Ukraine has received $3.9 billion from the United States via the World Bank program, Prime Minister Denys Shmyhal said on Aug. 5.
This is the first tranche in 2024 under a new financial agreement between Ukraine and World Bank announced a few days earlier.
"These funds will be used to finance priority budget expenditures such as the salaries of teachers, doctors and rescue workers, pensions and social benefits," Shmyhal said.
This year, Kyiv will receive $7.8 billion in direct budget support from the U.S., which "will allow Ukraine to confidently pass this financial period," the prime minister added.
The agreement was signed as part of the Peace in Ukraine project, which has been the main tool of the World Bank in providing financial assistance for Ukraine since the beginning of the all-out war in 2022.
Over $25 billion has been raised via Peace in Ukraine, and the new deal will increase the amount to almost $30 billion, most of which was provided by the U.S., according to Ukraine's Finance Ministry.
As the ongoing full-scale Russian invasion continues to put pressure on Ukraine's economy and business, the World Bank plays one of the most crucial roles in supporting the country's economic sector.
The World Bank said that 1.8 million more Ukrainians are living in poverty than in 2020, in a report released on May 29.
The report was based on a survey conducted in collaboration with the Kyiv International Institute of Sociology (KIIS). It found that 9 million Ukrainians, out of a total estimated population of 32 million, were living in poverty.
While the situation is dire, the World Bank said it would be much worse if Ukraine had not received foreign aid to help pay for pensions and salaries.
Martin Fornusek
