World Bank mobilises additional $530mn to support Ukraine as territories annexed by Russia

World Bank on Oct 1, Saturday announced an additional $530 million in aid to support Ukraine as Moscow annexed four of its regions, as well as to cover essential "public services such as health, education, and social protection." In a statement, the World Bank noted that the IBRD financing was supported by timely loan guarantees provided by the UK— an estimated $500 million— and Denmark, approximately $30 million. The funding was mobilised under the Public Expenditures for Administrative Capacity Endurance in Ukraine (PEACE) Project in order to "urgently" meet Ukraine's war needs, the bank stressed. 

"The toll of destruction, damage, and dislocation in Ukraine is staggering and continues to grow," said Anna Bjerde, the World Bank regional vice president for Europe and Central Asia.

"The Ukrainian people have a long road to recovery ahead and development partners will need to continue to pull together to support Ukraine’s reconstruction," she continued. 

World Bank's newly-approved aid will help the Ukraine government's capacity, including the provision of core public services such as health, education, and social protection amid the ongoing hostilities with its neighbour that have wreaked widespread human lives toll, infrastructure damage, and lack of basic amenities such as drinking water, food and clothing.

"Support of the international community so far has been impressive, and we are so grateful to the people of the United Kingdom and the Kingdom of Denmark for their continued assistance," said Bjerde. The latter reiterated that the Ukrainians have a long road to recovery ahead of them as the destruction caused by the war is humongous.

A man walks past a damaged building in Kyiv following a rocket attack. Credit: Associated Press

 "The development partners will need to continue to pull together to support Ukraine’s reconstruction," emphasised Bjerde, focusing on rebuilding the war-torn country. To date, since Russia's President Vladimir Putin ordered what he called a "special military operation" in Ukraine in February, the World Bank has mobilised nearly $13 billion in emergency financing for Ukraine. This has included commitments and pledges from donors, of which $11 billion has been fully disbursed. 

“Our most recent analysis shows that the total long-term cost of reconstruction and recovery in Ukraine are enormous, with the needs even for the next three years totalling well over $100 billion, a figure that is expected to grow as the war continues,” Arup Banerji, World Bank Regional Country Director for Eastern Europe, stressed. But he noted that Ukraine is focusing on immediate social needs and ensuring that urgent recovery and repairs are completed on priority. The government has also been focused on enormous tasks around reconstruction.  

"We welcome the continuous generosity and commitment of international partners in ensuring that the people of Ukraine can both survive this crisis and prosper in the future," Banerji said. 

People look at the gutted remains of Russian military vehicles on a road in the town of Bucha, close to the capital Kyiv, Ukraine. Credit: Associated Press

Europe, US pledge more weapons for Kyiv 

Weapons leaders from the US and Europe earlier this week huddled to gather in Brussels and pledged more advanced weaponry for Kyiv's forces to launch counteroffensives as Moscow annexed four Ukrainian territories. Washington announced in a statement, following the meeting, that it will fund the purchase of 18 new High Mobility Artillery Rocket Systems [HIMARS] and other weapons to counter Russia's superior air power and drones. This, arguably, would be more than double the number of launchers that will turn the course of the war.

The new weapons were a part of the $1.1 billion package for the Ukraine military announced by the Pentagon this week. The HIMARS, stated the Pentagon at the summit, might take “a few years” to reach Kyiv. The decision to supply more lethal weaponry followed after Putin called up 300,000 conscripts, and threatened to use the nuclear weapons, categorically stressing that he isn't "bluffing."