Two years ago, the world was horrified when President Vladimir Putin launched a brutal and baseless invasion to conquer and occupy Ukraine. Today, the headlines focus primarily on wins and losses on the battlefield, but the big picture is this: With the support of the United States and other partners, Ukraine is gradually but surely building a future firmly rooted in the Euro-Atlantic world. and has shown remarkable results in the process. Economic resilience.
Although Ukraine’s economy still has a long way to go to recover from the shock of Russia’s ongoing full-scale invasion, the success of this effort is first and foremost due to the Ukrainian people, who have shown extraordinary determination and courage in defending their homeland. will benefit. and a desire for democracy. But it would undoubtedly also benefit the United States and its allies and partners. They would benefit greatly from the full integration of a sovereign, independent and secure Ukraine into the Euro-Atlantic family. This is why it is critical that the U.S. House of Representatives act and move quickly to pass the bipartisan national security supplement bill that passed the Senate with an overwhelming majority.
Some people misunderstand our aid to Ukraine as a quid pro quo. There must be no difference from the truth. U.S. support for Ukraine, coupled with the significant contributions of our allies and partners, is rather an investment in a free, complete, and peaceful Europe, a long-standing U.S. policy and one of the cornerstones of Euro-Atlantic security.
Immediately after Putin’s invasion, Ukraine struggled to grow and ship agricultural products that countries around the world depend on for basic food. Like millions of their compatriots, many Ukrainian peasants had left their fields to serve on the front lines or fled in search of safety. The Russian Navy began to blockade Ukraine’s Black Sea ports, which caused Ukraine to export more. 90 percent of agricultural productsAs a result, by early March 2022, World wheat prices rose 55% People in developing countries around the world are bearing the brunt of these staggering price increases, a change from where they were just a few weeks ago.
Despite Russia’s efforts to crush Ukraine’s economy, the situation in Ukraine’s exports today is markedly different. Last year, Ukraine exported 62 million tons of agricultural products, contributing more than $17 billion to the Ukrainian economy. This year’s gross domestic product (GDP) growth rate is expected to be 3.2%, which is higher than the expected 6% growth rate in 2023. These results demonstrate the impact of external stabilization support provided by the United States, the European Union, Pacific nations, and a broad coalition of partners and allies. Ukraine’s economy shrinks by almost a third in 2022. While support remains essential if Ukraine is to continue to withstand President Putin’s attacks, our current efforts are paving the way for Ukraine’s economy to continue to recover and for the country to no longer need external aid. This is a goal shared by the Ukrainian government. Ukraine.
How did Ukraine accomplish it? The answer, of course, begins and ends with the ingenuity, resilience and tenacity of the Ukrainian people. But this is also a story about how smart U.S. investment and diplomacy, with bipartisan support in Congress and support from our allies and partners, has produced an impressive return on investment, which I now share with you. We cannot give up.
In July 2022, the United States Agency for International Development (USAID) Launched agricultural resilience initiativeis known as AGRI-Ukraine, to support Ukrainian farmers in all stages of agricultural production. The initiative includes delivering fertilizer and seeds to more than 14,000 farmers and providing storage solutions to preserve 1.9 million tonnes of grain and oilseeds such as sunflower. To date, our investments in inputs and storage have totaled approximately $30 million, and Ukrainian farmers have benefited greatly, with revenues of approximately $500 million.
As the United States and its allies work with Ukrainian farmers to raise food production to pre-war levels, Ukraine continues to fight back against President Vladimir Putin’s efforts to subjugate the country economically with bombing and economic blockades. In July 2023, Ukraine launched a maritime export corridor that hugs the country’s coast along the Black Sea. The opening of this corridor has had a significant positive impact on the Ukrainian economy, thanks in part to US assistance linking Ukraine’s export logistics and infrastructure. Last month, the Black Sea Corridor enabled the export of more than 6 million tons of agricultural products, returning the country to pre-war levels. Ukraine’s tax revenue is currently 25-30% higher than expected This is mainly due to the successful functioning of this export route.
In parallel, USAID is increasing Ukraine’s economic resilience by expanding export capacity through Danube ports, roads, and rail. For example, at Danube ports, USAID provides boats to transport maritime pilots between shore and ship, allowing large grain ships to quickly and safely access the ports. We also supply loaders, trailers and rail cars specifically designed for grain, allowing exporters to transport large quantities of goods on a variety of routes.
USAID is also helping improve border crossings to allow more goods to be exported in the coming years. Improvements at the first nine of these border crossings are expected to increase exports by at least $425 million annually. Kiev’s new trade ties with Europe have integrated it economically with the West to an extent unimaginable before Putin’s invasion.
The sum total of these interventions is to entrench Ukraine in the West and become increasingly economically independent. This reality is in stark contrast to President Putin’s dream of a vassal state of Ukraine.
Helping Ukraine achieve this goal is no small feat, even as President Putin seeks to destroy it. But the stakes remain high when it comes to U.S. strategic interests. Bipartisan support, combined with the support of our European allies and partners around the world, has enabled Ukraine to reach where it is today. Ending aid to Ukraine now would be a victory for President Putin and bullies around the world, and the consequences could be potentially devastating.
Ukraine has already demonstrated the return on investment that our support can bring. On this anniversary, we must show the fortitude to keep it that way. That’s why it’s important that Congress provides military, economic, and development assistance to Ukraine.
Isobel Coleman is USAID’s Deputy Administrator for Policy and Planning, where she oversees USAID’s Regional and Major Directorates. As Deputy Director, she led USAID’s crisis response efforts, including representing USAID on the National Security Council’s Deputies Committee, promoting food security, global health, democracy, economic growth, and addressing the root causes of conflict. It oversees the Agency’s efforts to address the causes.
