Ukraine attracts a nearly $1.3 billion grant – the second tranche from Japan under the G7 ERA mechanism

Ukraine has received a grant from Japan totaling nearly USD 1.3 billion. The funds were provided under the G7 Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism through the World Bank’s PEACE in Ukraine project (“Public Expenditures for Administrative Capacity Endurance”).

This is the second tranche from Japan financed under the ERA mechanism, which has a total envelope of USD 50 billion. The funds were channeled to the F.O.R.T.I.S. Ukraine FIF and have already been credited to the general fund of the State Budget of Ukraine. The financing will be used to reimburse social expenditures – one of the key priorities of the State Budget under martial law.

“On behalf of Ukraine, I sincerely thank the World Bank for its effective coordination of international assistance and the Government of Japan for the grant. Thanks to this support, the total amount of financing mobilized under the project has already exceeded USD 53 billion. This is a significant contribution to Ukraine’s financial resilience and to the timely fulfillment of the state’s social obligations to citizens,” said Sergii Marchenko.

Since February 2022, budget support from Japan has exceeded USD 10.7 billion – the second-largest contribution among countries and the fourth among all donors. Of this amount, more than USD 2.7 billion has been provided in grants.

The PEACE in Ukraine project was launched in June 2022 in response to russia’s full-scale aggression and the urgent need to ensure the country’s financial stability. Its goal is to support the Government of Ukraine in performing key functions, including financing public sector wages, healthcare services, old age social payments, and social assistance programs.