The Ministry of Finance of Ukraine and the World Bank signed an agreement on the provision of grant financing from Japan and Canada for a total amount of almost 691 million US dollars.
Points of attention
- Ukraine signed an agreement with the World Bank for grant financing totaling nearly $700 million from Japan and Canada.
- The funds, sourced from frozen Russian assets, will support public expenditures and sustainable governance in Ukraine.
- The Extraordinary Revenue Acceleration for Ukraine mechanism ensures the receipt of $50 billion from revenues from frozen assets of the Russian Federation.
Ukraine will receive new grants from frozen Russian assets
The funds were raised within the framework of the project "Supporting Public Expenditures to Ensure Sustainable Public Governance in Ukraine" (PEACE in Ukraine).
The financing is part of the Extraordinary Revenue Acceleration for Ukraine mechanism of the G7 countries (from revenues from frozen Russian assets) with a total volume of $50 billion.
This is the last tranche from Canada under the mechanism, and the first from Japan.
Grant funds will be provided through contributions from international partners:
544 million US dollars — contribution from the Government of Japan;
146 million US dollars — Canada's contribution;
0.8 million US dollars — funds from the PEACE in Ukraine Multi-Donor Trust Fund.
Grant funding will be transferred to the general fund of the state budget of Ukraine in the near future.
The funds will be used to reimburse key state expenditures, in particular, to reimburse pension payments and implement state social assistance programs, in particular, housing and communal subsidies.
