Ukraine receives $1.25B in grants from U.S. - Finance Ministry

According to Ukrinform, Ukraine's Ministry of Finance reported this.

"In 2023, Ukraine has already received $8.45 billion in direct budget support grants from the United States. Since Russia's full-scale war, the state budget of Ukraine has already received $20.4 billion in grants from the U.S.," the statement said.

The grant was provided as part of the fifth additional funding under the Public Expenditures for Administrative Capacity Endurance (PEACE) Project. The aim of the project is to partially compensate for state budget expenditures, including social and humanitarian expenditures not related to security and defense.

The grant funding will be used to reimburse state budget expenditures, in particular, to pay salaries to government employees and payments under certain state social assistance programs (IDPs, people with disabilities, low-income families, housing and utility subsidies) and other social benefits.

"The non-repayable financial assistance from the United States is an extremely important element in supporting the state budget of Ukraine in its resistance to Russia's full-scale war of aggression. Another grant will help the Government of Ukraine to reimburse the priority expenditures in the social and humanitarian sphere," Minister of Finance Sergii Marchenko said.

The Ministry of Finance of Ukraine, together with the World Bank, is implementing the PEACE in Ukraine Project and ensuring the transparency of the attraction and use of funds provided by development partners. In cooperation with Deloitte Consulting, which implements the USAID SOERA project, the Ministry of Finance monitors the use of direct budget support from the U.S. Government. Finance Ministry with the auditing company PriceWaterhouseCoopers Ukraine conducts an audit according to agreed procedures to determine the eligible public expenditures made by Ukraine in 2022 under the Project.

Currently, Ukraine is implementing a joint project with the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) to support public expenditures for sustainable public administration in Ukraine for a total of $16.5 billion and €1.4 billion (IBRD loans, IDA loans, and grants from the Multi-Donor Trust Fund).

As Ukrinform reported, on July 25, the state budget received the sixth tranche of €1.5 billion of large-scale macro-financial assistance (MFA) from the EU, bringing the total amount of funding under the MFA program to €18 billion.