Ukraine received $3.35 billion from the World Bank: what will the funds be used for?

The state budget of Ukraine received $3.35 billion as part of the first program of the policy of development of jobs and growth of the private sector — Development Policy Operation (DPO), which is implemented by the World Bank.

The Ministry of Finance of Ukraine reported on the receipt of funding.

The funds received are planned to be directed to support macro-financial stability, cover the state budget deficit and finance priority expenditures in conditions of full-scale war.

Ukraine received loan and grant financing

The financing was the result of agreements reached during the Conference on the Reconstruction of Ukraine URC 2026, which took place in June in Gdansk, Poland. The parties signed the corresponding package of agreements on June 24.

Of the total amount, Ukraine received $1 billion in the form of a loan for development policy.

In particular:

$500 million is secured by a guarantee from the Government of the United Kingdom;

another $500 million — by a guarantee from the Government of Japan.

The remaining $2.35 billion was raised by Ukraine in the form of grant funding from the F.O.R.T.I.S. Ukraine FIF fund.

What will $3.35 billion be used for

The Ministry of Finance noted that the funding received will be used to ensure the stability of public finances and finance priority budget needs.

In particular, the funds should help:

maintain macro-financial stability;

cover the state budget deficit;

finance priority state expenditures in wartime.

The Development Policy Operation mechanism provides for direct funding to the state budget in exchange for Ukraine’s implementation of agreed structural reforms.

To receive the funds, Ukraine has fulfilled a number of conditions

The provision of funding became possible after Ukraine fulfilled the conditions set for the first DPO program.

To this end, the Verkhovna Rada and the Cabinet of Ministers adopted 13 laws and seven subordinate regulatory legal acts.

The reforms covered a number of key areas of state policy.

In particular, the changes concerned:

the public procurement system;
the development of factoring;
the integration of the Ukrainian energy market with the European Union market;
agrarian policy;
support for veteran entrepreneurship;
housing policy;
modernization of preschool and vocational education;
restoration of the system of environmental monitoring of greenhouse gas emissions.

The Ministry of Finance emphasizes that the implementation of these reforms should contribute to the development of the private sector, the creation of new jobs and increasing the sustainability of the Ukrainian economy.

Ukraine plans to attract another $1 billion by the end of the year

As part of the second Development Policy Operation program, Ukraine plans to receive another $1 billion by the end of 2026.

At the same time, the attraction of the next tranche will depend on the fulfillment of the conditions agreed with the World Bank and the continuation of structural reforms.

The Development Policy Operation is one of the key instruments of the World Bank’s budget support. The mechanism provides for direct financing of the state budget, provided that the country implements certain reforms aimed at strengthening the economy and increasing its resilience.

In 2024, Ukraine has already attracted over $3.5 billion through this mechanism under the Growth Foundations series of programs.

The new financing of $3.35 billion should become an additional resource to support the state budget and ensure Ukraine’s priority expenditures in the context of a full-scale war.