Ukraine, together with the World Bank, Japan and Canada, signed an agreement to attract grant funding for $691 million
The Ministry of Finance of Ukraine, together with the World Bank, has signed an agreement to attract grant financing from Japan and Canada for a total amount of almost 691 million US dollars. This was reported by the Ministry of Finance.
The financing was provided within the framework of the project “Support for public expenditure to ensure sustainable public governance in Ukraine” (PEACE in Ukraine).
The funds received are part of the Extraordinary Revenue Acceleration for Ukraine mechanism, agreed upon by the G7 countries, which involves the use of revenues from frozen assets of the Russian Federation. The total volume of this mechanism is 50 billion US dollars.
It is noted that this tranche is the final for Canada within the framework of the relevant mechanism and the first financial contribution of Japan.
Grant resources are formed from contributions from international partners, in particular:
544 million US dollars – contribution from the Government of Japan;
146 million US dollars – contribution from Canada;
0.8 million US dollars – funds from the PEACE in Ukraine Multi-Donor Trust Fund.
It is expected that the grant funding will soon be transferred to the general fund of the state budget of Ukraine.
The funds raised will be used to cover key state expenditures, in particular, to finance pension payments, implement state social assistance programs, and provide housing and communal subsidies.
