USAID terminates $75 mln grant agreement with Ukraine Energy Support Fund

MOSCOW. March 13 (Interfax) - The United States Agency for International Development (USAID) has terminated a $75-million grant agreement with the Ukraine Energy Support Fund, Ukrainian media said with reference to the Energy Community Secretariat, which is the administrator of this fund.

The Energy Community Secretariat received a formal notification from USAID regarding the termination of the grant agreement on February 27, it said.

The Energy Community Secretariat is currently awaiting further clarification from USAID. It believes that the termination of this grant will reduce the available funds for procuring essential equipment for Ukraine's energy sector.

The original agreement, signed in 2023 for $25 million, aimed to support the procurement of critical energy equipment for Ukraine's energy and heating sectors. In 2024, USAID pledged an additional $50 million to the fund.

As reported, the Ukraine Energy Support Fund under the Energy Community Secretariat was established in April 2022 at the joint initiative of Ukrainian Energy Minister German Galushchenko and EU Energy Commissioner Kadri Simson.

Contributions committed by partners to the Ukraine Energy Support Fund topped $1 billion as of early March 2025. The fund's donors include the public and private sectors from more than 30 countries, among them European Union member states, the United Kingdom, the U.S., as well as international and regional organizations.

Ukrainian Prime Minister Denis Shmygal said on March 4 some of the projects funded via the USAID program had already been replaced. However, the termination of financing through USAID led to the loss of some important projects in Ukraine, including customs reform, relevant equipment procurement and support for the energy sector.