Overview
U.S. and European officials have grown increasingly concerned that hundreds of millions of dollars in U.S. energy assistance pledged to Ukraine remain undisbursed, even as a harsh winter pushes the country’s war‑damaged power infrastructure to the edge, according to several officials familiar with the matter.
Those officials - including a U.S. official and a Ukrainian official - said the funds were intended to support Ukraine’s import of liquefied natural gas (LNG) and to finance reconstruction of energy assets damaged by Russian strikes. Two sources who spoke on condition of anonymity said the U.S. Agency for International Development had notified Congress during the Biden administration of its intent to release at least some of the monies.
Funds stalled after agency reorganization
Sources described the money as having fallen into bureaucratic limbo after USAID was effectively shuttered in the opening weeks of the Trump administration. That institutional disruption has complicated decisions about which parts of the U.S. government should execute the assistance.
Some administration officials have pushed for the State Department - which now oversees the remnants of USAID - to handle the disbursement. Others have advocated assigning a role to the Development Finance Corporation (DFC), a federal agency that many in Washington expect to play a larger role in Ukraine’s reconstruction. The debate over the appropriate implementer has delayed movement on the funds.
Past pauses and the current dynamic
The U.S. government has paused or delayed aid to Ukraine before. Military assistance shipments have been temporarily halted in the past, at times used to extract concessions during U.S.-led peace negotiations between Moscow and Kyiv. Multiple sources said the current delay in energy assistance appears to be the result of bureaucratic confusion and interagency infighting rather than an effort to exert leverage over Ukraine.
Still, the paused assistance - valued at roughly $250 million by two of the sources - has prompted rising frustration. Officials said Russian attacks on power plants and pipelines have left millions of Ukrainians exposed to the elements as temperatures plummet.
One source said aides on Capitol Hill are aware of the stalled funds and are seeking more information. A Ukrainian official said Kyiv is also aware of the situation but is cautious about raising the matter publicly for fear of provoking diplomatic fallout. U.S. President Donald Trump has at times been cool in response to Ukrainian requests for assistance, the sources noted.
Official statements and responses
Halyna Yusypiuk, a spokeswoman for the Ukrainian embassy in Washington, said Ukraine and the United States are cooperating on energy matters. "(The) Ukrainian and American sides are working on a daily basis to strengthen the stability of Ukraine’s energy system," she wrote in an e-mail.
A Development Finance Corporation spokesperson said the agency is "working closely with all interagency partners with the goal of supporting Ukraine’s reconstruction efforts and advancing shared economic security and prosperity for the United States and Ukraine."
The White House’s Office of Management and Budget appeared to reference a critical USAID inspector general report in suggesting past U.S. energy assistance to Ukraine had been misused. In an emailed statement, a spokesperson wrote: "The Biden Admin support to Ukraine’s energy sector was a disaster, we have an USAID IG report showcasing how contractors in Ukraine likely lost millions worth of energy products due to no oversight, corruption, theft, etc. President Trump has done more than anyone to bring peace to this brutal war."
Bureaucratic changes complicate aid flows
Officials said sweeping changes to the federal bureaucracy under the Trump administration have complicated the distribution of aid to allies. The effective elimination of USAID has left questions about how and when to disburse funds. At the same time, the National Security Council - an entity that in prior administrations would have mediated disputes among intelligence, national security, and diplomatic agencies - has been pared back, according to sources.
Beyond organizational disruption, concerns about corruption in Ukraine’s power sector have long slowed energy assistance from leaving Washington, a source added.
Human impact as winter bites
Residents in Ukraine’s major cities, including Kyiv, are dealing with power outages that can last hours or days and heating cuts that have left apartments as cold as 45 degrees Fahrenheit (7 degrees Celsius). Water supplies have been disrupted. The constant thrum of backup generators has become routine on streets that are frequently plunged into darkness at night. Forecasters project overnight lows in Kyiv to fall to around -12 Fahrenheit next week.
Ukrainian officials recently told foreign diplomats in Kyiv that all of the country’s major energy plants had been "damaged or ruined," according to a presentation seen by officials. That assessment identified roughly 675 million euros in unfunded energy needs - about $807 million at current conversions.
Mykola Murskyj, director of advocacy at Razom, a U.S.-based nonprofit that supports Ukraine, warned of the potential human toll of the coming cold. "They’re preparing for the fact that people in the upper (stories) of apartment buildings are going to freeze to death," he said. "They’re preparing to retrieve the bodies. It’s extremely grim."
Implications for reconstruction funding and energy security
The combination of organizational disarray, interagency debate, and preexisting anti-corruption concerns has left a substantial tranche of energy assistance unspent at a time when Ukraine’s immediate needs are acute. The choice between the State Department and the Development Finance Corporation as the executing agency reflects broader questions about funding channels and accountability mechanisms for reconstruction. The stalled funds have heightened pressure on lawmakers and diplomats to clarify roles and expedite support while safeguarding oversight.
Officials, both in Washington and Kyiv, face a constrained set of options: move funds through agencies with vestigial authority, create new implementing arrangements, or accept further delays while interagency processes are reconciled. Sources said these discussions are ongoing, but provided no timetable for when the funds might be released.
What is known
- Hundreds of millions of dollars in U.S. energy assistance for Ukraine remain unreleased.
- The funds were intended to support LNG imports and rebuild energy infrastructure damaged by Russian strikes.
- USAID had notified Congress of plans to disburse at least some of the funds during the Biden administration; the agency was effectively shuttered in the opening weeks of the Trump administration.
- Debate within the U.S. government exists over whether the State Department or the Development Finance Corporation should disburse the funds.
- At least one estimate values the stalled assistance at roughly $250 million, while Ukraine’s presentation to diplomats identified about 675 million euros in unfunded energy needs.
Officials and diplomats continue to press for clarity on execution and oversight while Ukraine copes with recurring outages, severe cold, and damaged energy infrastructure.