Ukraine to receive USD 841 million from the World Bank under Canada’s guarantee: Ministry of Finance and World Bank signed agreement

Minister of Finance of Ukraine Sergii Marchenko met with World Bank Vice President for Europe and Central Asia Antonella Bassani. Deputy Minister of Finance of Ukraine Olga Zykova also took part in the meeting.

The parties discussed mobilizing financing for Ukraine through the end of 2026, the continued implementation of the PEACE in Ukraine project, attracting financing under the SPUR 2.0 instrument, and the preparation of new joint projects.

During the meeting, Minister of Finance of Ukraine Sergii Marchenko and World Bank Regional Director for Eastern Europe Bob Saum signed a Loan Agreement for the Tenth Additional Financing of the Public Expenditures for Administrative Capacity Endurance in Ukraine (PEACE in Ukraine) Project.

As a result, Ukraine will soon receive USD 841 million from the International Bank for Reconstruction and Development (IBRD), backed by a guarantee from the Government of Canada. The financing will provide budget support by reimbursing State Budget expenditures as old-age social payments.

Following the signing of the agreement, the total volume of the PEACE in Ukraine Project will reach USD 54.3 billion. PEACE in Ukraine is the largest investment project in the World Bank’s history.

“PEACE remains one of the most effective instruments for supporting Ukraine’s State Budget. Thanks to the new financing backed by Canada’s guarantee, we will be able to ensure funding for critical social expenditures. I am grateful to the Government of Canada and the World Bank for their consistent and timely support for Ukraine,” said Sergii Marchenko.

During the meeting, the parties also focused on the preparation of the 2026 Development Policy Operation (DPO). The Minister of Finance emphasized the importance of developing a realistic reform matrix that takes into account the timelines required for the adoption of relevant legislation. Conditions for receiving financing already planned by the end of the year must be achievable and should not create additional risks to the country’s financial stability.

Sergii Marchenko also welcomed the approval of the new SPUR 2.0 instrument and called on the World Bank to support more active mobilization of contributions from international partners.

SPUR 2.0 (Special Program for Ukraine Recovery 2.0) is a large-scale World Bank financing initiative aimed at mobilizing resources for Ukraine’s priority recovery needs. The program operates on a multiplier principle: each USD 1 in grant funding can unlock USD 3 in lending, allowing the mechanism to mobilize up to USD 6 billion in total financial support.

Ukraine has already approached 27 partner countries with an invitation to contribute to SPUR 2.0. Four countries have already confirmed their readiness to provide contributions.

In addition, Ukraine and the World Bank are preparing six new joint projects in the areas of energy efficiency, housing policy, waste management, support for the agricultural sector, statistics, and digitalization.

Sergii Marchenko expressed hope for the swift completion of the preparatory procedures, which would enable the launch of the new projects by the end of 2026.

The Minister of Finance thanked the World Bank and international partners for their systematic support for Ukraine and emphasized the importance of continued joint efforts to mobilize resources to safeguard the resilience of public finances and finance key budgetary needs.