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Questions raised on just how long the US can continue funding the Ukrainians.
Written by Ahmed Adel, Cairo-based geopolitics and political economy researcher
US spending on military aid to Kiev since Russia launched its special military operation, particularly ammunition and military equipment, has reached tens of billions of dollars and shows no sign of abating. In fact, the US is poised to provide at least an additional $800 million in 2023 to Ukraine.
The total amount of money the US has sent to Ukraine to date now stands at around $68 billion, and with the war seemingly not concluding in the short-term, the American leadership appears committed to spending more taxpayer’s money. It is recalled that the first $13.6 billion package was approved by US lawmakers in March, which was just days after Russia launched its military operation on February 24.
Soon after, in May, another $40 billion was added to this. In September, another package was approved, this time worth $13.7 billion. In late November, US President Joe Biden gave the green light for a new defence assistance package for Ukraine totalling $400 million.
Although most of the money that the US sends to Kiev is destined for arms and military equipment, the training of military personnel, and the exchange of intelligence, some of the funds are also directed to other activities and operations. For example, some of the money goes directly to Kiev’s state coffers as the country faces a real economic collapse. A portion of the aid money is also earmarked for US government operations related to the Ukrainian crisis and another portion is targeted at humanitarian issues.
Expenses are expected to multiply next year. In early December, Biden asked Congress for an additional $37.7 billion for Ukraine. The package includes funds for more weapons and equipment for the Ukrainian military, as well as money that would go directly to support the Kiev regime.
On December 7, committees from both houses of the US Congress agreed to a record military budget for fiscal year 2023 that will cost taxpayers $847.3 billion. This budget could become the largest in US history and signifies that Washington is certainly not scaling down its attempts to maintain a unipolar order through global militarism.
Without US finance, the Ukrainian state would have collapsed long ago as it struggles to find loans or donations to cover the massive budget deficit expected in 2023. The cost of war is one of the biggest issues Ukraine is facing and has the potential of compounding even more debt or triggering inflation.
Ukrainian President Volodymyr Zelensky said Ukraine needs $38 billion in its war effort and another $17 billion for post-war reconstruction. Currently, the war is eating Ukraine’s budget, with defence spending six times higher in the 2023 budget, which was recently passed by the Ukrainian parliament. Ukraine’s military and security spending will total 43% of the budget, or an enormous 18.2% of annual economic output.
In comparison, Russia’s 2023 defence budget is approximately $84 billion, constituting only 3.3% of the country’s GDP. With this massive disparity, and the fact that Russia has a functioning economy despite the Western imposed sanctions, it is understood why American funding is critical to the survival of the Ukrainian state.
Russia’s budget has been bolstered by high oil and natural gas prices, which has also helped shield it from the full effects of Western sanctions. The EU, US and Australia hope that a price cap on Russian oil will affect the country’s finances, however this is unlikely since Russia is just increasing sales to energy hungry countries in Asia.
As Ukraine cannot compete with the Russian economy, despite it being partially handicapped by Western sanctions, the US has become the leading donor. The European Commission is also contributing and has proposed a €18 billion no-interest, long-term loan.
AP explains though that Ukraine wants grants from the EU instead loans as the financing of loans would see debt rise to over 100% of annual economic output from around 83% now and 69% before the war – a burden which could hold back spending on the war recovery. The EU appears unwilling to hand out grants. Even for Kiev to get the loans, the European Commission requires Ukraine to make major improvements in its corruption record.
With the US already committing a further $800 million next year, alongside the tens of billions already sent in 2022, it can only be expected that this figure will balloon over the course of 2023. This signals that the US is fully committed to its maximum pressure campaign against Russia. It also raises the question on just how long the US can remain committed to funding the Ukrainians.
The US tax payers is financing his own grave. The more the tax dollars go to arm Ukronazistan, the more we are approaching WW3 (which can’t be won by the USA). We are already at point of no return.
Public money being funded to support Kiev Nazis.
