World Bank approves additional $2 billion aid for Ukraine

The new financing will be used to pay wages for government and social workers. PHOTO: AFP

WASHINGTON (AFP) - The World Bank on Tuesday (June 7) announced an additional US$1.5 billion (S$2 billion) in aid for Ukraine, bringing the total planned support package to more than US$4 billion.

The Russian invasion of Ukraine in late February has created a humanitarian crisis and devastated the country's economy, destroying infrastructure and blocking key grain exports, as well as draining the government's ability to pay its bills.

The new financing will be used to pay wages for government and social workers, the development lender said in a statement, noting that with the new funds, nearly US$2 billion has been disbursed so far.

The World Bank said in a statement that the latest funding is supported by financing guarantees from Britain, the Netherlands, Lithuania and Latvia. The project is also being supported by parallel financing from Italy and contributions from a new Multi-Donor Trust Fund.

The World Bank "is providing continuing support for Ukraine and its people in the face of the ongoing war", bank president David Malpass said.

"We are working with donor countries to mobilise financial support and leveraging the flexibility of our various financing instruments to help provide Ukrainians with access to health services, education and social protection."

However, Ukraine President Volodymyr Zelensky has said his government needs a total of US$7 billion a month in aid to continue to function.

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