Mar 29 2024: Ukraine has successfully obtained a $1.5 billion tranche of funding under a World Bank programme, announced Prime Minister Denys Shmyhal on Friday. This funding infusion comes as Ukraine continues to grapple with the financial strains of defending itself against the ongoing Russian invasion.
The reliance on financial aid from Western partners has been crucial for Ukraine, especially as foreign financing saw a decline in the initial months of this year. Additionally, a long-pending U.S. aid package has faced obstacles in Congress, delaying much-needed support for the country.
In March alone, Kyiv managed to secure approximately $9 billion in external financing, with contributions from key donors such as the European Union, Canada, Japan, the International Monetary Fund (IMF), and Britain. The latest tranche from the World Bank was funded by Britain and Japan, with Japan providing $984 million and the UK contributing $516 million. These funds will be utilized to cover budgetary expenses related to social, humanitarian needs, and reconstruction efforts.
Earlier in March, Ukraine also received a substantial 4.5 billion euro ($4.9 billion) first tranche of aid from the European Union under a bridging finance programme.
The significant portion of Ukraine’s own revenues is allocated towards financing its defense operations since the invasion in February 2022. As a result, external financial assistance plays a critical role in supporting Ukraine’s social spending priorities.
The Finance Ministry highlighted that in 2024, total external financing reached $10.2 billion, with the overall assistance since the start of the conflict amounting to $83.8 billion. This international aid is specifically targeted towards funding essential social expenditures outlined in Ukraine’s state budget.