Western donors may withhold $375 million in aid to Ethiopia's government, following the crackdown on opposition leaders and journalists.
The World Bank, European Union and Britain plan to disburse the money through aid organizations, rather than directly to the government, to address the country's widespread poverty.
The government's crackdown followed clashes between security forces and protesters last month in which at least 46 people were killed. The violence erupted during anti-government protests against alleged fraud in last May's parliamentary elections, won by Ethiopia's ruling party.
Recently the European Parliament and members of the U.S. Congress had urged their leaders to withhold money from the Ethiopian government to protest what they say are human rights abuses.
