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22 Jun. 2023

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Pentagon accounting error: how it will affect the transfer of US weapons to Ukraine

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Pentagon accounting error: how it will affect the transfer of US weapons to Ukraine

According to the latest comments from Pentagon officials, the accounting error that was revealed last month is much larger than previously thought. Find out how the Pentagon reacted and how their military support will change

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On Tuesday, June 20, the Pentagon announced that the accounting error discovered last month was significantly higher than the previously announced amount. Thus, the aid provided to Ukraine was overestimated at $6.2 billion instead of $3 billion. Let's find out what caused the accounting error and how it will affect Ukraine's cooperation with the United States.


We talked about which countries transfer weapons publicly and which ones hide the supply of military aid here


How was the accounting error made?


According to Deputy Pentagon Press Secretary Sabrina Singh, the accounting error occurred because when transferring weapons to Ukraine, military officials took into account the cost of replacing the weapons, i.e., the "replacement cost," instead of their net book value. This significantly increased the cost of each new aid package, as new weapons are more expensive than old ones, and as a result, led to a false assumption about the amount of money invested in military support for Ukraine.


We wrote more about US military aid here.


Accounting error: report for 2022-2023


The final recalculation of the accounting error, which was recorded in May, showed that it amounted to $2.6 billion for fiscal year 2022 and $3.6 billion for fiscal year 2023. That is, the total amount of the US Department of Defense's accounting error was $6.2 billion.




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How did the US comment on the situation?


U.S. Republicans on the House Foreign Affairs and Armed Services Committees were disappointed with the accounting error, as it means that the United States provided significantly less military support to Ukraine on the eve of the counteroffensive.


In addition, they believe that the US should not have distributed the identified surplus funds until the end of the fiscal year, and should have made additional supplies of weapons and equipment to encourage a faster and more successful de-occupation of Ukrainian territories.


Read more about the situation at the front and the Ukrainian counteroffensive here.


How will the revaluation of weapons affect further assistance to Ukraine?


According to a representative of the US Department of Defense, the funds that were discovered during the recalculation of the accounting error will be added to the total amount allocated for Ukraine. This means that in the near future, the White House will not need to go to Congress to approve a new financial aid package. This is important, as Congress tends to limit new funding before the end of the current fiscal year.


In addition, the Pentagon confirmed that the error does not affect further support for Ukraine and does not limit the number of weapons that will be transferred from US warehouses to the Ukrainian army.


We remind you, that the recent visit of African representatives from 7 countries to Zelenskyy and putin is an unprecedented historical event. We described the purpose and results of the visit, as well as the changes for Ukraine in our previous article.


Photo: Office of the President of Ukraine




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