Ukraine Weapons Fund Will Run Out on December 30, Pentagon Claims. What Next? Ukraine is Totally Bankrupt According to the IMF
All Global Research articles can be read in 51 languages by activating the Translate Website button below the author’s name (only available in desktop version).
To receive Global Research’s Daily Newsletter (selected articles), click here.
Click the share button above to email/forward this article to your friends and colleagues. Follow us on Instagram and Twitter and subscribe to our Telegram Channel. Feel free to repost and share widely Global Research articles.
***
The United States Department of Defence has notified Congress that funds allocated to resupply weapons for Ukraine will be exhausted by December 30, as reported by Bloomberg, citing a letter from Pentagon Comptroller Michael McCord sent to members of the American Parliament. At the same time, the IMF has announced that Ukraine can hold out for only “a couple of months” without Western financial support.
For the first time, the Pentagon announced an exact date for the exhaustion of resources intended to support Kiev, according to Bloomberg. The remaining amount, estimated at $1.07 billion, will include several weapons and equipment acquisitions.
According to McCord’s letter, $635 million will be allocated to purchase missiles, while $210 million will be allocated for high-explosive 155mm M795 shells, as well as fuses and primers for the fragmentation projectiles. In addition, $129 million will be directed to the Navy’s classified financing in other missile types.
The Pentagon also plans to use $17 million to replace acoustic sensors supplied to Ukraine, $4.3 million to replace tactical vehicles, metal fences and barriers for the Air Force, and $737,000 to acquire camouflage jackets for the Air Force.
McCord emphasised in the letter that once these funds are allocated, the US Department of Defense will have exhausted the resources available to assist the Ukrainian military.
On December 18, the White House strategic communications coordinator, John Kirby, stated that Washinton would announce a new military assistance package for Ukraine at the end of December, which would be the last. He highlighted that the US has already sent the remaining funds to assist Ukraine in replenishing its military reserves.
Pentagon spokesman Patrick Ryder indicated earlier this month that Washington would have to choose between their own readiness to combat and the supply of weapons to Ukraine due to a lack of financial resources.
It is worth mentioning that in relation to such transfers, Russia has already sent a note to NATO warning about arms deliveries to Ukraine. Russian Foreign Minister Sergei Lavrov stated that any shipment containing weapons to Kiev would be considered a legitimate target, while the Russian Foreign Ministry warned that Western countries are “playing with fire” by providing military resources. Lavrov also accused the US and NATO of being directly involved in the conflict, not only through the supply of weapons but also by training personnel in several European countries.
Meanwhile, Kristalina Georgieva warned of difficulties in financing Kiev. According to the managing director of the International Monetary Fund, as quoted on December 17 in the British newspaper Financial Times, Ukraine can withstand the absence of external financial aid for only “a couple of months” and will face difficulties if the European Union and the US fail to resolve the issue of financing.
Georgieva said Ukraine’s economic recovery would be harmed if the country was forced to adapt to the absence of new financial assistance. She warned against the consequences of policies such as money printing, which Kiev would be obliged to follow in case of further delays.
“What is important is not to prolong this period, because then it would put more pressure on Ukraine to adjust,” she pointed out during a visit to South Korea.
Georgieva assured that work will continue in the US and Europe about new aid packages and that “Ultimately,” she remained “optimistic they will secure the funding.”
It is recalled that the US Congress failed to approve on December 13 a $60 billion financing package for Kiev, even after Ukrainian President Volodymyr Zelensky travelled to Washington to lobby lawmakers. Furthermore, at a summit in Brussels, European Union leaders could not agree on a financing plan of four years of €50 billion for Ukraine after Viktor Orbán, Prime Minister of Hungary, vetoed the proposal.
The question remains as to what effect this funding will have for Ukraine since there is little hope that Ukrainian forces can reverse their predicament, especially when Russia decides to launch a major offensive, something it has not done for the entirety of 2023 as it instead preserved its forces and completely repelled the much-lauded NATO-backed summer counteroffensive. Although it is expected that the US and EU will ultimately send more money, it is very unlikely it will have much of an impact to swing the war in Ukraine’s favour, especially the longer it is delayed.
*
Note to readers: Please click the share button above. Follow us on Instagram and Twitter and subscribe to our Telegram Channel. Feel free to repost and share widely Global Research articles.
Ahmed Adel is a Cairo-based geopolitics and political economy researcher. He is a regular contributor to Global Research.
Featured image source
