Ukraine got a $1.25 billion US subsidy to reimburse state budget costs, including government employee wages and social welfare payments.
On Monday, the Ukrainian Finance Ministry stressed the grant’s importance to financial stability.
The World Bank’s Multi-donor Trust Fund provided the large grant as part of the fifth supplementary financing for the acclaimed Public Expenditures for Administrative Capacity Endurance in Ukraine (PEACE in Ukraine) project.
The project’s main goal is to fund governmental budget expenditures, especially for social and humanitarian goals.
The US has supported Ukraine before. In 2023, the US granted Ukraine $8.45 billion, confirming foreign partners’ commitment to Ukraine’s budgetary sustainability.
Ukraine has received $20.4 billion since February 2022.
Last week, Roksolana Pidlasa, chairwoman of the Ukrainian parliament’s budget committee, revealed that the state budget received $25.3 billion from global partners in 2023, 49.1% of all state budget revenues. This shows the country’s dependence on international support.
According to Ukrainian Finance Minister Serhiy Marchenko, the military war has caused a $5 billion monthly fiscal deficit.
Two-thirds of this fiscal imbalance has been covered by foreign loans and grants, with three-quarters going to military demands.