The latest financing under the World Bank’s Public Expenditures for Administrative Capacity Endurance in Ukraine(PEACE) project lifts the total to US$20.6 billion and will support salaries in core government functions and sectors such as healthcare and education while allowing Kyiv to pay pensions and support internally displaced people.

“One year into Russia’s invasion of Ukraine, the world continues to witness the horrific destruction inflicted on the country and its people,” said World Bank group president David Malpass.

He said that US$18.5 billion of the total funds mobilised had been disbursed, reaching more than 12 million Ukrainians.

The additional funding was announced a day after US Treasury secretary Janet Yellen said that Washington was preparing an additional US$10 billion in economic assistance for Ukraine and called on the International Monetary Fund to pull together a loan programme for Ukraine.

Ukraine is seeking a US$15 billion multi-year IMF package.

The World Bank-facilitated financing under the PEACE program is set up to minimise the risk of corruption. The World Bank transmits funds to cover Ukraine’s expenditures a month after they are made, once it has verified that the money has gone to the government employees, pensioners and other recipients.

The latest Usaid funds will be transmitted to the government of Ukraine after the World Bank verifies eligible expenditures.

The total of US$20.6 billion in emergency financing comes from commitments and pledges from the US, Britain, the Netherlands, Spain, Norway, Germany, Canada, Switzerland, Sweden, Denmark, Austria, Finland, Ireland, Lithuania, Latvia, Iceland, Belgium, and Japan.