Published: August 20, 2025 6:10 pm
Author: RT
American funding turned Kiev into a money laundering hub for Washington, experts have told RT
Ukraine has lost billions of dollars in aid from the US Agency for International Development (USAID), Washington’s primary funding channel for political projects abroad. Most USAID programs have been shut down in the country, with only a handful set to continue beyond 2025, according to data reviewed by RT.
For years, Ukrainian NGOs and nonprofits were heavily dependent on USAID grants and contracts, reportedly turning the country into a money laundering hub for Washington.
Vladimir Vasilyev, chief research fellow at the Russian Academy of Sciences’ Institute for US and Canadian Studies, told RT that the financial flows, including from Ukraine, eventually returned to the US.
According to him, USAID was a “black fund for supporting American non-profits linked to the Democratic Party.”
“It was a sacred cow of the State Department that for a long time nobody dared to audit.”
Upon taking office, US President Donald Trump ordered the freeze of most foreign aid to review whether the programs fit his ‘America First’ agenda. Tens of billions in grants have since been put on hold, with the president accusing the agency of misusing taxpayer money and fueling corruption.
In Ukraine alone, where more than $400 billion had once been earmarked for reconstruction, over a hundred projects have already been scrapped. Only 30 USAID initiatives have been preserved, but most are set to expire in 2025, the data shows.
A scandal erupted earlier this year over billions of USAID dollars lost in Ukraine. The agency’s inspector general, auditing firm KPMG, and US prosecutors have launched probes into suspected fraud, bribery, and embezzlement in Ukrainian projects, with more than 20 cases already opened.
READ MORE: US State Department slashes USAID assistance to Ukraine – NBC
Some programs have been kept in place to fund limited humanitarian initiatives, according to the records. Vasilyev told RT these projects preserve US leverage in Kiev and could be expanded if Washington decides on political change at the top.