No. We support Ukraine as an independent state able to defend itself. It was defines as such 30 years ago by UN too.
Ukriane as well as Rustica has not kept Minsk2 in those matters. But it also dont give Rustica right to invade them.
The people of Eastern Ukraine don’t want to be part of Ukraine anymore. What part of democracy and freedom don’t you understand?
Biden’s and his friends who make weapons get most of the money from the US and NATO members and now Ukraine is an excuse to loot their own countries for a border dispute that is really none of their business.
You are totally wrong. I speak for myself and Denmark too.
Since ancient times the Baltic Sea has been and open one with mixted populations at its borders. There was free trade but also disputes and wars. It was open until the communist´s stopped it after and under WW2. The Tzars had it as open too.
We want that back. You kind took it all the way to west of DDR. Thats a NO MORE. NEVER EVER.
Ukras dont have t loote. They get donations to defend themself not handcuffed by the collpased madness USSR/Russia.
By that we support the right for the Baltics, Finland, Poland and the old DDR. That of course goes for the rest even Our connections almost only are the old Vikings by Dnpjr and Volga.
Oh I forgot the last Tzarin was a Dane. Oh I forgot Vitus Bering.
Actually it is not that. One is the economic part. The second is the cultural.
Unfortunately, in regard to money, the West can finance the Maidanists indefinitely. However, they might not be able to in regard to weapons, despite Poland and the US are now producing ammunition for Soviet type weapons. Likely well below the Ukrainian “consumption”. Whole weapon systems cannot easily be replaced. Also the loss of manpower. Russia must concentrate on 1. reducing the numbers of Ukrainian fighting forces in the field (seizing land is not important at the moment), 2. damaging the West economically and if there’s a chance, destabilize it politically.
Sounds like a based plan.
A typical Rustica Bardusky Cirkus comment.
Of course EU as well as the rest of Nato and more then 35 countries are not mentioned at all. Its also ignored that millions of Ukra refugees now are well supported inside EU.
Still the article as in the old days try to compare Russian economy with us in the Western Economics. It only make sense for internal lies in Rustica.
The problems are the same as when the Communist were they. They have no infrastructure for increased production and wellfare. They even has reduced education for it. A one string cmmunication where the deciders only command from the top and know nothing about whats possible makes the final result.
And of course the dollar collapased 3 times last week too as well as the naked prolatars has no food under their umbrallas in the streets.
Debt is same thing. Very much debt is investments in production and distribtuion. By that We have active systems which gives plus even we have to pay back debts as well.
The USSR system prefare 1/10 cow and no milk. We have cows on loans. They give milk and we sell it and pay back.
Muslims in their Muhammed Economics are semilar in that. They dont understand why they are poor even they hardly produce, what they could and should. Instead they have to import even food from Rustica as well as Ukraine.
Russia is in a special situation being that big and being rich in natural resources. While it would be better if Russia had the large industry China has, neither does the West has it anymore – it was all outsourced to development countries. It would take 20 years to take it all back while at the same time increasing costs by factor 5, factor 20. Also, it cannot be done because of the demographic decline that now sets in: the last generation before the contraceptive pill is right now going into retirement. The West doesn’t have the population to re-shore it’s previous industries. The Western power is mainly based upon capital and military power. Create another, competitive center(s) for finance and successfully oppose it’s imperialist military power projection in the world and the West is undone.
The quickest way to achieve peace is to hit Ukraine’s energy-power infrastructure with all the means available, once the country is de-energized most economic, industrial capacity, ability to move troops and armaments will be next to impossible, the country will basically be back in the stone ice-age and ready for terms of unconditional surrender. It will be a blow NATO will never recover from.
And all these at the expense of taxpayers.
NO accounting , $ backed by nothing , until the world calls bullshit on the US dollar and this fiat $ scam , we have an infinite amount of dollars !
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So they chose world war 3 i guess.
Called whitewashing of Afghan poppy money. Fixed.