Donor Financing Mechanisms for Supporting Ukraine

The World Bank Group offers a range of trust funds, financial intermediaries, guarantees, co- and parallel financing, and other financial instruments to help the Government of Ukraine sustain essential public services, rebuild critical infrastructure, support the private sector, and more with needs identified in the first, second, and third Rapid Damage and Needs Assessments for Ukraine.

World Bank

Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF)

URTF is a coordinated financing and support mechanism to assist the Government of Ukraine in (i) sustaining its administrative and service delivery capacity and conducting relief efforts and (ii) planning and implementing recovery, resilient reconstruction, and reform agenda. URTF is supporting Framework Projects-emergency operations that mobilize partner resources through an innovative and flexible design. The projects reflect Ukraine's relief needs outlined in the RDNAs and are designed to be adaptable to events on the ground, scalable to integrate additional financing, and rapidly make an impact. The trust fund also plays a critical role in Ukraine's path to reforms, as it supports activities that help implement reforms outlined in the Government's Reforms Matrix, such as through the LEARN program for results.

To date, URTF is supporting the following projects:

• Agriculture Recovery Inclusive Support Emergency (ARISE)

• Health Enhancement and Lifesaving (HEAL)

• Housing Repair for People's Empowerment (HOPE)

• Lifting Education Access and Resilience in Times of Need (LEARN)

• Repairing Essential Logistics Infrastructure and Network Connectivity (RELINC)

• Restoration Project of Winterization and Energy Resources Ukraine (REPOWER)

Learn about the impact that ARISE and HEAL are already having on lives and livelihoods across Ukraine.

Public Expenditures for Administrative Capacity Endurance (PEACE)

The PEACE in Ukraine project is contributing to sustaining the Government's administrative and service delivery capacity, as well as essential services and core government functions. It covers expenditures incurred for the government, education, and healthcare services; first responders' wages; social assistance payments-supported through grants from a dedicated MDTF, IBRD/IDA financing, and donor guarantees. Learn more about PEACE here.

Advancing Needed Credit Enhancement for Ukraine Trust Fund (ADVANCE Ukraine TF)

The ADVANCE Ukraine TF is aimed at providing IBRD lending credit enhancement for projects and operations in Ukraine. It follows the World Bank's bilateral shareholder guarantee framework and is financed through the issuance and deposit of promissory notes. To date, the Government of Japan has contributed $7 billion in promissory notes. The first $1.5 billion Ukraine Relief and Recovery Development Policy Loan was approved by the World Bank's Board of Executive Directors on June 29, 2023. Subsequent World Bank loans backed by credit enhancement from the ADVANCE Ukraine TF were made to support projects in housing, agriculture, social protection, and sustaining critical government services.

Financial Intermediary Fund (FIF) for Ukraine (under preparation)

The FIF for Ukraine is planned to provide a coordinated financing and support mechanism to assist Ukraine in sustaining its administrative and service delivery capacity, and in planning and implementing its recovery, reconstruction, and reform agenda. This fund will allow streamlined access by Ukraine's key implementing partners. On October 10, 2024, the World Bank's Board approved the planned establishment of this FIF. The World Bank Group does not handle or deal in any way with immobilized Russian assets or any investment earnings on those assets.

IFC

Ukraine Economic Resilience Action (ERA) Program

IFC's Ukraine ERA Program will support projects during Russia's invasion of Ukraine and initial stages of reconstruction. The program will focus on the following strategic priorities: (1) sustaining economic activity and supplying essential goods; (2) supporting vital economic infrastructure; and (3) addressing the needs of displaced people and affected municipalities. IFC will deploy $2 billion over the next two years, including $1 billion of own capital and $1 billion from donors to mitigate risks. IFC will further crowd in additional private financing for an expected leveraging of donor financing by 3-4x across the portfolio. Since the invasion, IFC has provided financing of $1.6 billion, with $1.1 billion committed from its own account and $530 million mobilized. This financing will support business resilience, particularly in key sectors such as agribusiness, by providing working capital, trade finance, and risk sharing facilities. IFC will also underpin early recovery through support to critical infrastructure for energy, transport, municipal services, and housing. In parallel, for project development IFC will prepare leveraging backing from partners to maximize private capital mobilization for reconstruction.

As of end September 2024, IFC has raised $748 million from Switzerland, Netherlands, the UK, European Commission, France, Japan, and Belgium.

MIGA 

Support to Ukraine's Reconstruction and Economy Trust Fund (SURE TF)

The SURE TF was established to help MIGA deploy a two-fold strategy in Ukraine:

• enable private investment by providing guarantees (political risk insurance (PRI) and credit enhancement) to investors and lenders,
• ensure that projects are implemented in accordance with global best practices on meeting integrity, environmental, social, and climate standards.

Amidst limited availability of private reinsurance, SURE TF enables MIGA's guarantee issuance in Ukraine by sharing up to 75% of the risk. In the immediate term, MIGA will provide guarantees to support trade in essential goods, continued bank lending to firms including Small and Medium-sized Enterprises (SMEs), as well real sector projects which have clear demonstration effects. Once peace returns, MIGA expects to use the reinsurance market to provide PRI guarantees for real sector projects at scale.

Since the start of the invasion and as of October 2024, MIGA has issued $227 million in six new guarantees using $48.3 million in donor funds, which implies that $1 of donor funding supports $4.7 in guarantees in Ukraine.

The SURE's fund size as of October 2024, which apart from contributions also accounts for administrative fees, investment income, and SURE TF's share of premium income, was $114.12 million.

Last Updated: Nov 21, 2024

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