EXCLUSIVE-US to announce final package of new arms for Ukraine in coming days, sources say

By Mike Stone

WASHINGTON, Dec 20 (Reuters) - The Biden administration will announce in the coming days its final Ukraine Security Assistance Initiative package, using up the remaining funds set aside to buy new weapons for Ukraine, according to two sources familiar with the matter.

The package includes air defense interceptors and artillery munitions, according to a third source, but the exact contents are expected when the package is announced in the coming days. The package will be worth about $1.2 billion, said the sources.

Under USAI, military equipment is procured from the defense industry or partners, rather than drawn from American stocks, meaning it can take months or years to arrive on the battlefield.

The USAI package could be among the last steps the United States takes to provide direct military support to Ukraine as Kyiv braces for the return of President-elect Donald Trump, who has publicly questioned military aid and vowed to end the Ukraine war within 24 hours of taking office on Jan. 20.

Since Russia's invasion of its neighbor in February 2022, the United States has committed $175 billion in aid for Ukraine, including approximately $61.4 billion in security assistance.

About half of that security assistance has come through the USAI program, and the rest has gone toward pulling from existing military stocks via presidential drawdown authority.

There is $5.6 billion remaining of presidential drawdown authority.

The State Department and Pentagon declined to comment on the upcoming announcement, saying they do not discuss security assistance packages before they are officially revealed.

The USAI program has been a boon for U.S. defense contractors, who have been able to book orders for newly manufactured weapons and establish new revenue streams.

One example is the L3Harris Technologies LHX.N VAMPIRE system. The Vehicle-Agnostic Modular Palletized ISR Rocket Equipment counter-drone system received its first USAI-funded order in August 2022.

L3Harris delivered its first four units within 12 months. The company has seen increased interest in the system, and has subsequently had multiple orders placed through the USAI program.

As the Biden administration prepares to unveil details of the final USAI package, questions remain about how and whether the United States will continue to assist its ally in the absence of dedicated USAI funding.

During his campaign, Trump repeatedly questioned the level of U.S. involvement in the conflict, suggesting European allies should bear more of the financial burden. Some of his fellow Republicans - who will control both the House of Representatives and Senate starting next month - have also cooled on aid to Kyiv.

This stance - despite strong past support in the U.S. Congress for sustained or expanded support for Ukraine - has raised concerns among Ukraine's supporters in Washington about the future of U.S. assistance under a Trump administration.

(Reporting by Mike Stone in Washington; Editing by Don Durfee and Rod Nickel)

((mike.stone1@thomsonreuters.com; https://twitter.com/MichaelStone;))