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Ukraine's foreign assistance in August amounted to $8.4 bln — Finance Ministry

The Finance Ministry said that $4.5 bln (concessional financing, grants) were received from the European Union and $3.9 bln (grants) - from the United States

MOSCOW, August 30. /TASS/. Ukraine's external budget support in August amounted to $8.4 bln, 65% of which was non-repayable, the Ministry of Finance reported on Friday.

"In August 2024, the general fund of the state budget of Ukraine received about $8.4 bln in external financing. These funds included $5.5 bln of grants, $2.9 bln - concessional financing. Thus, more than 65% of the attracted funds received are non-repayable," the report said.

The Finance Ministry said that $4.5 bln (concessional financing, grants) were received from the European Union and $3.9 bln (grants) - from the United States. The funds from the EU are the first regular tranche (provided upon fulfilling conditions) within the Ukraine Facility instrument. The financing consists of a $2.9 bln loan and a $1.6 bln grant.

Ukraine received a grant from the United States through the World Bank's PEACE in Ukraine project. The funds will be used to pay the salaries of teachers, emergency workers, government employees, and priority social expenses.

In total, Ukraine's external financing in 2024 will amount to $24.5 bln, including $6.6 bln of grants. Since February 2022, assistance has amounted to $98 bln. International assistance is aimed at financing priority social expenditures of the state budget, while all internal resources of the Finance Ministry are directed to the security and defense sector.

Ukraine has drawn up a budget with a record deficit for two years in a row, and expects to cover most of it with aid from Western partners. By 2024, it will amount to $43.9 bln. Meanwhile, in the West, the allocation of new aid packages occurs after lengthy discussions, and partners often warn that Kiev needs to intensify the search for sources of self-financing. The Ukrainian authorities are considering options for increasing taxes, as well as excise duties on fuel and tobacco.

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