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6.0 Public Sector 6.1 Budget
The US will help Ukraine through direct budget support. The United States, through direct budget support, will help ensure Ukraine's resilience and recovery, stated the US Ambassador to Ukraine, Bridget Brink. "I look forward to working with Denys Shmyhal to help Ukraine defend itself against Russian aggression and support Ukraine's resilience and recovery. With direct budget support of $7.5B, we will ensure that Ukraine continues to be strong," the diplomat said. Ukraine has recently received the first $1B of US economic aid from the new $40B aid package. Another $7.5B in grant aid will be received soon.
Ukraine covers only 62% of the state budget expenditures. "We cover only about 62% of the state budget, and this does not take into account military expenditures. In addition to that, May’s inflation reached 18%," said the Minister of Finance, Serhiy Marchenko. According to him, the loss from the Russian invasion amounts to $103.9B. For example, the demolition of residential buildings alone has cost Ukraine $39B. Moreover, Ukraine expects a significant reduction in GDP due to the destruction of infrastructure and lost business revenues. “We received financial support from the EU and Western partners at the beginning of the war, but this was not enough to cover all of the costs. We already have financial aid agreements with partners but obtaining this support takes time,” Marchenko continued.
29 UKRAINE Country Report XXXX 2018 www.intellinews.com