World Bank Announces Additional $2.5 Billion In Ukraine Aid; Total Reaches $20.6 Billion

The World Bank on Friday announced $2.5 billion in additional grant financing from the U.S. Agency for International Development (USAID) to support Ukraine's budget and maintain essential services.

The latest financing under the World Bank's Public Expenditures for Administrative Capacity Endurance in Ukraine(PEACE) project lifts the total to $20.6 billion and will support salaries in core government functions and sectors such as healthcare and education while allowing Kyiv to pay pensions and support internally displaced people.

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World Bank President Jim Yong Kim takes to the stage to deliver remarks at the plenary session at the IMF-World Bank annual meetings at Constitution Hall in Washington. Reuters

"One year into Russia's invasion of Ukraine, the world continues to witness the horrific destruction inflicted on the country and its people," said World Bank Group President David Malpass.

He said that $18.5 billion of the total funds mobilized had been disbursed, reaching more than 12 million Ukrainians.

The additional funding was announced a day after U.S. Treasury Secretary Janet Yellen said that Washington was preparing an additional $10 billion in economic assistance for Ukraine and called on the International Monetary Fund to pull together a loan programme for Ukraine.

Ukraine is seeking a $15 billion multi-year IMF package.

The World Bank-facilitated financing under the PEACE program is set up to minimize the risk of corruption. The World Bank transmits funds to cover Ukraine's expenditures a month after they are made, once it has verified that the money has gone to the government employees, pensioners and other recipients.

Ukraine War
This residential area in Ukraine has been bombed by the Russian forces. Twitter

The latest USAID funds will be transmitted to the government of Ukraine after the World Bank verifies eligible expenditures.

The total of $20.6 billion in emergency financing comes from commitments and pledges from, the United States, Britain, the Netherlands, Spain, Norway, Germany, Canada, Switzerland, Sweden, Denmark, Austria, Finland, Ireland, Lithuania, Latvia, Iceland, Belgium, and Japan.