The Ministry of Finance has attracted $98.1 billion of external financing since February 2022. What expenditures are covered by international support?

More than two years in a row, the Ministry of Finance of Ukraine has been taking the necessary measures to maintain a stable macro-financial system in wartime. 

Effective steps taken by the Government of Ukraine allow us to strengthen domestic financial capacity in times of uncertainty. However, international assistance continues to be important in supporting the financial system and covering the country's urgent needs. 

Since 24 February 2022, direct budget support from donor countries and international financial institutions totalled about USD 98.1 billion. 

How is international funding being used?

The Government allocates all revenues from partners to social, humanitarian and other priority non-military expenditures of the State Budget. External financial assistance cannot be used to cover defence and security expenditures. 

The funds raised are used for priority expenditures of the State Budget following the priority order* or for specific expenditures agreed with partners.  

- Targeted direct budget support 

Funds raised under World Bank projects are exclusively targeted and agreed upon by partners and the Government of Ukraine. 

Since February 2022, Ukraine has received almost USD 40 billion through World Bank mechanisms. The United States, Japan, and the United Kingdom are the largest donors. 

Since the beginning of the full-scale war, the World Bank has launched 7 projects to support key sectors of Ukraine's economy:

• Public Expenditures for Administrative Capacity Endurance (PEACE) in Ukraine.  Reimbursement of expenditures on old-age pensions, part of social assistance, and salaries for doctors, teachers, civil servants (except for security and defence), and employees of the State Emergency Service. The project has attracted up to USD 30 billion. 

• Investing in Social Protection for Inclusion, Resilience, and Efficiency (INSPIRE). Social assistance to vulnerable populations and increasing the effectiveness of social support programmes (including IDPs). The project has received about USD 1.2 billion.

• Ukraine Agriculture Recovery Inclusive Support Emergency (ARISE) Project. Restoration and support of the agricultural sector (in particular, expanding access to the 5-7-9 loan programme for agricultural enterprises). USD 500 million was raised. 

• Health Enhancement And Lifesaving (HEAL Ukraine). Improving access to healthcare services, covering urgent healthcare needs, and providing financial protection in emergencies. The project has already received over USD 124.5 million.  

• Housing Repair for People’s Empowerment (HOPE). Small and medium-sized repairs of partially damaged private and multi-apartment residential buildings. Around USD 150 million has already been disbursed.

• Development Policy Loan & Development Policy Operation (DPL/DPO). Support Ukraine's efforts to implement the structural reform agenda and provide critical financing. The total disbursement is USD 3 billion. 

- Budget support for priority budget expenditures

Priority expenditures of the State Budget without reference to specific areas are allocated from the EU (EUR 38 billion), the IMF (USD 10.2 billion), and the Government of Canada (over USD 5 billion). 

These include social and humanitarian expenditures that are not covered by targeted budget support. They also include support for the energy sector, state debt service, economic recovery, etc.

The Ministry of Finance of Ukraine is committed to a transparent process of using external financing. Follow the link for more information on the mechanisms for monitoring the use of donor budget support.