Ministry of Finance names unexpected leader of financial support for Ukraine
19 February 2024 12:35
Amid the absence of a decision on aid from the United States and delays in the relevant decision from the European Union, Japan has unexpectedly become the leader in terms of financial support in early 2024. This became known from a report by the Ministry of Finance, reports 
“In the first months of the year, Japan is the largest donor of financial assistance. Overall, in the first quarter, aid is expected to reach about USD 2.2 billion. The funds will be raised through World Bank framework projects,”
– the Ministry of Finance said in a statement.
It notes that Japan is among Ukraine’s key creditors.
“Japan is one of the leaders in supporting Ukraine in all possible ways. Japan has already provided support worth over USD 4.6 billion, including about USD 372 million in grants,”
– said Minister of Finance of Ukraine Sergii Marchenko.
In total, Ukraine plans to raise USD 37.3 billion from its partners for the social and humanitarian sphere this year, the ministry said.
According to the latest estimates, Ukraine needs $486bn for reconstruction, of which $15bn is needed for “rapid recovery”.
Aid to Ukraine
As of June 2023, Ukraine has received a total of €170 billion in aid from partners, the Ministry of Reintegration reported. This amount includes military, financial and humanitarian aid. Aid from the US reached €71 billion, while the EU allocated €62 billion. Half of these funds were financial aid, about 40% were military aid, and the rest were humanitarian aid.
(Will there be?) help from the US
The House of Representatives is currently considering a bill that would allocate $61bn in aid to Ukraine. However, the US Congress is currently on recess until the end of February.
50 billion euros from the EU
At a summit in Brussels on 1 February, EU leaders approved a mechanism for allocating €50 billion to Ukraine for the period 2024-2027. As previously reported by the EU, this programme consists of €17 billion in grants and €33 billion in loans. The mechanism provides not only for financing budgetary areas in Ukraine during the war, but also for programmes aimed at implementing the reforms that are essential for Ukraine’s accession to the EU.
IMF loan programme
In March 2023, Ukraine agreed with the IMF on a new four-year loan programme worth USD 15.6 billion. The programme will have two phases. The first phase, which will last 12-18 months, is aimed at ensuring fiscal, price and financial stability. The second stage involves more in-depth measures aimed at macroeconomic stability, recovery and reconstruction of the country, and economic growth. At all stages, Ukraine should continue reforms, such as anti-corruption and governance, and refrain from cutting taxes.
According to IMF Managing Director Kristalina Georgieva, Ukraine needs $42bn to secure economic stability.
Read also: The US has transferred confiscated assets of the Russian Federation to Estonia to support Ukraine.
