Ukraine received a $1 billion grant from the US. This is the first time the State Budget has been funded through proceeds secured from frozen assets of russia
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The State Budget of Ukraine received a USD 1 billion grant from the United States of America under the World Bank's Second Growth Foundation Development Policy Loan (DPL).
This funding is received from the U.S. government’s USD 20 billion Extraordinary Revenue Acceleration (ERA) loan, which is part of the G7 commitment to support Ukraine with USD 50 billion secured by proceeds from immobilized Russian sovereign assets. It is disbursed through the Facilitation of Resources to Invest in Strengthening Ukraine Financial Intermediary Fund (F.O.R.T.I.S. Ukraine FIF), which is hosted by the World Bank.
The USD 1 billion tranche, provided through the United States Agency for International Development (USAID) and in coordination with the U.S. Department of the Treasury and the U.S. Department of State, builds on the United States’ direct budget support for Ukraine, which totaled about USD 30 billion in grant funding in 2022-2024.
“The United States continues to support Ukraine in maintaining macroeconomic stability and ensuring essential public services for its citizens. For the first time, Ukraine is receiving funds financed by proceeds from the frozen assets of russia. I am deeply grateful to the United States for its quick decision-making and adaptable solutions in support of Ukraine,” said Ukraine’s Minister of Finance Sergii Marchenko.
DPL is a systemic project aimed at supporting reforms in Ukraine. The funds are received based on the completion of agreed upon reform milestones and provided to the general fund of the State Budget as a single tranche.
The key reforms support strengthening the economic policy framework towards sustainable growth, including ones related to the railways, customs and tax policy, anti-corruption, state-owned enterprises, and development of the private sector.
To uphold transparency in the use of this budget support, the Ministry of Finance of Ukraine cooperates with the USAID SOERA project and DBS Audit Activity to conduct monitoring efforts.