The US overestimated the amount of aid to Ukraine by $2 billion due to an accounting error

The Pentagon discovered errors in the assessment of military aid sent to Ukraine. The declared amount of $8.2 billion exceeded the real amount by $2 billion.

Reuters writes about this with reference to the report of the US Government Accountability Office (GAO).

The US Department of Defense has faced challenges in accurately valuing defense supplies due to unclear accounting definitions.

This has happened before, with the Pentagon saying in 2023 that staff used replacement value to estimate military aid, rather than the cost of weapons at the time of purchase, including depreciation. Then the mistake opened the way for sending billions of dollars more in aid to Kyiv.

Since then, the Pentagon has discovered another $2 billion in overcharges. As a result, additional weapons for this amount can be sent to Ukraine.

The Office notes that the vague definition of value in the Foreign Aid Law and the fact that the Presidential Administration did not provide specific guidance on valuation led to inconsistencies in the reporting of the value of military aid.

Hereʼs one example given in the report: 10 vehicles were valued at $7 million, when the accompanying documentation indicated they should have been valued at zero, i.e. at their residual value.

The Office recommended that Congress clarify the definition of value in the context of defense goods within the Presidentʼs arms reduction authority.

• The most recent US aid package was announced on July 11, and was valued at $225 million. It contains a Patriot air defense battery, as well as anti-aircraft (NASAMS, Stinger) and anti-tank (TOW) missiles, ammunition for HIMARS and other weapons.