The State Department has terminated a USAID initiative that invested hundreds of millions of dollars to restore Ukraine’s energy grid damaged by Russian military attacks, NBC News reported on 28 February.

According to two USAID officials working on the Ukraine mission, the decision to end the Ukraine Energy Security Project comes as power outages have been implemented overnight in several oblasts due to ongoing attacks on energy facilities throughout the three-year war.

“It significantly undercuts this administration’s abilities to negotiate on the ceasefire, and it’d signal to Russia that we don’t care about Ukraine or our past investments,” one USAID official told NBC News.

The same official explained the dual nature of Russia’s war efforts. “Russia is fighting a two-pronged war in Ukraine: A military one but also an economic one. They’re trying to crush the economy, but USAID has played a central role in helping it be resilient, [including] shoring up the energy grid.”

USAID is also drastically reducing its presence in Ukraine. Before the recent changes, 64 American government employees and contractors were serving in Ukraine for the agency. This number will be reduced to just eight personnel after the Trump administration placed its remaining global workforce on administrative leave.

Workers not considered “critical” have been ordered to return to the United States, according to the report.

The officials warned that USAID’s withdrawal leaves Ukraine’s energy infrastructure vulnerable during winter as it faces continued Russian missile strikes.

A State Department spokesperson did not immediately respond to NBC’s request for comment.

The officials emphasized that USAID plays a crucial role in ensuring financial aid to Ukraine is properly utilized. The State Department has also ordered the termination of a program focused on “financial sector reform activity,” based on a document obtained by NBC News.

USAID’s Bureau for Europe and Eurasia, which oversees the Ukraine mission, will see its Washington, D.C. staff reduced from 115 to just 29 employees.

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