The Ministry of Finance of Ukraine and the World Bank have signed an agreement to provide Ukraine with a grant of $690.8 million. The funding will be carried out under the project “Support for Government Expenditures to Ensure Sustainable Governance in Ukraine” (PEACE in Ukraine).
This is reported by Business • Media
Funding from Revenues of Frozen Russian Assets
The grant funds are part of the Extraordinary Revenue Acceleration for Ukraine mechanism, which was initiated by the G7 countries and aims to raise $50 billion from revenues generated from frozen Russian assets. The new tranche will be the last contribution from Canada under this initiative, as well as the first from Japan. It is expected that these funds will be transferred to the state budget of Ukraine in the near future.
Composition of Funding and Purpose of the Grant
The total amount of the grant includes $544 million from Japan, $146 million from Canada, and $0.8 million from the Multi-Donor Trust Fund for the PEACE in Ukraine project. The received funds will be directed towards financing key government expenditures, including pension payments and the implementation of social assistance programs.
“The funding is part of the Extraordinary Revenue Acceleration for Ukraine mechanism from the G7 countries amounting to $50 billion, which is provided by revenues from frozen Russian assets. This will be the last tranche from Canada under this instrument and the first from Japan. The funding will be transferred to the state budget of Ukraine in the near future.”
After receiving this grant, the total amount of funding raised under the PEACE in Ukraine project will reach $51.7 billion.