Russia's brutal war against Ukraine has had significant negative consequences for Ukrainian businesses and the financial sector, including a decrease in business activity, income, and production due to population displacement and lower spending capacity. USAID is investing over $874 million to sustain Ukraine’s economy during the war and lay the groundwork for a strong and swift economic recovery at war’s end.
Through the Agriculture Resilience Initiative (AGRI) - Ukraine, USAID helps Ukrainian farmers grow and export crops critical to Ukraine and the world’s food security by providing seeds and fertilizers, enhancing processing, and upgrading export infrastructure. USAID leverages co-investment from Ukrainian micro-, small-, and medium-sized businesses to increase their reach and sustainability in order to positively contribute to the broader economy. USAID also supports the Government of Ukraine to more effectively and transparently manage state-owned assets in order to maximize their benefit to the Ukrainian people.
With support from USAID, Ukrainians are building a strong financial sector in Ukraine regulated by politically and financially independent entities, supported by industry best practices, integrated with international standards, and trusted by Ukraine’s citizens and the investor community.
Current Programs:
AGRICULTURE SECTOR SUPPORT:
The GROW Project in Ukraine
Implementer: World Council of Credit Unions (WOCCU)
Project Period: July 1, 2024 - September 30, 2028
USAID’s GROW Project will expand access to finance through credit unions for legal entities and private entrepreneurs, including farms, micro, small, and medium enterprises (MSMEs), and cooperatives, as well as individuals in rural areas who are seeking to start or expand existing businesses. To facilitate this, GROW will address the supply of business financing, improve the enabling environment, and deepen the technical capacity of credit unions to provide and promote their financial services.
Agriculture Growing Rural Opportunities
Implementer: Chemonics
Project Period: November 15, 2019 – November 13, 2026
USAID’s Agriculture Growing Rural Opportunities (AGRO) activity works to increase revenues and productivity for small- and medium-sized agricultural enterprises, establish a fair and transparent land market, spur irrigation policy reform, and decrease opportunities for corruption within the agricultural sector. AGRO does this by helping restore the Ukrainian agricultural sector’s performance in the aftermath of Russia’s invasion, increasing market access for agricultural producers, and encouraging critical regulatory and legal reforms.
Harvest
Implementer: Chemonics
Project Period: April 1, 2024 – March 31, 2029
USAID’s Harvest activity helps improve Ukrainian farmers’ production efficiency, sustainability, and competitiveness in the current war-time environment, while helping lay the groundwork for the sector’s long-term, sustainable growth. The program is part of USAID’s groundbreaking Agriculture Resilience Initiative-Ukraine (AGRI-Ukraine) aimed at bolstering Ukraine’s agricultural production and exports and helping alleviate the global food security crisis caused by Russia’s illegal invasion of Ukraine.
Credit for Agriculture Producers
Implementer: World Council of Credit Unions
Project Period: August 25, 2016 – September 30, 2024
USAID’s Credit for Agriculture Producers (CAP) enhances Ukrainian credit unions’ ability to close the gap between supply and demand for credit by creating a better regulatory and legislative environment, building the capacity of the National Bank of Ukraine as the sector’s regulator, establishing a sustainable source of liquidity for credit unions, and further strengthening their capacity to extend agricultural loans.
Economic Resilience Activity
Implementer: DAI
Project Period: August 27, 2018 – August 26, 2026
USAID’s Economic Resilience Activity (ERA) supports Ukraine to build a resilient, inclusive, and revenue-generating economy by strengthening public and private sector export logistics and infrastructure in order to increase the country’s overall agricultural exports. ERA does this by leveraging public and private sector investment to increase Ukraine’s grain shipment capacity and by upgrading Ukraine’s border crossing points to reduce export costs and increase export efficiency.
Development Credit Authority Loan Portfolio Guarantee Program with Bank Lviv
Implementer: U.S. International Development Finance Corporation
Project Period: September 2019 – September 2029
The Development Credit Authority Loan Portfolio Guarantee aims to expand Bank Lviv’s agricultural lending portfolio by providing local and foreign currency loans to Ukrainian micro-, small-, and medium-sized agricultural enterprises in order to increase their competitiveness.
PRIVATE SECTOR SUPPORT:
Investment for Business Resilience
Implementer: DAI
Project Period: July 13, 2022 – July 13, 2027
USAID’s Investment for Business Resilience Activity (IBR) aims to transform Ukraine’s economy into an open, transparent, competitive market that aligns with European standards and is integrated into international financial systems. The Activity does this by strengthening the private sector’s resilience and export capacity, increasing the supply of finance for business, and supporting systemic legal and regulatory changes.
Competitive Economy Program
Implementer: Chemonics
Project Period: October 16, 2018 – October 15, 2025
USAID’s Competitive Economy Program (CEP) advances a strong, diverse, and open Ukrainian economy by supporting Ukrainian small- and medium-sized enterprises to become more competitive in domestic and international markets. CEP accomplishes this by strengthening the business enabling environment, supporting new and innovative industries and firms, increasing access to finance and investment, and promoting export and trade.
PUBLIC SECTOR ACCOUNTABILITY AND ASSET MANAGEMENT:
State-Owned Enterprises Reform Activity
Implementer: Deloitte
Project Period: April 26, 2021 – April 25, 2028
USAID’s State-Owned Enterprises Reform Activity (SOERA) aims to enhance public sector governance and property management, including planning and advancing critical reforms of Ukraine’s State-Owned Enterprises (SOEs), improving management of state and municipal assets, sustaining a wartime economy, and ensuring a swift and transparent reconstruction at the war’s end. SOERA works to strengthen public sector business operations and transparency, improve governance and oversight, advance privatization of selected SOEs, and develop a strategic management model for SOEs remaining in state ownership. In addition, the Activity assists the Government of Ukraine to maintain critical infrastructure and provide essential services, as well as to ensure proper use of U.S.-provided direct budget support.
DBS Audit Activity
Implementer: KPMG
Project Period: September 12, 2023 – September 11, 2028
The United States, through USAID, has provided $22.9 billion in direct budget support (DBS) to Ukraine to help the Government of Ukraine (GOU) meet its citizens' critical needs and ensure the country's operational continuity despite Russia's brutal invasion. The DBS Audit Activity conducts audits of financial statements, internal controls, and compliance procedures to ensure the proper use of these funds.
Competitive Markets Program
Implementer: U.S. Federal Trade Commission
Project Period: December 4, 2019 – December 5, 2024
USAID’s Competitive Markets Program (CMP) promotes the development of effective competition policy and a competitive business environment in Ukraine. The program does this by strengthening the capacity of the Antimonopoly Committee of Ukraine, supporting regulatory and legal reform, and combating anti-competitive conduct.