Zelensky looks to domestic, EU funders for key projects amid US aid freeze

President Volodymyr Zelensky has directed the government to identify domestic and European funding sources for key projects in energy infrastructure, veterans' affairs, and border checkpoints during the 90-day freeze on U.S. foreign aid.

U.S. President Donald Trump signed an executive order on his inauguration day suspending foreign assistance programs for 90 days, jeopardizing many critical humanitarian aid projects in Ukraine.

"I have already instructed some key things to be done at our own expense, as well as to talk to the Europeans," Zelensky said on Jan. 29, following an initial report on suspended U.S.-funded programs in Ukraine.

The president on Jan. 28 ordered government officials to review and report on the state of these programs.

Following the initial report, Zelensky said the government was prioritizing programs concerning the energy sector, military veterans, and border crossings. The president also mentioned issues with the Health Ministry and cybersecurity.

"We are dealing with all this," he said.

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According to Zelensky, U.S. funding supports many energy "resilience programs" in Ukrainian cities and villages. Ukraine's energy sector is struggling to rebuild in the face of targeted Russian attacks on critical infrastructure.

In December 2024, Russia carried out one of its largest assaults on Ukraine's electric grid, launching 90 missiles and 200 drones against the country's thermal power plants. The announcement of Trump's aid freeze sparked fears that it would help Russia's efforts to destroy the power grid.

"Does that mean that we will abandon Ukraine in the middle of winter? Because USAID has been providing critical funding for the rebuilding of their electric grid every time Russia attacks it," U.S. Senator Chris Coons said in response to the order.

Regarding veterans, Zelensky said U.S. aid funded veteran hubs, support lines, and other projects, including a program that helped veterans start their own businesses. U.S. funding also contributed to the modernization of border crossings in Ukraine.

"New modern checkpoints are built to make economic activity faster and the work of customs officers more transparent," the president said.

Zelensky said that Ukraine and European partners needed to work together to cover the funding gaps over the next 90 days. The announcement comes as Ukrainian lawmakers say they are consulting with European counterparts on temporarily replacing U.S. aid.

"(T)here should be more of our and European activity in the humanitarian, security, and social areas," Zelensky said.

"We need to support people now, while a new American policy is being developed."

The pause on foreign aid does not apply to military assistance to Ukraine. U.S. Secretary of State Marco Rubio also signed a waiver on Jan. 28 that grants "life-saving humanitarian assistance" an exception to the pause.

The exception applies to "core life-saving medicine, medical services, food, shelter, and subsistence assistance, as well as supplies and reasonable administrative costs as necessary to deliver such assistance," according to the waiver.

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