Business Standard

An accounting error by US frees up arms worth $6.2 billion for Ukraine

The United States said that the valuation errors did not limit Washington's provision of support to Ukraine

US, Ukraine, Pentagon, military aid

Representative Image

BS Web Team New Delhi

Listen to This Article

The United States (US) has overestimated the value of the weapons it has sent to Ukraine by $6.2 billion over the past two years – about double the early estimates – resulting in a surplus that will be used for future security packages.

During an audit, “inconsistencies” were found in valuations of equipment sent from the US since the Kremlin’s full-scale invasion of Ukraine in 2022, said deputy Pentagon press secretary Sabrina Singh on Tuesday.

“In a significant number of cases, services used replacement costs rather than net book value, thereby overestimating the value of the equipment drawn down from US stocks and provided to Ukraine,” Singh said.

The spokeswoman said that the calculation for the 2022 and 2023 financial years combined added up to $6.2 billion.

Singh emphasised that the "valuation errors" did not limit Washington's "provision of support to Ukraine."

As a result, the department now has more money in its coffers to aid Ukraine in its counteroffensive against Russia. And it comes as the fiscal year comes to an end and congressional funding begins to dwindle.

“It’s just going to go back into the pot of money that we have allocated for the future Pentagon stock drawdowns,” said Singh.

The revelation comes as Ukraine moves forward with the early stages of its counteroffensive to drive the Kremlin's forces out of territory they have occupied since a full-scale invasion in February 2022.

Valerii Zaluzhnyi, commander in chief of Ukraine's armed forces, said that the counteroffensive has come up against heavily mined terrain and reinforced defensive fortifications.

Based on previous estimates released on June 13, the US has committed more than $40 billion in security assistance to Ukraine since Russia's invasion. According to the new calculation, the US has actually provided less than $34 billion in aid.

The aid has included a wide range of military equipment such as air defence systems, anti-tank munitions, long-range rocket systems, suicide drones and armoured personnel carriers.

(With agency input)

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jun 21 2023 | 7:56 PM IST

Explore News