Frozen Russian assets: Ukraine, World Bank, Japan and Canada sign US$691m agreement
Ukraine's Ministry of Finance and the World Bank have signed an agreement to provide grant funding from Japan and Canada worth nearly US$691 million.
Source: Ukraine's Ministry of Finance
Details: The funds are mobilised under the Public Expenditures for Administrative Capacity Endurance (PEACE) in Ukraine project.
The financing is included in the G7 Extraordinary Revenue Acceleration for Ukraine mechanism, which uses revenues from frozen Russian assets, with a total volume of US$50 billion.
This is the final tranche from Canada under the mechanism and the first from Japan.
Grant contributions from international partners are as follows:
- US$544 million from the Government of Japan
- US$146 million from Canada
- US$0.8 million from the PEACE in Ukraine Multi-Donor Trust Fund.
The grant funding will be transferred to Ukraine's general state budget soon.
The funds will be used to cover key state expenditures, including pension payments and social assistance programmes such as housing and utility subsidies.
Background: The PEACE in Ukraine project has been implemented since June 2022 in response to Russia's full-scale aggression against Ukraine.
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