The U.S. State Department has terminated a U.S. Agency for International Development (USAID) program that invested hundreds of millions of dollars in restoring Ukraine’s energy grid, according to two USAID officials involved in the agency’s Ukraine mission.
The Ukraine Energy Security Project, which has played a crucial role in stabilizing the war-torn country’s energy infrastructure, was officially shut down this week. The decision comes as Ukraine continues to endure near-constant Russian attacks on its power facilities, leading to overnight outages in several regions.
The USAID officials, speaking on condition of anonymity, warned that withdrawing U.S. support would leave Ukraine’s energy infrastructure vulnerable, particularly during the harsh winter months when Russian missile strikes have intensified.
“This significantly undercuts the administration’s ability to negotiate on the ceasefire and signals to Russia that we don’t care about Ukraine or our past investments,” one official told NBC News.
The official added that Russia is waging both a military and economic war against Ukraine, targeting essential infrastructure to weaken the country’s economy. USAID has played a pivotal role in maintaining economic resilience by bolstering Ukraine’s power grid and preventing a broader financial crisis.
In addition to ending the energy initiative, USAID is also dramatically reducing its staff in Ukraine. Previously, 64 U.S. government employees and contractors worked on the ground in Ukraine for the agency. Following the latest decision, that number will shrink to just eight, as non-essential personnel have been placed on administrative leave and ordered to return to the U.S.
A State Department spokesperson did not immediately respond to requests for comment.
USAID officials also expressed concerns that ending the program would reduce accountability over U.S. financial aid provided to Ukraine.
“We won’t have eyes on where this money has gone over the last few years,” one official said.
According to internal documents obtained by NBC News, the State Department has also ordered the termination of a program focused on financial sector reform in Ukraine.
Meanwhile, USAID’s Bureau for Europe and Eurasia, which oversees Ukraine operations, is undergoing significant cuts. Out of 115 staff members based in Washington, D.C., only 29 will remain active.
As Ukraine faces mounting pressure from Russian forces, the abrupt withdrawal of U.S. support raises serious concerns about the future stability of the country’s energy grid and economy.
