U.S. Agency for International Development USAID Administrator Samantha Power condemned Russia’s decision to suspend participation in the “grain initiative” and announced $250 million in support for Ukraine’s agriculture sector, which has suffered as a result of Russia’s full-scale invasion, USAID said.
“The United States is providing this assistance because of its Agriculture Sustainability Initiative-Ukraine (AGRI-Ukraine). In total, the U.S. government has already directed $350 million to the initiative. The agency plans to engage the private sector, other donors and foundations to raise an additional $250 million,” the USAID press office quoted Power as saying during a visit to the Port of Odessa on Tuesday.
The additional funds will be used to expand critical agricultural infrastructure, including irrigation systems, grain elevators, transloading facilities, and port and border infrastructure.
In addition, USAID will expand support to small and medium-sized agricultural businesses so that they have access to financing and resources to plan for planting and harvesting in 2023.
The agency noted that the Russian full-scale invasion has caused more than $6.6 billion in direct damage to Ukraine’s agricultural sector.
“AGRI-Ukraine will continue to help Ukraine’s farmers produce, store, and export agricultural products and grain to the world,” USAID assured.
The AGRI-Ukraine initiative was launched in July 2022 and supports more than 30% of Ukraine’s registered farmers. Thus, the U.S. provides seeds, fertilizers, agricultural and financial services and storage.
Thanks to USAID support, farmers were able to store more than 843,000 tons of grain, and more than 600 farmers received nearly $49.8 million.
International companies such as Bayer, Grain Alliance, Kernel, and Nibulon are investing in programs to support Ukraine’s agricultural sector. The World Bank has also joined AGRI-Ukraine in financing reforms in the sector.
