Pentagon reveals accounting errors in $2 billion in aid to Ukraine

The US Department of Defense has encountered difficulties in accurately assessing the defense articles sent to Ukraine due to unclear accounting definitions, as highlighted in a new report by the Government Accountability Office (GAO).

In 2023, the Pentagon disclosed that personnel had used "replacement cost" instead of "depreciated cost" to calculate the value of billions of dollars worth of materials sent to Ukraine. This $6.2 billion error created the possibility of sending Kyiv additional billions of dollars.

The Pentagon informed the GAO that a further $2 billion in overestimations had since been identified. Consequently, an additional $2 billion worth of weaponry could be sent to Ukraine to cover the aid volume approved by President Joe Biden's administration.

According to the GAO, vague cost definitions in the Foreign Assistance Act and the lack of specific guidance on assessing presidential drawdown authority led to inconsistencies in the data on the cost of military aid.

One example from the GAO report cited 10 vehicles valued at $7,050,000, while the supporting documentation indicated they should have been valued at zero—their net book value.

The GAO recommended that the US Congress clarify the cost definitions for defense items under the presidential drawdown authority.

Additionally, the GAO issued seven recommendations for the Department of Defense, urging it to update its handbook to include an assessment section for drawdowns and to develop evaluation procedures for specific components. The department stated that it agreed with all recommendations and had outlined actions to address these issues.

US assistance to Ukraine

The US began providing military aid to Ukraine before the full-scale Russian invasion and continues to do so. However, a significant hiatus in American support for Ukraine occurred during the winter due to financial constraints.

It wasn't until the end of April that the US Congress approved over $60 billion to cover American expenses related to aid for Ukraine. From this package, around $14 billion is allocated for the procurement of advanced weapons systems, defense products, and services for Ukraine.

For more information on the assistance Ukraine has received from the US during the full-scale war, read the RBC-Ukraine article.