The U.S. State Department has ended a major initiative by the U.S. Agency for International Development (USAID) that has invested hundreds of millions of dollars in restoring Ukraine’s energy grid following Russian military attacks, according to two USAID officials working on Ukraine operations.
Due to recent strikes on energy infrastructure, Ukraine has faced overnight power outages in some regions. Throughout the three-year war, the country’s power system has endured continuous damage.
One USAID official involved in the Ukraine mission told NBC News, “It significantly undercuts this administration’s abilities to negotiate on the ceasefire, and it’d signal to Russia that we don’t care about Ukraine or our past investments.”
The official further explained that Russia is waging both a military and economic war in Ukraine, aiming to collapse the economy. USAID has played a key role in helping Ukraine’s economy remain resilient, including strengthening its energy infrastructure. “We’ve provided vast amount of support to the Ukrainian government to avoid a macro economic crisis,” the official added.
Alongside shutting down the Ukraine Energy Security Project, USAID is also significantly reducing its personnel in Ukraine.
Before these latest actions by the Trump administration, 64 American government employees and contractors were stationed in Ukraine for USAID. However, after the administration placed the agency’s remaining global workforce on administrative leave, only eight personnel will stay in the country, with non-essential workers ordered to return to the U.S.
The two USAID officials expressed concerns that this withdrawal will leave Ukraine’s energy grid vulnerable as winter continues and Russian missile attacks persist.
A State Department spokesperson has not yet responded to a request for comment.
Additionally, the officials emphasized that USAID has played a crucial role in ensuring financial aid to Ukraine is properly allocated.
A document obtained by NBC News reveals that the State Department has also decided to shut down a program aimed at financial sector reform.
One official warned, “We won’t have the eyes on where this money has gone over the last few years.”
USAID’s Bureau for Europe and Eurasia, which manages the Ukraine mission, currently has 115 employees based in Washington, D.C. According to the two officials, this number will be reduced to 29 active employees.
