1 Feb 2024 11:08

Ukraine receives $390 mln from Japan to restore agriculture and social assistance

MOSCOW. Feb 1 (Interfax) - Ukraine has received around $390 million from Japan as part of the World Bank projects aimed at social assistance and agricultural restoration, Ukrainian media reported, citing the statement from Ukraine's Finance Ministry.

The Finance Ministry said that Japan's financial assistance received in January includes an $89.8 million grant as part of the World Bank's Agriculture Recovery Inclusive Support Emergency (ARISE) project and a $300 million loan as part of the bank's Investing in Social Protection for Inclusion, Resilience, and Efficiency (INSPIRE) project.

"The funds raised will be allocated to reimburse the expenses of Ukraine's federal budget for priority needs, particularly in the area of reconstruction and social assistance," Finance Minister Sergei Marchenko said in the statement.

The Finance Ministry recalled that the INSPIRE project is financed through a World Bank loan totaling $1.2 billion from the specialized fund to provide necessary credit support to Ukraine (ADVANCE Ukraine) with the support of the Japanese government, and the project's goal is to ensure social protection for vulnerable segments of the population.

The ARISE project supports agricultural producers' access to financing through preferential loans and grants.

As reported, a grant and loan agreement totaling $550 million, as part of the World Bank's ARISE project, was signed with the International Bank for Reconstruction and Development in November 2023.

Ukrainian Prime Minister Denis Shmygal in early January said that the country required more than $37 billion in external financing for 2024. "$42.6 billion in external financing was attracted in 2023, of which 27% were grant funds. The European Union, the United States, the International Monetary Fund, Japan, Canada, the United Kingdom, and the World Bank remain the leaders in providing support," Shmygal said.