Ukraine will receive a $3.9 billion grant from the United States in the near future. Minister of Finance of Ukraine Serhiy Marchenko and Regional Director of the World Bank for Eastern Europe Bob Som signed the relevant agreement
Points of attention
- Ukraine will receive a $3.9 billion grant from the United States to support social programs and pay salaries.
- The first tranche of direct budget support from the US in 2024 will amount to $7.8 billion.
- Aid from the US and the EU is a key financial instrument to help Ukraine stabilize public finances.
- The approval of tranches from the EU and the USA will open up new opportunities for the recovery and support of Ukraine's economic development.
What is known about the new US tranche for Ukraine
Raised funds will be used to pay salaries to teachers, first responders, and government officials, as well as to support priority social expenditures (aid payments to internally displaced persons, low-income families, and persons with disabilities).
This is the first tranche of direct budget support from the United States in 2024. The planned volume of financial aid from the US for the current year reaches 7.8 billion US dollars.
The funds will come through the project "Supporting public expenditures to ensure sustainable public administration in Ukraine." The project is a key financial instrument of the World Bank for assistance to Ukraine.
Through the PEACE in Ukraine project, more than 25 billion dollars have already been attracted to the state budget since June 2022. This agreement will increase the amount of budgetary support within the project to almost 30 billion dollars, of which more than 80% are funds from the United States
Ukraine will receive almost 4.2 billion euros from the EU
On July 24, the ambassadors of the countries of the European Union approved the tranche of Ukraine for 4.2 billion euros under the Ukraine Facility program.
The first tranche as part of the Ukrainian plan of the Regulation on the Ukraine Facility credit fund was approved, paving the way for the transfer of almost 4.2 billion euros to support the recovery, reconstruction and modernization of Ukraine, the message says.
The next step will be to approve this decision on the written procedure used for non-debatable steps.
