Ukraine Secures $1.5 Bn Funding Tranche Through World Bank Programme

Ukraine's Prime Minister, Denys Shmyhal, announced on Friday that the country has received a USD 1.5 billion tranche of funding from the World Bank, aiding in budgetary and social expenditures amidst its defense against the Russian invasion.

Ukraine, heavily dependent on financial assistance from Western allies, experienced a decline in foreign financing during the first two months of the year. Additionally, a U.S. aid package has been delayed by Republican opposition in Congress.

In March, Kyiv successfully secured approximately USD 9 billion in total external financing, with contributions from the European Union, Canada, Japan, the International Monetary Fund, and Britain, among others.

The latest block of aid from the World Bank, totaling USD 1.5 billion, was financed by Britain and Japan, according to Shmyhal. These funds are allocated for budgetary expenditures, social and humanitarian needs, as well as reconstruction efforts.

Earlier in March, Ukraine received a 4.5 billion euro (USD 4.9 billion) first tranche of aid from the European Union under a bridging finance programme.

Since Russia's invasion in February 2022, Kyiv has primarily utilised its own revenues to finance defense efforts, making external funding crucial for sustaining social spending.

In 2024 alone, external financing reached USD 10.2 billion, with a total of USD 83.8 billion since the start of the full-scale war. This international assistance is aimed at supporting priority social expenditures outlined in Ukraine's state budget.