Congress on Thursday took a step towards allowing Ukraine to delay payments on the hundreds of billions of dollars it has borrowed from the US, European nations, and others around the world.
The National Defense Authorization Act (NDAA) for fiscal year 2023 passed the House Thursday afternoon in a 350-80 vote. Included in that 4,400-page bill is a section on “Ukraine Debt Payment Relief.”
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That section says the US treasury secretary will instruct US representatives of international financial institutions to “use the voice, vote, and influence of the United States to advocate that the respective institution immediately provide appropriate debt service relief to Ukraine.”
It instructs Treasury to commence “immediate efforts” with other governments and commercial creditors to “pursue comprehensive debt payment relief for Ukraine.”
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The language talks only about debt payment relief, and not forgiveness of the assistance given to Ukraine this year to defend itself from Russia’s invasion.
The US is by far the largest contributor of aid to Ukraine, in the form of weapons, equipment, logistics support, training and other aid to the war-torn country. The US has also provided billions of dollars in economic support to Ukraine, enough to account for a majority of Ukraine’s annual budget.
A bill passed earlier this year gave Ukraine $4.5 billion to allow Ukraine to “maintain macroeconomic stability and provide basic citizen services.”
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Last month, the Biden administration asked Congress for another $37.7 billion in support for Ukraine. If that passes, Congress will have approved more than $100 billion in Ukraine-related spending, although not all of that money went to Ukraine – for example, billions of it is being used to replenish US weapons stocks.
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Still, any international plan to relieve Ukraine of debt payments or to eventually forgive the debt will affect the US more than any other nation.
The legislation approved by the House includes several other Ukraine-related provisions including extending US security aid to Ukraine through 2023, a joint military trauma care and research agreement between the US and Ukraine, and ongoing short- and medium-term aid to the country.