The Ministry of Finance of Ukraine and the World Bank have signed an agreement to provide grant funding totaling USD 690.8 million. The funds were raised under the project “Public Expenditure Support for Sustainable Governance in Ukraine” (PEACE in Ukraine).
The funds are part of the G7 countries’ Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism, which amounts to USD 50 billion. This grant represents the final tranche from Canada under the instrument and the first from Japan.
The signatories of the grant agreement were Serhiy Marchenko, Minister of Finance of Ukraine, and Bob Som, Regional Director for Eastern Europe at the World Bank. The signing ceremony was also attended by Masashi Nakagome, Ambassador of Japan to Ukraine, and Christian Roua, Deputy Head of the Canadian Embassy Mission in Ukraine.
The grant funds will soon be transferred to the general fund of the State Budget of Ukraine. They will be allocated to cover key state expenditures, including pension payments and the implementation of social assistance programs, such as housing and utility subsidies.
The grant contributions are as follows:
- USD 544 million – contribution from the Government of Japan
- USD 146 million – contribution from Canada
- USD 0.8 million – funds from the Multi-Donor Trust Fund of the PEACE in Ukraine project
The PEACE in Ukraine project has been implemented since June 2022 in response to Russia’s full-scale armed aggression against Ukraine. It aims to ensure the continuous operation of key state functions at both national and regional levels under martial law. After receiving this grant, the total funding mobilized under PEACE in Ukraine will reach USD 51.7 billion.
“I am grateful to the World Bank, as well as the Governments of Japan and Canada, for this grant support. These funds will increase revenues to the general fund of the state budget and reduce the need for external borrowing. At the same time, they will strengthen macro-financial stability, reduce debt burdens, ensure timely social payments, and maintain the uninterrupted functioning of state institutions,” said Serhiy Marchenko, Minister of Finance of Ukraine.
