US officials advocate for Ukraine exemption from Rubio's foreign aid freeze

US diplomats have urgently requested that Ukraine-related programs be exempted from a 90-day freeze on foreign aid ordered by Secretary of State Marco Rubio, as concerns grow over the potential impact on vital support for Ukraine.

US diplomats have urgently requested an exemption for Ukraine-related programs from a 90-day freeze on foreign aid and “stop work” orders issued by Secretary of State Marco Rubio, according to documents reviewed by the Financial Times and sources familiar with the matter.

Citing national security concerns, senior diplomats from the State Department’s Bureau of European and Eurasian Affairs have asked Rubio to grant a full waiver for the US Agency for International Development (USAID) programs in Ukraine, excluding them from the sweeping directive that took effect immediately after being issued on Friday.

“We do not know at this time whether this request will be approved — in whole or in part — but there are positive signals so far from Washington,” said an email sent to USAID staff in Ukraine on Saturday, reviewed by the FT.

USAID in Ukraine has temporarily halted issuing "stop work" orders while the exemption request is being considered, according to the email and officials from partner organizations. The agency has also asked staff to evaluate programs and explore ways to align them more closely with the secretary’s directive to enhance US safety, strength, and prosperity.

However, by Saturday evening in Kyiv, some organizations began receiving "stop work" orders. One shared order directed a contractor to immediately cease work under a USAID/Ukraine contract, stating that work would not resume until written notification from the Contracting Officer.

The State Department, USAID, and the US embassy in Kyiv did not respond to requests for comment.

In an internal cable sent to the State Department and USAID on Friday, Rubio instructed the suspension of all new foreign aid disbursements. Contracting and grant officers were directed to immediately issue stop work orders until the secretary completes a review, which could take up to 85 days. This leaves the fate of hundreds of US foreign aid contracts, worth over $70bn in the 2022 fiscal year, uncertain.

Officials and NGO staff in Ukraine, where the war with Russia will enter its fourth year next month, have warned that without a waiver, vital programs such as support for schools, hospitals, and infrastructure development could be at risk.

A program director at an NGO in Kyiv described the funding freeze as a potential “disaster” for their group and Ukraine.

While there are exceptions to Rubio’s order, such as military aid for Israel and Egypt, no exemption for Ukraine is mentioned in the cable. However, a Ukrainian government official confirmed to the FT that US military assistance is not part of the freeze order. "Military aid to Ukraine is intact," the official said.

Speaking at a press conference in Kyiv, President Volodymyr Zelenskyy confirmed that American arms continue to flow into Ukraine, with no interruption in military aid.

Since Russia's full-scale invasion of Ukraine on February 24, 2022, the US has provided $65.9bn in military assistance to Kyiv, according to State Department data.

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