The Ministry of Finance of Ukraine, together with the World Bank, has signed an agreement to provide Kyiv with grant funding amounting to $690.8 million. This funding will be made possible within the framework of the project “Support for State Expenditures to Ensure Sustainable Governance in Ukraine” (PEACE in Ukraine).
This is reported by Finway
Program Details and Funding Sources
The grant is allocated under the Extraordinary Revenue Acceleration for Ukraine mechanism, developed by the G7 countries with a total budget of $50 billion. The source of the funds is the income generated from the frozen assets of the Russian Federation. This tranche will be Canada’s final contribution through this instrument and Japan’s first under the respective program.
Funding is expected to flow into the state budget of Ukraine in the near future. The funds raised will be directed towards covering essential state expenditures, primarily for pension payments and supporting state social programs.
Grant Structure and Donor Contributions
The grant has been formed thanks to contributions from international partners: Japan has allocated $544 million, Canada $146 million, and an additional $0.8 million has been provided from the Multi-Donor Trust Fund for the PEACE in Ukraine project. Following this tranche, the total amount of funding raised under the project will reach $51.7 billion.
“The funds will be directed towards reimbursing key state expenditures, including pension payments and implementing state social assistance programs.”