US to Disburse $4.5 Billion Direct Budget Support for Ukraine

The US Treasury announced on Tuesday that it would disburse $4.5 million to Ukraine in the coming weeks, according to a press release.

“Today, the United States continued to uphold its unwavering commitment to Ukraine with the mobilization of an additional $4.5 billion in grants for direct budget support,” US Treasury Secretary Janet Yellen said in the release.

“These funds will begin disbursing in the coming weeks and help the Government of Ukraine defend against Russia’s illegal war by bolstering economic stability and supporting core government services, including wages for hospital workers, government employees, and teachers as well as social assistance for the elderly and vulnerable.”

She noted that the latest disbursement would bring total US direct budget support to Ukraine to $13 billion, all in grants.

In addition, the US has funneled more than $18.3 billion in military equipment to Ukraine, ranging from medical equipment to small arms and HIMARS rocket artillery. Other NATO allies have donated billions more, much of it ex-Soviet equipment, and received compensation from Washington in return.

The move comes amid news that the US, other Group of Seven (G7) nations, and the European Union have reportedly agreed upon a unilaterally imposed price cap on purchases of Russian petroleum of between $60 and $70 per barrel, which would take effect on December 5.

The cap was proposed in response to continued high crude oil prices in global markets, which have been driven higher as a result of Western responses to the special operation. The US and its allies hoped a boycott would undercut the Russian economy, but Moscow shifted its exports east, instead, and has profited from the higher market prices.

Russian state-owned energy firm Gazprom halted gas pumping to Europe through the Nord Stream 1 pipeline in early September over another imposed price cap, saying it violated the terms of their agreement.

The price caps are part of an effort by the US Treasury to deny Moscow the financial resources to continue its special operation in Ukraine. Other efforts include tightening enforcement of Western sanctions against Russia, particularly against its energy and financial sectors.