Receiving US financial aid by November is critical - Ukraine's Finance Minister
Photo: Sergii Marchenko, Minister of Finance of Ukraine (Vitalii Nosach/RBC-Ukraine)
Ukraine is expecting the first tranche of $3.9 billion from the US to be added to its budget soon as part of the aid package approved by Congress in April, says Finance Minister Sergii Marchenko in an interview with RBC-Ukraine.
"The funds are already in the accounts of the World Bank. These funds will be available to us at the end of July or early August. In total, we expect $7.8 billion in 2024," said Marchenko.
The first tranche will amount to $3.9 billion, and the remaining funds, according to the minister, Ukraine plans to receive no later than November, as this month is critical for the government in terms of budgetary possibilities.
The minister explained that the commitment for $7.8 billion is conditional, more akin to a grant, and Ukraine has not taken on specific credit obligations for it.
"It is expected that half of this debt may be written off this year. The President of the United States authorized the Secretary of the Treasury to conduct negotiations for such a write-off. The next write-off may occur in 2025," Marchenko said.
As with all other tranches of aid from the United States, the minister reminded, the funds are directed to the accounts of the World Bank and then to Ukraine through the PEACE in Ukraine project to cover social and humanitarian expenses.
US aid
In July, the Cabinet of Ministers decided to attract a grant of $3.9 billion from the United States.
Ukraine has not yet received financial aid from the US this year. In April, the US Congress approved an aid package for Kyiv amounting to $61 billion, most of which will go to military assistance and a portion to budgetary support.
Since the beginning of the year, Ukraine has received $16 billion in budgetary support from the EU, IMF, and Western countries. Kyiv expects total aid for the year to amount to $38 billion.
