FX.co ★ US to give Ukraine another $ 500 to keep government running

According to US Treasury Secretary Janet Yellen, the United States will give Ukraine another $500 million to help its government continue critical government operations, doubling the $500 million aid pledge by President Joe Biden in March.

Yellen told a news conference that she shared the aid plans during a meeting with Ukrainian Prime Minister Denys Shmyhal on Thursday.

Yellen said that the needs of Ukraine were urgent and the US planned to deploy that aid to Ukraine as soon as possible. She added that this was only the beginning of what Ukraine would need to rebuild. Moreover, the US officials are determined to work with Congress and their international allies and partners on this support in the long term.

The new aid will help Ukraine pay government salaries, pensions and fund the social programs necessary to prevent a worsening of the humanitarian crisis.

Yellen said that the $1 billion in direct aid would require the Biden administration to make a supplemental budget request to Congress, and she was committed to asking lawmakers for further help for Ukraine.

Yellen stated that the US was obligated to find ways to meet Ukraine's needs.

Currently, Ukrainian Prime Minister Denys Shmyhal is in Washington to attend the International Monetary Fund and the World Bank spring meetings. He is also due to meet with Defense Secretary Lloyd Austin and House of Representatives Speaker Nancy Pelosi.

Later, he is due to address an event hosted by the World Bank about Ukraine's financing needs.

IMF Managing Director Kristalina Georgieva said that the Ukrainian government estimated that the country needed $5 billion in aid per month to keep its economy operating effectively. The immediate priority was filling that gap for over the next three months.

Last week, the World Bank estimated that half of Ukraine's businesses were closed, the rest were operating at well below capacity and its GDP would collapse by 45% in 2022.

The Treasury official's statement came after G7 finance ministers announced on Wednesday that they had provided and pledged additional support to Ukraine exceeding $24 billion for 2022 and beyond, and vowed to do more as needed.

International aid to Ukraine between 2014 and 2021 exceeded $60 billion, the Treasury official said.