1 Mar 2024 10:25

Ukraine receives $1.2 bln in external support in Jan-Feb, far less than $3 bln/month needed

MOSCOW. March 1 (Interfax) - Ukraine's Finance Ministry raised $1.2 billion in grants and soft-term financing from international partners for the general fund of the state budget in the first two months of 2024, Ukrainian media reported, citing an announcement on the ministry website.

Donors included Japan, which provided $901 million in soft financing and grants; Norway, which provided a grant of $295 million; and Spain, which provided $3 million in soft financing, the ministry said.

The funds were channelled to the state budget through World Bank projects. Grants amounted to almost 75% of the total, it said.

Finance Minister Sergei Marchenko said Ukraine needs about $3 billion of external financing per month this year. The state budget for 2024 anticipates a total of $37.3 billion in external financing for the year. A mission from the International Monetary Fund recently estimated Ukraine needs $38 billion this year, down from the previous estimate of $42 billion.

Marchenko recalled that G7 and European Union countries have provided about $63 billion in financial support to Ukraine since the start of the military operation.

Ukraine's state budget is expected to receive financial aid from the EU, Japan and United Kingdom in March, as well as from the IMF, given a successful third report on the cooperation program, which is supposed to be approved by the Fund's executive board, the ministry said.

It was reported earlier that Ukraine expected to receive 4.5 billion euros from the EU in March, about $880 million from the IMF and $1.76 billion from Japan.