Ukraine is set to receive a substantial grant from the United States, amounting to nearly $3.9 billion, which will soon be added to the country's state budget. The agreement was signed by Ukrainian Finance Minister Serhiy Marchenko and Bob Som, Regional Director of the World Bank for Eastern Europe (Belarus, Moldova, and Ukraine).
"Effective government operations, combined with significant support from international partners, help ensure the stability of our financial system amid the full-scale armed aggression by Russia against Ukraine. I am grateful to the U.S. and the World Bank team for their cooperation, which has mobilized critically important resources. This funding is essential and timely for maintaining the liquidity of our state budget," stated Ukrainian Finance Minister Serhiy Marchenko.
The funds will be allocated towards salaries for teachers, emergency service personnel (State Emergency Service), government employees, and essential social expenditures, including support for internally displaced persons, low-income families, and individuals with disabilities.
This grant represents the first tranche of direct budgetary support from the United States for 2024, with a planned total financial aid of $7.8 billion for the year.
The funds will be disbursed through the "Public Expenditure for Accountable and Comprehensive Economic Management in Ukraine" (PEACE in Ukraine) project, a key financial instrument of the World Bank designed to support Ukraine. Since the beginning of Russia's full-scale invasion, the project has coordinated international donor efforts to provide critical support to the Ukrainian government.
Since June 2022, the PEACE in Ukraine project has already channeled over $25 billion into the state budget. This new agreement will increase the project's total budgetary support to nearly $30 billion, with more than 80% of these funds coming from the United States.
