Ukraine’s Business Environment to Improve with World Bank Support

WASHINGTON, October 31, 2024-The World Bank announced today that a new private sector development program in the amount of $593 million will launch in Ukraine to support 20,000 small and medium-sized enterprises (SMEs), and help them create or preserve at least 40,000 jobs through their participation in support programs deployed by the Government of Ukraine since Russia's invasion.

The Resilient, Inclusive, and Sustainable Enterprise (RISE) Program for Results will improve the efficiency of state support to SMEs with a focus on green competitiveness. The program will enhance the business environment with government-to-business (G2B) digital services and enable SMEs to access export markets. Ukraine'sMinistry of Economy will be responsible for the program execution.

"The RISE Program is part of the World Bank's efforts to support the people and firms of Ukraine amid constant disruptions, power cuts, and labor shortages," said Bob Saum, World Bank Country Director for Eastern Europe. "The program bolsters the Government of Ukraine's focus on private sector development as the primary engine of reconstruction and sustainable growth."

Financing for RISE includes $283 million from the Japan supported ADVANCE Ukraine trust fund, $300 million from the International Development Association (IDA) Special Program for Ukraine and Moldova Recovery, and $10 million from the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF). The program is results-based financing that can be scaled-up as additional funds become available.

The program is an integral part of the international support package for Ukraine to meet its financing needs through the end of 2024. Other ongoing projects include emergency operations for health, education, transport, energy, housing, and agriculture that have mobilized partner resources through a flexible design to disburse funds quickly and can be scaled as necessary when additional financing becomes available.

Since Russia's invasion of Ukraine, World Bank Group-mobilized support has enabled the Government of Ukraine to promote reforms and provide essential services that are reaching more than 15 millionUkrainians.The World Bank Group has facilitated more than $50 billion in financing to support Ukraine, including commitments and pledges from donors including: the United States, Japan, the United Kingdom, Norway, the Netherlands, Spain, Germany, Canada, the Republic of Korea, Switzerland, Sweden, Denmark, Austria, Finland, Iceland, Ireland, Indonesia, Lithuania, Latvia, New Zealand, and Belgium.