The State Budget of Ukraine will receive a grant from the US totaling almost $3.9B after representatives from the Ministry of Finance of Ukraine and the World Bank signed a corresponding agreement. This is the US’ first tranche of direct budget support in 2024. The total planned amount of financial aid for the current year is $7.8B. The funds will be used to pay salaries of teachers, employees of emergency response services, and employees of state bodies as well as support priority social expenditures.
The funds will be provided through the Public Expenditures for Administrative Capacity Endurance (PEACE) project. The project is a key financial instrument of the World Bank’s assistance to Ukraine. Through it, more than $25B in aid from international donors has already been provided to the state budget since June 2022. This agreement will increase budget support within the project to almost $30B, of which more than 80% is funds from the US.