Ukraine will receive grant funding of $690.8 million thanks to an agreement signed between the Ministry of Finance of Ukraine and the World Bank. The funds are part of the project “Support for Public Expenditures to Ensure Sustainable Governance in Ukraine” (PEACE in Ukraine).
This is reported by Finway
Funding Sources and Allocation
Under the Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism, implemented by G7 countries with a total budget of $50 billion, this new tranche is the last for Canada and the first for Japan. The grant funds will soon be directed to the general fund of the State Budget of Ukraine.
The funding consists of:
- $544 million – contribution from the Government of Japan,
- $146 million – contribution from the Government of Canada,
- $0.8 million – funds from the Multi-Donor Trust Fund for the PEACE in Ukraine project.
Allocation of Funds and Project Significance
The allocated funding is intended to compensate for key state expenditures, including ensuring pension payments and implementing state social assistance programs, including housing and utility subsidies.
“The funds will be directed to reimburse key state expenditures, including pension payments and the implementation of state social assistance programs, particularly for housing and utility subsidies.”
The PEACE in Ukraine project was launched in June 2022 in response to the full-scale armed aggression of the Russian Federation against Ukraine. Its goal is to ensure the continuous performance of essential state functions at both national and regional levels under martial law. Following the receipt of this grant, the total funding for the project will reach $51.7 billion.