Diplomacy

USAID terminates its contribution agreement to the Ukraine Energy Support Fund

USAID terminates its contribution agreement to the Ukraine Energy Support Fund
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The United States Agency for International Development (USAID) has notified the Energy Community Secretariat of the termination of the grant agreement for the Ukraine Energy Support Fund, totaling $75 million.

This was reported by the Energy Community.

"The Energy Community Secretariat has acknowledged receipt of this notification and is currently awaiting further clarification from USAID. The termination of this grant will reduce the available funds for procuring essential equipment for Ukraine’s energy sector," the statement reads.

It is noted that the letter from USAID was received on February 27.

The original agreement, signed in 2023 for USD 25 million, aimed to support the procurement of critical energy equipment for Ukraine’s energy and heating sectors, including winterisation projects. In 2024, USAID pledged an additional USD 50 million to the Fund, extending the support under the original agreement.

As previously reported, on January 20, U.S. President Donald Trump signed an executive order suspending all foreign aid programs for 90 days pending a review to determine whether they align with his policy objectives.

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