Finland allocates additional EUR 92 million to support to Ukraine and countries affected by Russia’s aggression
Finland’s support to Ukraine, channelled through the World Bank Group, will be used to strengthen basic public services, repair critical infrastructure, promote policy reforms and lay the foundation for Ukraine’s reconstruction and recovery. Part of the support will be used to help the least-developed countries affected by the Russian invasion and by other global crises.
The International Development Association (IDA) of the World Bank Group launched a new financing programme, the Crisis Facility, earlier this year to scale up support to Ukraine and Moldova and to other countries affected by Russia’s aggression against Ukraine.
Finland contributes EUR 92 million to the IDA Crisis Facility from development cooperation funds administered by the Ministry of Foreign Affairs.
“This additional funding shows Finland’s unwavering support to Ukraine in line with the Government Programme. We will also support improving food security in countries affected by Russia’s invasion,” says Minister for Foreign Trade and Development Ville Tavio.
Finland will allocate EUR 62 million to Support Programme for Ukraine and Moldova Recovery: EUR 12 million of the amount will be allocated as a grant and EUR 50 million as a loan. In addition, Finland will provide EUR 30 million in loans to countries affected by Russia’s aggression to help them prevent the spread of infectious diseases, among other efforts.
In Ukraine, the Special Program for Ukraine and Moldova Recovery will address needs in the health, transport, energy, agriculture, housing and social security sectors. It will help improve access to healthcare services, modernise medical care, promote the availability of services addressing acute energy deficits, repair vital road and railway networks and residential buildings and sustain agricultural activities. It will also accelerate long-term efforts to support Ukraine’s recovery and the reconstruction of critical sectors. Particular attention will be paid to the rights of women, girls and persons with disabilities.
“We must ensure that critical services are functioning despite the war,” says Minister Tavio.
In Moldova, the IDA Crisis Facility will primarily help cover the costs of receiving people fleeing Ukraine and finance development programmes and crisis preparedness supporting Moldova’s economic and social recovery.
The International Development Association (IDA) is an experienced and reliable actor in emerging economies and crisis areas. It is an important partner in the implementation of Finland’s development policy objectives. Finland is an IDA member and shareholder.
- Emmi Oikari, Director, Unit for Development Finance and Private Sector Cooperation, tel. +358 295 350 964
- Sirpa Oksanen, Director, Unit for Eastern Europe and Central Asia, tel. +359 29 535 0472