Business news from Ukraine

Cabinet of Ministers approves agreement with US on $7.85 bln in aid to Ukrainian budget

30 May , 2024  

At a meeting on Thursday, the Cabinet of Ministers approved an intergovernmental agreement with the United States to raise $7.849 billion in economic aid for the Ukrainian budget.

“Today we are approving a draft agreement between Ukraine and the United States, which will allow Ukraine to receive about $7.9 billion in financial and economic support. These are funds under the new US aid package that will be allocated to the Ukrainian budget,” Shmyhal said at a government meeting.

According to the text of the agreement, published in Telegram by MP Yaroslav Zheleznyak, another $50 million will be allocated to prevent and respond to food insecurity, but the list of recipient countries will be determined later.

In addition, Ukraine may be among the countries that will receive another $1.575 million in economic assistance.

It is noted that the United States provides funds on an interest-free loan with the condition of repayment in one payment 40 years after September 30, 2025. At the same time, the agreement provides for the possibility of writing off part or all of this debt by the US President: after November 15, 2024, up to 50% of the loan may be canceled, and after January 1, 2026, the entire amount of debt may be canceled.