Ukraine to receive over $840 million from the World Bank under Canada's guarantee

Ukraine will soon receive $841 million in budget support from the World Bank under a guarantee from the Government of Canada. The Ministry of Finance has already signed an agreement to attract the funds.

Minister of Finance Sergii Marchenko and World Bank Regional Director for Eastern Europe Robert Saum signed a loan agreement under the tenth additional financing for the PEACE in Ukraine project.

The financing will be provided by the International Bank for Reconstruction and Development under a guarantee from the Government of Canada. The funds will be directed to budget support - they are intended to compensate state budget expenditures on pension payments.

After signing the new agreement, the total volume of the PEACE in Ukraine project will reach $54.3 billion. The Ministry of Finance calls it the largest investment project in the history of the World Bank. The project has been operating since 2022 and helps Ukraine ensure financing of key state functions and social expenditures.

During the negotiations, Ukraine and the World Bank also discussed mobilization of financing until the end of 2026 and the new SPUR 2.0 instrument. Under its mechanism, each $1 of grant contributions from partners should allow attracting another $3 of loan financing. The overall potential of the program is estimated at $6 billion.

Ukraine has already invited 27 countries to join SPUR 2.0, four of them have confirmed their readiness to make contributions. Separately, six new projects are being prepared with the World Bank in the areas of energy efficiency, housing policy, waste management, the agricultural sector, statistics, and digitalization.

Based on materials from: Cabinet of Ministers of Ukraine, Ministry of Finance of Ukraine