Ukraine is expected to receive $841 million in budget support from the World Bank in the near future, backed by guarantees from the Government of Canada. The funds will be used to reimburse state budget expenditures on pension payments under the PEACE in Ukraine project.
Prime Minister of Ukraine Serhii Koretskyi announced the financing on September 14. According to him, the World Bank funds are being provided under guarantees from the Canadian government and are expected to be transferred to Ukraine shortly.
The financing is being provided under the PEACE in Ukraine project, through which the World Bank supports Ukraine’s state budget during the full-scale war. The $841 million is expected to reimburse expenditures already made from the state budget for pension payments.
Koretskyi noted that such support is particularly important given the state budget deficit and imbalances in public finances. The Prime Minister also thanked the Government of Canada and the World Bank for their financial support for Ukraine.
The PEACE in Ukraine project is the largest investment project in the World Bank’s history and was launched to support Ukraine’s state budget during the full-scale war. More than $20 billion has already been mobilized through the mechanism. The funds have been used to finance pensions and other social payments, salaries for teachers and healthcare workers, as well as support for critical infrastructure.
The additional financing backed by Canadian guarantees comes amid further expansion of financial cooperation between Ottawa and Kyiv. According to the Financial Times, Canada is in talks to participate in the EU’s €90 billion lending program for Ukraine. The Canadian government expects to agree on the size of its financial contribution by the Canada–EU summit, which is scheduled to take place in Montreal at the end of October.
Canada has already provided Ukraine with $4.7 billion in military assistance. In addition, last week Canadian Prime Minister Mark Carney and Ukrainian President Volodymyr Zelenskyy signed a declaration on a “century-long partnership” between the two countries. The document provides for further deepening of cooperation in security, defense, the economy, and Ukraine’s reconstruction.
