Finance Minister Serhii Marchenko and World Bank Regional Director Bob Saum have signed a new financial agreement on the first tranche of $3.9 billion from the United States in 2024, Ukraine's Finance Ministry announced on Aug. 1.
"This is the first tranche of direct budget support from the United States in 2024. The planned amount of financial assistance from the United States for the current year is $7.8 billion," the statement read.
The Ukrainian government decided to attract a $3.9 billion grant from the U.S. for salaries and social support programs, Prime Minister Denys Shmyhal announced on July 23. Shmyhal added the funds would be delivered "soon" through the World Bank.
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 the 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
