Dmitry Kuznetsov on cutting US aid to Central Asia

Dmitry Kuznetsov, Researcher of the International Trade Department at the Gaidar Institute, commented to TASS on the main conclusions of the study maid by experts of the Gaidar Institute on the expected US aid reduction to Central Asia (ref. «Monitoring of the Russia’s economic situation» No.7(189) April 2025).

The study emphasizes that US President Donald Trump’s decisions to cut aid to Ukraine and close USAID have raised concerns about the future of US funding for Central Asia. Nevertheless, Dmitry Kuznetsov expressed confidence that a significant reduction in external financing in the region is not expected, given the activity of other multilateral and bilateral development partners.

"In the near future, it is expected that US aid to Central Asia may decline, but this does not mean that the overall level of funding to the region will be reduced. Moreover, demand from recipient countries will play a key role in determining the amount of funding," Dmitry Kuznetsov said in his commentary.

The expert noted that there are more than 60 bilateral and multilateral development partners in the Central Asian region, including non-OECD countries. This indicates that funding will be sustained through the efforts of the entire donor community. Particular attention is paid to the diversity of funding strategies, where some donors such as Sweden, Norway and Finland prefer multilateral channels, while Germany remains the leader among OECD donors in terms of ODA through international organizations.

Thus, the study and Dmitry Kuznetsov’s commentary indicate the stability and diversity of funding sources in Central Asia, despite potential reductions in US aid.


Saturday, 26.04.2025