US tranche of $3.9 billion to be received shortly: Ukraine signs agreement
Ukraine's Finance Minister Serhii Marchenko (Vitalii Nosach, RBC-Ukraine)
The United States is set to provide Ukraine with a grant of nearly $3.9 billion, which will soon be transferred to the country's state budget. The agreement was signed by Ukrainian Finance Minister Serhii Marchenko and World Bank Regional Director Bob Sobh, according to the Ministry of Finance.
"The financing will be channeled to pay wages to teachers, emergency service personnel, government officials, as well as to support priority social expenditures (payments to internally displaced persons, low-income families, and persons with disabilities)," the statement reads.
This marks the first tranche of direct budget support from the U.S. in 2024. The total planned financial assistance from the US for the current year amounts to $7.8 billion.
According to the Ministry of Finance, the funds will be disbursed through the Public Expenditures for Administrative Capacity Endurance in Ukraine (PEACE in Ukraine) project. This initiative is the World Bank's key financial instrument for assisting Ukraine. Since the onset of Russia's full-scale invasion, it has united international donors in providing crucial support to Ukraine.
Since June 2022, the PEACE in Ukraine project has channeled over $25 billion into Ukraine's state budget. With this latest agreement, the total budget support under the project will increase to nearly $30 billion, with more than 80% of the funds coming from the United States.
Earlier, Finance Minister Serhii Marchenko said in an interview with RBC-Ukraine that the $7.8 billion commitment is largely a grant, with no specific loan obligations taken on by Ukraine.
The first tranche is expected to arrive in early August, and the remaining funds, according to the minister, are anticipated by November, a critical month for the government's budgetary needs.
