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6.1.3 Budget dynamics - funding
The European Investment Bank (EIB), with EU budget support, approved €1.59bn of financing for Ukraine on July 25, with €1bn to be released immediately. It will help rebuild infrastructure and resume services. And support energy, transport and education projects for the future, European Commission President Ursula von der Leyen said in a tweet.
Ukraine receives first 500 million euros of macro-financial assistance from EU. Prime Minister Denys Shmyhal said on Aug. 1 that Ukraine had received the first half of the 1 billion euro aid to overcome financial consequences of the war. The second half is expected to come on Aug. 2.
Zelensky asks Macron to unblock EU macro-financial assistance ‘stalled in Europe.' During a call on Aug. 1, President Volodymyr Zelensky asked his French counterpart Emmanuel Macron to help release the EU’s second tranche of macro-financial assistance to Ukraine worth 8 billion euros ($8.2 billion). Earlier, European Commission spokesperson Arianna Podesta said there are currently not enough funds to provide Ukraine with the second tranche.
US to provide Ukraine with an additional $550 million security assistance package. The new military aid will include 75,000 rounds of 155mm artillery ammunition and an undisclosed amount of ammunition for the HIMARS rocket launchers to help the country meet "critical security and defence needs," according to the Pentagon.
Ukraine wants to have new $15-20 billion loan program with IMF by end of year. Kyrylo Shevchenko, governor of Ukraine's central bank, told Reuters that a request aimed at stabilizing the country's shrinking economy had already been submitted to the International Monetary Fund. "The IMF has always acted as Ukraine's partner during the war," said Shevchenko.
The US has allocated $500M to a special EBRD fund to support Ukraine.
The US Treasury Department signed an agreement with the EBRD and will contribute $500M to support Ukraine and other affected countries affected by the war, announced Ukraine's ambassador Oksana Markarova. According to her, the US contribution will make it possible to secure at least $1B in financing from the EBRD to provide immediate crisis support, mainly to Ukraine. These funds will be used to meet energy and food security needs and will include support for critical transport infrastructure and logistics, as well as direct financial support to farmers and exporters. In addition, the money will be used to support vulnerable populations and internally displaced persons.
Ukraine will receive an additional $351M from Canada. The Cabinet of Ministers has changed the terms for external state borrowing in 2022 by raising a loan from Canada, the Ministry of Finance reported. In particular, the amount of the preferential loan will be increased by 0.45B Canadian dollars ($351M) within the framework of the credit agreement between Ukraine and Canada. As a result, the loan amount will reach CAD 1.45B ($1.131B). The funds will go to the state budget to ensure priority social and humanitarian payments. Previously, on June 17, Ukraine received a CAD 1B ($773M) loan from Canada on preferential terms. These are the first funds that Ukraine has
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