Ukraine has received a $690 million grant from Japan and Canada: where will the money go?
16 February 12:16
Ukraine has received a grant from Japan and Canada in the amount of $690 million as part of the World Bank’s PEACE in Ukraine program. The funds will be used to finance pension payments, social support for the population, and housing and utility subsidies.
This was reported by "Komersant Ukrainian", citing the press service of the Ministry of Finance.
Financial support from Japan and Canada
This is the first tranche from Japan and the last tranche from Canada, financed under the G7’s Extraordinary Revenue Acceleration for Ukraine mechanism, with a total volume of $50 billion.
The funds raised have been transferred to the general fund of the Ukrainian state budget and will be used to finance priority state expenditures, including pension payments, social support programs for the population, and housing and utility subsidies.
The grant funding was formed from contributions from international partners:
- $544 million – contribution from the Government of Japan;
- $146 million – contribution from the Government of Canada;
- $0.8 million – funds from the Multi-Donor Trust Fund of the PEACE in Ukraine project.
About the ERA mechanism and the PEACE in Ukraine project
The implementation of the Extraordinary Revenue Acceleration (ERA) mechanism began at the end of 2024. Canada’s total contribution to this initiative is CAD 5 billion (almost USD 3.6 billion), of which Ukraine received two previous tranches of CAD 2.5 billion and CAD 2.3 billion in the spring and summer of 2025. Japan’s contribution to the G7 countries’ financial support for Ukraine is expected to amount to 471.9 billion Japanese yen (over US$3 billion).
Ukrainian Finance Minister Serhiy Marchenko noted that grant support from the World Bank and the governments of Japan and Canada ensures the country’s macro-financial stability and the financing of key expenditures. Since 2022, Japan has provided Ukraine with $9.5 billion, and Canada with nearly $9 billion in budget support.
On February 6, 2026, the Ministry of Finance of Ukraine and the World Bank signed an agreement on the provision of grant funds within the framework of the project “Supporting Public Expenditures for Sustainable Public Administration in Ukraine” (PEACE in Ukraine).
The PEACE in Ukraine project has been implemented since June 2022 and aims to ensure the continuous performance of key state functions since the start of the full-scale war. The total amount of funding raised under the project is $51.7 billion.
