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reverts government bonds to the issuers, which would automatically void the West’s obligation to redeem sovereign debt and is equivalent to fiscal default. Second,confiscation sets a fiduciary trap. It forfeits the future for the present. Money hastily spent today in order to circumvent political opposition will not be available for Ukraine’s reconstruction after the war ends. An alternative solution is to create a "Russian Trust Fund" and consolidate all frozen assets under the guardian appointed by Western governments. It is also necessary to involve the Russian Central Bank through proxies to ensure accountability. This fund would become a depository and loan pool of last resort, providing short-term loans to Western governments in order to finance Ukraine. At the same time, Western governments and Ukraine could jointly establish the Fund for the Reconstruction of Ukraine, which would file a lawsuit against the Russian trust fund and demand payment of war reparations.
Lack of funding prevents US from meeting Ukraine's most urgent battlefield needs. The U.S. government has not provided any military aid to Ukraine for the first time since the Ramstein-format meeting of the Ukraine defence Contact Group (UDCG) was established in April 2022, Pentagon spokesperson Patrick Ryder said during the briefing on Jan. 23.
Republicans demand the White House define the "ultimate goal" of providing funds to Ukraine. Speaker of the United States House of Representatives, Republican Mike Johnson, demands that the Biden administration clearly formulate its ultimate strategic goal of supporting Ukraine before asking Congress to approve a new package of military aid to Kyiv. He insists that having a clear picture of how American aid is being spent is important. Johnson accused the Biden administration of failing to respond to his repeated inquiries about the intended outcomes of providing aid to Ukraine. In addition, the politician is considering direct negotiations with Biden regarding additional funding for Ukraine and US border security. However, the White House has reportedly urged Johnson to participate in slow-moving bipartisan talks in the Senate. On January 8, Republicans and Democrats in the US Congress agreed on a federal budget of $1.66T before the end of the fiscal year. Biden praised Congress for coming to an agreement on the budget and called for further consideration of his request for aid to Ukraine and Israel.
State Department: US may not continue supporting Ukraine at level of 2022, 2023. State Department spokesperson Matthew Miller's comments come as other U.S. officials have acknowledged that there is essentially no money left for Ukraine aid absent legislative action by Congress.
White House representative of the National Security Council John Kirby says that the US has run out of money for new military aid to send to Ukraine on January 4 and won’t get more unless Congress approves the draft $61bn package . Kirby said that there are no available funds
for new military aid packages to Ukraine after President Joe Biden signed the last military assistance package for Kyiv in December. Additional security assistance requires congressional approval, Kirby emphasised.
• EU Aid
The Ukraine Facility envisages 15 key reform areas, the implementation of which will contribute to the modernization of our country on its way to the EU, Ministry of Finance (MinFin) said in a statement.
The program will also support the transition to a green, digital, and inclusive economy that will be gradually aligned with EU rules and standards. The instrument is subject to approval by the EU Parliament and Council.
"The decision on the Ukraine Facility is not only about financial assistance, but also about trust in our country as a partner and the European future of our
59 UKRAINE Country Report February 2024 www.intellinews.com