The international community has rallied around Ukraine once more as the UK bolsters the country's economic recovery with a significant $1 billion package of funding, approved by the World Bank. This substantial injection is expected to play a pivotal role in keeping vital public services operational, including hospitals and schools, despite ongoing conflict with Russia.
Confirming the approval during his visit to the Ukraine Recovery Conference in Gdańsk, Deputy Prime Minister David Lammy led the UK Government delegation and underscored the importance of this financial support. The $1 billion commitment forms a crucial part of the UK's extensive fiscal backing for Ukraine since the full-scale invasion in 2022, also set to catalyse over $4 billion in additional financing from international partners.
This substantial funding is designed to drive economic growth, attract private sector investment, and create skilled employment opportunities – all essential components of Ukraine's long-term recovery. The announcement comes alongside a separate commitment from Foreign Secretary Yvette Cooper, who revealed a new package worth almost £290 million, earmarked for supporting Ukraine's energy security, judicial reforms, and its Green Transition Office.
The $1 billion funding is part of the previously announced $5 billion UK loan guarantee commitment to the World Bank, aimed at addressing Ukraine's pressing fiscal needs. Specifically, $500 million will contribute towards a $3.35 billion World Bank operation focused on delivering crucial reforms, enabling private sector financing, and advancing cross-border market integration. The remaining $500 million will support an $880 million Social Protection operation, co-financed by Japan and Germany, pivotal for modernising social assistance, supporting reforms in social policy, disability rights, and labour market inclusion.
Deputy Prime Minister David Lammy reaffirmed the UK's unwavering commitment to Ukraine, stating that this funding will help keep essential services running, ensure hospitals have power, and guarantee teachers receive their salaries. He emphasised the UK's resolve to stand by Ukraine for its defence today and its rebuilding in the future, working towards a just and lasting peace.