The US State Department has officially ended a major initiative aimed at restoring Ukraine’s war-torn energy grid, according to two USAID officials working on the agency’s Ukraine mission. This decision marks the termination of a program that has invested hundreds of millions of dollars into stabilizing Ukraine’s power infrastructure, which has faced relentless Russian attacks.
A Devastating Blow to Ukraine’s Energy Sector
Ukraine has been grappling with constant power outages due to targeted assaults on its energy facilities. For nearly three years, the country’s power systems have endured significant damage, forcing authorities to implement overnight electricity shutdowns in multiple regions.
“This decision drastically weakens the administration’s leverage in ceasefire negotiations and signals to Russia that we no longer prioritize Ukraine or our past investments,” an anonymous USAID official involved in the Ukraine mission told NBC News.
The Two-Front War: Military and Economic
According to USAID officials, Russia is waging a dual war against Ukraine—both militarily and economically. By crippling Ukraine’s economy, Moscow aims to destabilize the country further. USAID had been playing a critical role in ensuring Ukraine’s resilience by supporting its energy grid and preventing an economic collapse.
“We have provided extensive support to the Ukrainian government to help them avoid a macroeconomic crisis,” the official added.
USAID Scaling Down Operations in Ukraine
Alongside terminating the Ukraine Energy Security Project, USAID is making a significant reduction in its on-the-ground presence in Ukraine. Before the latest directive, 64 American government employees and contractors were stationed in the country. However, only eight personnel will remain after the Trump administration placed the remaining global workforce on administrative leave and recalled non-essential workers to the US.
Officials warn that withdrawing USAID support at a critical moment will leave Ukraine’s energy grid vulnerable, especially during the harsh winter months when Russian missile attacks intensify.
Concerns Over Transparency in Financial Aid
Another alarming development is the termination of a program dedicated to financial sector reform. According to a document obtained by NBC News, the State Department has ordered this initiative to be shut down as well.
Without USAID’s oversight, officials fear that ensuring financial aid reaches its intended recipients will become increasingly difficult.
“We won’t have visibility into where this money has gone over the last few years,” one USAID official expressed concern.
A Broader Reduction in USAID Personnel
USAID’s Bureau for Europe and Eurasia, which oversees operations in Ukraine, is also facing drastic cutbacks. The bureau, which originally had 115 staff members in Washington, D.C., is now expected to downsize to just 29 employees.
The State Department has not yet responded to requests for comment regarding these developments. However, the decision to pull back support for Ukraine’s energy sector and financial oversight raises serious concerns about the country’s ability to sustain itself in the ongoing conflict.
