The suspension of funding from USAID has left approximately one third of all GovTech projects in Ukraine without resources.

This is reported by DOU, citing expert Roman Lansky's opinion.

"USAID has funded about a third of all GovTech through various projects. It might even be slightly more. All new initiatives are now halted, with funding only available for those implemented before January 24. Going forward, all contracts, including those with sole proprietors, will likely be on hold for three months. However, this is preliminary information and everything may change," Lansky noted.

According to Kitsoft, a company that develops and implements digital technologies for government agencies, this situation will lead to a slowdown in the country’s digital transformation. Companies will partially have to realign their efforts.

"We had planned a significant number of projects, particularly with the Ministry of Digital Transformation. Projects funded by USAID account for up to 30%, they are important but not the only ones. Therefore, our overall plans remain unchanged, though the growth rate will be slowed," commented Kitsoft CEO Oleksandr Yefremov.

Reminder:

On January 25, 2025, U.S. Secretary of State Marco Rubio issued an order suspending funding for most foreign aid programs, including support for Ukraine.

On January 16, 2025, the U.S. issued an order to halt all USAID projects in Ukraine following the State Department's directive to suspend assistance programs for 90 days for auditing..