Ukraine has recently received a significant boost in funding from the World Bank, as announced by Prime Minister Denys Shmyhal. This $1.5 billion tranche of aid will help the country cover its budget and social spending needs as it continues to defend itself against the Russian invasion. With foreign financing decreasing in the first two months of this year and a U.S. aid package blocked by Republicans in Congress for an extended period, Ukraine heavily relies on financial aid from its Western partners.
In March, Kyiv secured about $9 billion in total external financing, with contributions from various donors including Japan and Britain. The new block of aid from the World Bank was funded by these two countries, with $984 million coming from Japan and $516 million from Britain. The funds will be used to cover budget spending for social and humanitarian needs as well as for reconstruction efforts.
Earlier in March, Ukraine also received a 4.5 billion euro ($4.9 billion) first tranche of aid under a European Union bridging finance program. With most of its own revenues going towards defense efforts following the Russian invasion, Kyiv heavily relies on funding from Western partners to support its social spending. The Finance Ministry noted that external financing in 2024 had reached $10.2 billion, and since the start of the full-scale war, it had reached $83.8 billion.
International assistance is crucial for financing the country’s priority social expenditures outlined in the state budget of Ukraine.
“We are grateful for our partners’ continued support,” said Shmyhal during a press conference announcing the new funding tranche.”We need their help now more than ever.”
