Multi-Donor Trust Fund Set Up to Aid Ukraine

WASHINGTON, December 16, 2022-The World Bank announced today that it has established a multi-donor trust fund aimed at supporting the Government of Ukraine as it addresses the relief and the subsequent recovery of the country, driven by critical needs from the ongoing war. The Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF), managed by the World Bank, will provide a coordinated financing and support mechanism to assist the Government of Ukraine to sustain its administrative and service delivery capacity, conduct relief efforts, as well as plan and implement Ukraine’s reconstruction and reform agenda. The Fund will also provide resources for critical advisory and analytical work for relief and reconstruction efforts.

Led by a founding pledge from Switzerland, contributors to the URTF include Austria, Iceland, Lithuania, the Netherlands, Norway, and Sweden for an initial total of $250 million. Canada and Japan have also pledged support to the URTF and other partners are expected to join.

“The devastating human and economic losses caused by this war are mounting every day,” said Anna Bjerde, World Bank Vice President for Europe and Central Asia. “Efficient and coordinated donor support for the Government and the people of Ukraine are critical for Ukraine’s recovery, reconstruction, and reform efforts. The URTF will bring together development partner financing, World Bank expertise, and other key support to meet the massive needs ahead, while also leveraging the Bank’s value add and broad range of financing instruments.”

The uncertainty resulting from the war requires Ukraine’s development partners to take a long-term approach for supporting recovery and reconstruction efforts. Additional potential shocks, such as climate-related disasters, infectious disease outbreaks, pandemics, among other possible hazards, could drive further needs over different time horizons. Therefore, the Fund is structured as a flexible platform to swiftly respond to Ukraine’s evolving context and needs over an initial 10-year period, facilitating the overall responsiveness to new crises and shocks.

The URTF will operate under the overarching Multi-Donor Resources for Institutions and Infrastructure (MRII – МРІЇ) for Ukraine Facility, which is part of broader international support to Ukraine and is coordinated through the World Bank Group.

To date, the World Bank has mobilized $18 billion in emergency financing in support of the people of Ukraine, including commitments and pledges from donors: more than $13 billion of this financing has been disbursed. This vital support has helped address the devastating human and economic impacts of the on-going war.

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