Ukraine's foreign budget support surpasses $100 billion since start of full-scale war

November 15, 2024

By Ukraine

0 Likes

Since the start of Russia's full-scale invasion in February 2022, Ukraine has received over $100 billion in foreign-backed external financing to support Ukraine's state budget, the country's finance ministry announced on Nov. 15.

In addition to military aid to support Ukrainian military efforts along its eastern border, Western countries and institutions have helped to finance Ukraine's state budget amid increased budgetary pressures on the embattled nation.

Ukraine's external financing is primarily received through various cooperation programs including International Monetary Fund's (IMF) Extended Fund Facility program, the European Union's Ukraine Facility program, the World Bank, as well as directly from individual countries.

European Union nations rank first in providing external budget support with a combined $40.5 billion, the finance ministry announced. EU member states are followed by the United States with $28.2 billion in support, the International Monetary Fund at $11.4 billion, Japan at $6.3 billion, and Canada with $5.4 billion in budget support — all of which amounting to more than 90% of Ukraine's external financing.

"While the military campaign is financed by domestic resources, Ukraine counts on the support of international partners to finance social and humanitarian needs. No country can face challenges of this scale alone," Ukraine's finance ministry said a statement.

Of the total external budget support, about 33% of the aid — or $33.7 billion — has come in the form of non-repayable grants, with the United States providing the plurality of the grant funding.

Combining external funding with military assistance for Ukraine, the United States leads in its support allocating $175 billion to assist Ukraine — although that number includes an number government funding projects associated with the war including domestic weapons production. In April 2024, the U.S. approved its largest foreign aid bill providing $61 billion for Ukraine.

Ukraine expects to receive a total of $40.8 billion in external financing in 2024, having received $27.2 billion as of Nov. 14. The total for 2024 is in line with a record high in external financing provided in 2023 at $42.5 billion.

Ukraine's Deputy Finance Minister Olha Zykova said in August that the country would need to increase its external budget support by $12-15 billion for it to meet its domestic needs.

Earlier this year, Group of Seven (G7) nations finalized a framework agreement for a $50 billion loan for Ukraine backed by frozen Russian assets revenue.