Ukraine can no longer rely on aid from the U.S., says former ambassador

Former Ukrainian ambassador to the U.S. says Ukraine must consider alternative sources to foreign aid
Former Ukrainian ambassador to the U.S. says Ukraine must consider alternative sources to foreign aid

Ukraine will no longer receive $11.8 billion in budget assistance from the United States in the fall of next year, former Ukrainian ambassador to the U.S., Valeriy Chaliy, said in an exclusive interview with Radio NV.

Ukraine should consider alternative sources, as relying solely on this aid will no longer be feasible.

“Instead of relying on aid from the U.S., Ukraine needs to develop international strategies,” Chaliy said.

“The country cannot sustain itself indefinitely with only 30% of the gross domestic product compensated. There needs to be a pragmatic approach to creating jobs and ensuring social welfare.”

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Chaliy acknowledged Ukraine's dependence on foreign aid and expressed concerns about potential difficulties if the expected $11.8 billion from the U.S. does not materialize. Planning for a scenario without such financial assistance is essential.

Regarding the national budget for 2024, Chaliy underscored the significance of exploring internal resources, particularly as 60% of Ukraine's expenditures are external. He warned that, come next September, the country won't receive the same level of external funds.

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Chaliy was confident, though, that by summer 2024, the situation would stabilize.

Ukraine’s parliament adopted the 2024 budget on Nov. 9, featuring adjustments to key figures. Total revenues increased to UAH 1.768 trillion, while expenditures remain nearly the same at UAH 3.35 trillion. The state budget deficit was reduced to UAH 1.57 trillion, and external borrowings were estimated at $41 billion. The real GDP growth forecast was set at 4.6%, with an inflation forecast of 9.7%, and an average exchange rate of 40.7 UAH per USD for the year.

Concerning external financing sources, Finance Minister Serhiy Marchenko stated that Ukraine relies on $5.4 billion from the IMF, $8.5 billion from the U.S., and $18 billion from the EU. The remaining $9.1 billion from the budget is expected to be negotiated with the governments of Canada, Norway, Japan, South Korea, and the World Bank.

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