Lithuania provides EUR 5 mln via World Bank for urgent recovery effort in Ukraine

  • 2022-10-13
  • BNS/TBT Staff

VILNIUS – Lithuania is providing 5 million euros through the World Bank for urgent reconstruction work in Ukraine, it was announced during a roundtable discussion in in Washington, D.C. on mobilizing financial support for the war-ravaged country.

Lithuania is contributing the additional 5 million euros to the Ukraine Relief, Recovery, and Reconstruction Trust Fund (URTF) set up by the World Bank to help finance immediate recovery efforts in the country, the Finance Ministry said in a press release on Thursday.

"In order to ensure that financial assistance reaches Ukraine as quickly and efficiently as possible, Lithuania will allocate 5 million euros to the World Bank's newly created instrument, the main purpose of which is to contribute, in the near future, to the reconstruction of Ukraine in regions where hostilities are no longer taking place," Finance Minister Gintare Skaiste said in the press release. 

"It is also important that reconstruction in part of the country is starting right now, without waiting for the end of hostilities in other areas," she added.  

The new URTF will cover the preparation for the implementation of reconstruction projects and the implementation of the most necessary projects at this stage, such as the restoration of essential energy, transport and social infrastructure, according to the Finance Ministry. 

The World Bank says the URTF is expected to raise 100 million to 200 million US dollars this year, and then about 1 billion dollars annually.

The contributing donor countries will participate in the URTF Partnership Council, oversee the trust fund's activities, and make recommendations on its strategy and operations.

The ministry notes that this is not the first time Lithuania has provided financial assistance to Ukraine through the World Bank's instruments.

 At the very start of Russia's war in Ukraine, Lithuania provided a grant of 5 million euros to the World Bank's trust fund focused on supporting the Ukrainian economy.

Also, Lithuania has provided a 10-million-euro guarantee for a World Bank loan to Kyiv under the Public Expenditures for Administrative Capacity Endurance in Ukraine (PEACE) project.