Suspension of USAID funding could have negative impact on domestic producers – Denys Marchuk

The suspension of USAID funding could have a negative impact, especially on small and medium-sized producers in Ukraine.

This concern was expressed by Denys Marchuk, Deputy Head of the All-Ukrainian Agrarian Council, during a briefing at the Media Center Ukraine.

“The indefinite suspension of USAID project funding would have a very negative impact on domestic producers. Many small and medium enterprises have relied on this program. For small businesses, the program provided support for the purchase of seeds, fuel, mineral fertilizers, and crop protection products. For medium enterprises, many relied on the guarantees provided by the program to modernize their production. This modernization has been crucial, especially considering the labor shortage and the need to implement new technologies to sustain operations,” Marchuk said.

According to him, some producers are already experiencing additional financial burden due to the suspension of the program.

“There are cases all over Ukraine where companies planned to purchase equipment worth tens of millions of hryvnias with the help of grants. Manufacturers made these purchases with the expectation that the grant would reimburse them, but the grant ceased to exist. As a result, they are now facing an unexpected financial burden on top of their existing operating costs,” Marchuk added.

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