Foreign financial aid for Ukraine fell to $1.7B in April after record inflows in March.

According to experts from the Centre for Economic Strategy (CES), after the record-high receipt of foreign aid in March ($9B), in April aid decreased to $1.7B. Ukraine received a $1.6B loan from the EU and a $118M grant from Japan. In addition, the US Congress approved a large aid package for Ukraine, which includes $8B in budget support but now in the form of a loan, not a grant.

“These funds will arrive in 2024 and help close the budget gap,” the experts add.

Foreign receipts in March fully covered the budget shortfall and the need to repay debts for the month and compensated for the lack of funding in the previous two months of the year.

“However, the record amount came from several donors (primarily Japan and Canada) approaching their payments that were made closer to the beginning of the year. Accordingly, the challenge of non-rhythmic aid will remain in the coming months, which will be impossible to overcome without receiving budgetary aid from the US,” concluded the CES.