$250 million in U.S. energy aid pledged under Biden remains unpaid to Ukraine

Reuters reported the information.

U.S. and European officials are sounding alarms over approximately $250 million in energy aid for Ukraine that has stalled in what sources describe as bureaucratic limbo, even as bone-chilling temperatures and relentless Russian attacks push the war-torn nation's power infrastructure to the breaking point.

The funds were originally earmarked to help Ukraine import liquefied natural gas and repair energy facilities destroyed by Russian missile strikes, according to multiple sources familiar with the matter, including U.S. and Ukrainian officials who requested anonymity to discuss sensitive internal deliberations. The U.S. Agency for International Development had notified Congress of its plans to release at least a portion of these funds during the Biden administration.

However, the effective shutdown of USAID in the opening weeks of President Donald Trump's administration has left the money in a state of administrative uncertainty. Some officials are now advocating for the State Department—which oversees what remains of USAID—to distribute the assistance, while others push for involvement from the Development Finance Corporation, a previously low-profile federal agency expected to take a leading role in Ukraine's reconstruction.

Unlike previous instances where the Trump administration paused military aid to Ukraine as leverage during peace negotiations between Moscow and Kyiv, sources say this delay appears rooted in bureaucratic confusion and interagency disputes rather than diplomatic strategy.

The holdup has sparked growing frustration as Ukraine endures what officials describe as a humanitarian crisis. Russian attacks on power plants and pipelines have left millions exposed to brutal winter conditions, with residents in major cities including Kyiv experiencing power outages lasting hours or even days. Indoor temperatures in some homes have dropped to 7 degrees Celsius, while water supplies face disruptions. Overnight lows in the capital are forecast to plummet to around -24 degrees Celsius next week.

Ukrainian officials told foreign diplomats in recent days that all of the country's major energy plants had been "damaged or ruined," according to a presentation reviewed by Reuters. The document identified roughly $807 million in unfunded energy infrastructure needs.

"They're preparing for the fact that people in the upper (stories) of apartment buildings are going to freeze to death," said Mykola Murskyj, director of advocacy at Razom, a nonprofit supporting Ukraine. "They're preparing to retrieve the bodies. It's extremely grim."

While Ukrainian officials are aware of the stalled funds, they reportedly fear that raising the issue could trigger diplomatic backlash, given Trump's sometimes cool reception to Ukrainian assistance requests. Congressional aides have also begun seeking additional information about the delayed disbursement.

Halyna Yusypiuk, spokeswoman for the Ukrainian embassy in Washington, emphasized continued cooperation: "(The) Ukrainian and American sides are working on a daily basis to strengthen the stability of Ukraine's energy system."

A Development Finance Corporation spokesperson said the agency is "working closely with all interagency partners with the goal of supporting Ukraine's reconstruction efforts and advancing shared economic security and prosperity for the United States and Ukraine."

The White House Office of Management and Budget, however, defended the delay by citing past mismanagement. "The Biden Admin support to Ukraine's energy sector was a disaster, we have an USAID IG report showcasing how contractors in Ukraine likely lost millions worth of energy products due to no oversight, corruption, theft, etc," a spokesperson stated. "President Trump has done more than anyone to bring peace to this brutal war."

The broader restructuring of the federal bureaucracy under the Trump administration has complicated aid distribution to U.S. allies. The dismantling of USAID has created uncertainty about disbursement procedures, while the drastically downsized National Security Council—which traditionally resolved conflicts between agencies—has left fewer mechanisms for coordinating responses. Sources also noted that energy assistance to Ukraine has historically moved slowly due to longstanding corruption concerns within the nation's power sector.