World Bank Group Support for Ukraine

One year ago, on February 19, 2022, I met with Volodymyr Zelenskyy, President of Ukraine, in Munich. On the eve of Russia’s invasion, I reaffirmed the World Bank Group’s support for the people of Ukraine and its economy, both for short and long-term financing needs. We discussed the World Bank’s robust pipeline of planned projects for Ukraine, and the strong interest from development partners to coordinate their support with the World Bank.

Just days later, Russia invaded Ukraine and unleashed horrific devastation. After one year of war, the Ukrainian people and their leaders remain determined and resilient—and the World Bank Group remains steadfast in its support.

Since the war began, the World Bank Group has?mobilized $18 billion?in emergency financing, including grants, guarantees, and linked parallel financing from the United States, the United Kingdom, European countries, and Japan. More than $16 billion has already been disbursed.

This relief has provided wages for hospital workers, government, and school employees; pensions for the elderly; and social programs for the vulnerable. Our?Public Expenditures for Administrative Capacity Endurance?in Ukraine, or PEACE, project—an initiative funded by IBRD and IDA financing, donor grants, and donor guarantees—covers critical healthcare services, social payments, and pensions.

Most recently, we announced a $50 million project to repair and restore Ukraine’s transport network. The Repairing Essential Logistics Infrastructure and Network Connectivity (RELINC) Project?will help to restore essential bridges and railways to relink communities and improve westward transport linkages to mitigate impacts of Black Sea shipping disruptions.?This grant financing is provided by the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF), a multi-donor fund established by the World Bank to channel grant contributions from donor partners to the most critical sectors of the economy. Additional funding of up to $535 million is envisaged to follow shortly.

Through our private sector arm, IFC, we are providing working capital to businesses and helping to keep Ukraine’s trade lines open. IFC has made recent investments totaling $95 million, including injection of capital, to help create jobs, accelerate the growth of Ukraine's technology sector, and contribute to food security through sourcing and exporting grains from Ukraine. In December 2022, IFC announced a $2 billion package to support Ukraine’s private sector focusing on agribusiness and on the provision of essential goods and services to the population. IFC is also supporting the government to develop an approach to attract private investment and know-how for the reconstruction.

And World Bank Group member MIGA is supporting Ukraine with guarantees to important sectors of the economy. To further support reconstruction, MIGA is working to address the impacts of the war in Ukraine on the private sector through a donor-supported guarantee issuance.

We are grateful to our donors and partners for their continued support, generosity, and collaboration.

I remain horrified by Russia’s actions and by the loss of lives and livelihoods caused by the war. The World Bank Group stands with the people of Ukraine, and is strongly committed to addressing Ukraine’s recovery and reconstruction needs.

– David