Ukraine receives $3.9 bln from US for priority budget expenditures and social assistance

Ukraine received a $3.9 billion grant from the United States of America through the World Bank.

Prime Minister Denys Shmyhal announced this.

According to the head of government, these funds will finance crucial budget items, specifically to cover salaries for key professionals such as teachers, doctors, and rescuers and to provide social support.

According to Shmyhal, this is the first tranche of direct budget support from the United States in 2024.

In total, Ukraine will receive $7.8 billion in direct budget aid from the United States this year.

As the Ministry of Finance reported, the funds came through the project "Supporting Public Expenditures to Ensure Sustainable Public Administration in Ukraine" (PEACE in Ukraine). The department indicates that this project is a key financial instrument of the World Bank for assistance to Ukraine.

Funds are sent to the World Bank accounts and later to Ukraine through the PEACE in Ukraine project to cover social and humanitarian expenses.

Thus, more than 25 billion dollars have already been attracted to the state budget through the PEACE in Ukraine project since June 2022. This agreement will increase the amount of budget support within the project to almost 30 billion dollars, of which more than 80% will come from the United States.

As reported at the end of July, the Cabinet of Ministers [Ukraine's government – ed.] decided to attract a $3.9 billion grant from the United States of America. The funds will come through the World Bank's structures.

"The government will use this money to pay the salaries of rescue workers, teachers, and doctors and to fund social support programs. We expect to receive this grant soon," he said.

Shmyhal also reported that Ukraine fulfilled the indicators for the Ukraine Facility program in the second quarter of 2024.

"We have a positive assessment from the European Commission. We are talking about reforms in the budget, customs, anti-corruption, and energy spheres," the prime minister said, adding that Ukraine is counting on the next tranche from the EU, which will amount to 4.1 billion euros, already in September this year.

It should be noted that Ukraine did not receive aid from the USA this year. In April, the US Congress approved a $61 billion support package for Kyiv, most of which will go to military aid and some to budget support.

Since the beginning of the year, Ukraine has received 14 billion dollars in budget support from the EU, IMF, and Western countries. Kyiv expects that the aid will amount to 38 billion dollars annually. Aid will be reduced next year, but Ukraine can get a $50 billion loan for frozen Russian assets.