US contributes $500 million to European Bank to support Ukraine & nations affected by war

As Kyiv continues to put forth tough resilience against the Kremlin's troops, the United States has committed to allocate $500 million to the European Bank for the Reconstruction and Development (EBRD) to help companies and public services disrupted by Russia's war in Ukraine. According to a press release from the US Department of the Treasury, this pledge will also support other nations affected by the war.  

This came after Alexia Latortue, the Assistant Secretary for International Trade and Development, took part in a "virtual signing ceremony" on Wednesday with Odile Renaud-Basso, the President of the EBRD, for the $500 million US contribution to the EBRD, the release revealed.  

According to the release, this funding will support the immediate crisis response, primarily in Ukraine, and would further go toward meeting the following needs, like, energy security requirements, food security, and assistance for vulnerable populations as well as internally displaced people. It will also help fund vital infrastructure in the areas of transportation and logistics. 

US aid to Ukraine

In addition to this, through risk-sharing mechanisms and the mobilisation of other donors, this US contribution will generate nearly $1 billion in EBRD investments that will aid in the restoration of economic activity. Additionally, technical assistance grants will be supported by this financing, which will also be used to promote small and medium-sized firms, enhance the business climate, and lower the risk of energy and food poverty. 

According to Assistant Secretary Latortue, “This contribution reaffirms our support for the people of Ukraine as they defend their country from Russia’s unprovoked and unjustifiable war,” the release stated. Latortue even added, “It is a signal of our solidarity with countries affected by Putin’s war of choice, which has increased food insecurity and raised energy prices around the world, particularly in developing countries.” 

Furthermore, this donation is a component of the $40 billion aid package for Ukraine that US President Joe Biden signed into law in May. In addition to the statement made on Wednesday, Washington has already disbursed $4 billion of its $8.5 billion commitment to the Ukrainian government and people in the form of financial support and economic aid. 

Meanwhile, US Secretary of Defense Lloyd Austin and Ukrainian Defense Minister Alexey Reznikov recently spoke on the phone about military aid to Ukraine in an attempt to discuss the consequences of the most recent Ukraine Defense Contact Group meeting, the Pentagon reported on Tuesday. The US will reportedly supply the war-torn nation with more High Mobility Artillery Rocket Systems (HIMARS) in order to counter Russian aggression, the report said. 

(Image: AP)