimated last week that half of Ukraine’s businesses have closed, the rest are operating below capacity, and that the country’s GDP will shrink by 45% this year due to conflict with Russia.

The statement by the US Treasury official came after the G7 Finance Ministers announced on April 20 that they had provided and pledged additional assistance to Ukraine in excess of $24 billion for 2022 and beyond. more, while also committing to do more if needed.