During a traditional press briefing at the Pentagon, Deputy Press Secretary of the U.S. Department of Defense, Sabrina Singh, announced a recalculation of the actual value of assistance provided to Ukraine. According to the statement, for 2023 the final calculation is $3.6 billion and for 2022 it is $2.6 billion, for a combined total of $6.2 billion.
However, this only concerns the Presidential Drawdown Authority (PDA) program, through which weaponry is transferred to the Armed Forces of Ukraine from the U.S. military stockpiles. Under this program, Ukraine has already received armaments worth $20 billion and the miscalculation of the value amounts to a significant 28%.
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Out of $6.2 billion, $2.6 billion corresponds to the previous fiscal year 2022 (in the United States, fiscal year begins on October 1). For that year, Ukraine received $8.6 billion for the PDA (Presidential Defense Assistance), with a discrepancy of 30%. In the fiscal year 2023, the size of the PDA amounted to $13.4 billion, out of which the calculation error of the weapon cost is $3.6 billion or 26.8%.
The Pentagon also explained the reason for the calculation error in the cost by stating that they used a mechanism where the replacement cost of the equipment was considered instead of its actual value at the time of transfer based on book value.
In simpler terms, the price of a projectile, which was hypothetically produced in 2010, was calculated as the cost of ordering a new projectile in 2022 or 2023. This difference can now easily exceed not just 30% but 50% or even more. While the situation with a direct analog of weaponry is somewhat understandable, using such a calculation mechanism for equipment that is no longer produced, for example, the transfer of the M113 APC will result in an even greater error.
And in this situation, it is very good that the error on the part of the U.S. government actually benefits Ukraine and most importantly, it is acknowledged. And now, as emphasized at the Pentagon, these funds remain active, which means that additional funds must be allocated to the Armed Forces of Ukraine by the end of September through the fastest support program, where weaponry is practically transferred immediately.
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