UK Government bolsters Ukraine’s economic recovery, with World Bank approving $1 billion in UK-backed finance

• Government announces latest $1 billion tranche of UK fiscal support that, pooled with partners' support, will provide more than $4 billion in additional financing for Ukraine 

• Deputy Prime Minister leads UK Government delegation to the Ukraine Recovery Conference in Gdansk  

Ukraine's resilience and recovery will receive a $1 billion boost through UK-backed funding announced by the Deputy Prime Minister, David Lammy, helping to keep vital services running throughout the war.

A $1 billion UK-backed package, approved by the World Bank, will unlock more than $4 billion in additional financing to help keep hospitals, schools and essential public services operating across Ukraine. The announcement comes as the Deputy Prime Minister leads the UK delegation to the Ukraine Recovery Conference in Gdask today (Thursday 25 June).

During the conference, the Deputy PM confirmed approval of the latest $1 billion tranche of fiscal support for Ukraine. The funding will help unlock private sector investment, support economic growth and create skilled jobs, strengthening Ukraine's long-term recovery and resilience.

Alongside international partners, the UK is using its economic strength to unlock bigger global backing, ensuring Ukraine can keep functioning and recover faster. 

This comes as the Foreign Secretary, Yvette Cooper, announced a new package worth almost £290 million to bolster Ukraine's recovery and energy security. This investment will support judicial reforms, funding for an EU Anti-Corruption Initiative and backing for Ukraine's Green Transition Office. 

Deputy Prime Minister David Lammy commented:  

We're backing Ukraine to keep its country running, keep the lights on in hospitals and make sure teachers get paid.

This is the largest component of the UK's fiscal support for Ukraine since Russia's illegal invasion in 2022 and it will protect the public services that brave Ukrainians depend on.

The UK will be at Ukraine's side for its defence today and its rebuilding in the future. We are resolute in our pursuit of a just and lasting peace.

The UK has $5 billion in committed loan guarantees to provide additional support for World Bank lending to Ukraine. This announcement of $1 billion in support is the latest tranche of support under this commitment.  

Further information:

• The $1bn announced today marks the allocation of funding from a previously announced $5bn loan guarantee commitment to support Ukraine's urgent fiscal needs. Of this:   

• $500m will go towards supporting a World Bank operation worth $3.35bn. This project has delivered crucial reforms, enabling private sector financing and investment; attracting skilled labour to jobs; and advancing cross-border market integration.  

• $500m will go towards a Social Protection operation worth $880m and co-financed by Japan and Germany. This operation is instrumental to modernising social assistance in Ukraine, supporting reforms in social policy, disability rights and labour market inclusion.