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Is Ukraine sleepwalking into a debt trap and a proxy war?
Freddie Reidy
The final vote of 86-11 as the Senate overwhelmingly approved a $40 billion infusion of military and economic aid for Ukraine and its allies in Washington, May 19, 2022. /CFP

The final vote of 86-11 as the Senate overwhelmingly approved a $40 billion infusion of military and economic aid for Ukraine and its allies in Washington, May 19, 2022. /CFP

Editor's note: Freddie Reidy is a freelance writer based in London. He studied history and history of art at the University of Kent, Canterbury, specializing in Russian history and international politics. The article reflects the author's opinions, and not necessarily the views of CGTN.

In a week in which the U.S. Congress approved a landmark $40 billion Ukrainian aid package, we must ask ourselves whether Washington is fighting a proxy war in Ukraine and what the financial consequences are for Ukraine.

Democratic Majority House Leader Chuck Schumer stated that the $40 billion package was a "large package, and it will meet the needs of the Ukrainian people as they fight for their survival." While funds will be well received in the short term in Kyiv, there remain questions over the intention in the longer term.

Indeed, outside the clear parameters set by Secretary of State Anthony Blinken, the White House appears to be sending mixed messages. U.S. President Joe Biden's infamous proclamation that "Putin should not remain in power" sent alarm bells ringing over a U.S. desire for government change.

These fears were compounded by Secretary of Defense Lloyd Austin's comment that he wished to see Russia "weakened to the degree that it cannot do the kinds of things that it's doing in invading Ukraine."

Despite President Biden's unscripted emotional proclamation which he later claimed he made "no apologies" for, the White House has remained resolute that the situation in Ukraine has not degenerated into a proxy war. Outgoing Press Secretary Jen Psaki was typically blunt in asserting that "This is a war between Russia and Ukraine. NATO is not involved. The U.S. is not fighting this war."

Secretary of Defense Lloyd Austin speaks with reporters after a virtual meeting of the Ukraine Defense Contact Group at the Pentagon in Washington, May 23, 2022. /CFP

Secretary of Defense Lloyd Austin speaks with reporters after a virtual meeting of the Ukraine Defense Contact Group at the Pentagon in Washington, May 23, 2022. /CFP

However, despite such assertions from the White House, concerns remain. It may be the case that the Biden administration believes that it is merely facilitating the Ukrainian government in defending its sovereign territory but many such as former Congresswoman Tulsi Gabbard believe that the situation has developed beyond that point: "(Biden) has already gotten us into a war with Russia and not just a cold war, but a hot war and they're using Ukraine as our proxy."

Professor Norman Naimark of Stanford University takes a different view though, "A proxy war is when someone who is fighting is doing your bidding…" but in this case "they're not fighting for us (the U.S.), they're fighting for themselves."

Despite a motivation of maintaining sovereign borders, is Ukraine sleepwalking into a debt crisis? U.S. military aid to the Eastern European country has now surpassed that to both Israel and Egypt, what does this mean for the nation's long-term prospects?

As of 2020, Ukraine was the poorest country in Europe by GDP per capita. Since the Crimea's reunification with Russia in 2014, Kyiv has borrowed $61 billion from foreign lenders, according to the Jubilee Debt Campaign, and the repayments in 2022 alone totaled $7.3 billion. The country, therefore, already faced dramatic economic headwinds, which have now spiraled out of control as the conflict and cost of rebuilding escalate.

If Western aid to Ukraine is in the interests of a nation's sovereignty, then such support must be offered without the strings of financial or political influence. Either the White House's official line is policy, or Lloyd Austin's ambition for a weakened Russian military is the objective, the Biden administration cannot have its cake and eat it.

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