USAID funding freeze: Expert Riabtsev on potential risks for Ukraine’s energy sector

Energy expert Hennadii Riabtsev, head of special projects at the Psychea Scientific and Technical Center, shared this opinion on Espreso TV.  

"If we’re being honest, the priority should be connecting the energy equipment that has already arrived in Ukraine. There are still several hundred units sitting unpacked in transport containers, not yet integrated into the system. Similarly, some allocated funds, including those for distributed generation projects, have not yet been used. That’s why I believe the three-month freeze will provide time to put existing equipment into operation," he said.  

Riabtsev also noted that not all funding comes as grants—many credit lines have been opened to purchase equipment.  

"Companies like Ukrnafta, Ukrzaliznytsia, and Naftogaz, along with other major firms, are acquiring both energy and non-energy sector equipment. Additionally, Ukraine’s Energy Support Fund, administered by the European Energy Community, continues operating. While some U.S. funds are part of this initiative, these programs will proceed regardless of whether USAID funding is restored. Of course, in the current situation, extra resources are always needed, and it would be better to have them in three months than not at all," the expert added.

Suspension of USAID funding: what is known

On his first day in office, U.S. President Donald Trump ordered a 90-day freeze on all U.S. foreign aid programs for review.  

American diplomats urgently requested the exclusion of Ukraine-related programs from the freeze, issued by Secretary of State Marco Rubio.  

On January 26, media reports citing sources stated that USAID had been instructed to halt all projects in Ukraine. The next day, USAID officially confirmed the suspension of funding for all Ukrainian programs and projects. The agency had supported education, science, media, and cultural initiatives, provided medical equipment and supplies to communities hosting displaced people, and funded mobile medical teams, vaccination programs, rehabilitation services, and psychological support.  

"People don’t realize the scale of USAID’s work and other U.S. programs because they never sought publicity," BBC quoted Ukrainian MP Mykyta Poturaiev, head of the parliamentary committee on humanitarian and information policy.  

According to Poturaiev, USAID was also a key donor for many international programs, such as UNDP and UNICEF.  

"USAID was often listed as just a partner, but in reality, it was the main, systemic donor. The losses for Ukraine from this aid freeze are far greater than we can imagine," he mentioned.

• The Ukrainian energy system has passed the midpoint of the autumn-winter period.