The Minister for Foreign Affairs, Simon Coveney, T.D. has today announced additional funding of €30 million in support for the Governments of Ukraine and Moldova. The funding is aimed at helping to mitigate the impact of Russia’s war on Ukraine.
As part of this allocation, the Minister has announced:
- €20 million in funding to the World Bank Multi-Donor Trust Fund in support of Ukraine;
- €4 million in funding to the European Bank for Reconstruction and Development in support of Ukraine;
- €1 million in funding to the Council of Europe Development Bank in support of Ukraine, and;
- €5 million in funding to the World Bank Multi-Donor Trust Fund in support of Moldova.
The funding will be channelled quickly and efficiently through trusted partners, to assist the Governments of Ukraine and Moldova address immediate challenges arising out of the war in Ukraine, with an emphasis on support for the civilian population.
The funds will go towards the reconstruction of schools and health care facilities in Ukraine, support for public services, such as pensions, health service delivery and wages of emergency service staff and countering the impact of the energy crisis. The funding will also go towards helping Ukraine’s small and medium enterprises remain viable.
In Moldova, the funds will go towards mitigating the impact of the war in Ukraine on refugees and households, supporting the provision of essential public services, and efforts to increase resilience in the energy sector.
Speaking ahead of today’s announcement, Minister Coveney said:
“I am pleased today to be able to announce this additional funding for Ukraine and Moldova. Since the beginning of this illegal and unjustified invasion of Ukraine, Ireland has been at the forefront of international efforts to combat Russia’s aggression. We have repeatedly called on Russia to end its war of choice, to comply with its obligations under international law, and to withdraw all forces unconditionally from the sovereign territory of Ukraine.
“It is vital that we continue to support Ukraine, particularly in the context of ongoing Russian attacks on civilian infrastructure, and ahead of what will be a difficult winter. In addition to this financial support, Ireland will continue to work on ensuring accountability for Russia’s actions in Ukraine - including possible war crimes and crimes against humanity.
“I am proud of what we have done to stand alongside Ukraine so far. We will continue to do so for as long as it takes.”
The Minister added:
“Moldova’s response to Russia’s illegal and unprovoked invasion of Ukraine has impressed Ireland, and indeed all of Europe. The generous welcome the Moldovan people have given to refugees from Ukraine has been remarkable. The funding announced today will assist Moldova in meeting the huge challenges it faces, particularly as winter sets in.”
ENDS
Press Office
13 December 2022
Notes to Editors:
On 9 November 2022, the Government approved the provision by the Department of Foreign Affairs of €30 million in 2022 to provide institutional support for the stability of the governments of Ukraine (€25 million) and Moldova (€5 million) to mitigate the impact of Russia’s war on Ukraine.
The funding will be disbursed as follows:
- 1 €20,000,000 to the World Bank Group for the Multi-Donor Trust Fund for Co-financing of the Public Expenditures for Administrative Capacity Endurance (PEACE) in Ukraine.
- 2 €4,000,000 to the European Bank for Reconstruction and Development Small Business Impact Fund
- 3 €1,000,000 to the Council of Europe Development Bank (CEB) Ukraine Solidarity Fund
- 4 €5,000,000 to the World Bank Group for the Multi-Donor Trust Fund for Co-financing of the Moldova Development Policy Program
€20,000,000 to the World Bank Group for the Multi-Donor Trust Fund for Co-financing of the Public Expenditures for Administrative Capacity Endurance (PEACE) in Ukraine. This fund is intended to operate as a form of supplemental assistance for the budget support already provided by the World Bank. The aim is to channel financial resources quickly, efficiently and with the least cost to Ukraine’s budget. It is, in essence, budget support to the Ukrainian government via an intermediary, which is best placed to provide the government with liquidity and to support continued spending on public services, such as pensions, social assistance, grants, payments to hospitals and clinics for health service delivery and wages to State Emergency Service staff.
€4,000,000 to the European Bank for Reconstruction and Development Small Business Impact Fund. The EBRD established the Small Business Impact Fund (SBIF) to put the Bank’s partnerships with donors supporting SME-related activities on a more strategic footing. While the overall Fund is global in operation, Ireland’s contribution will be allocated to SMEs in Ukraine who are playing an important role in maintaining economic activity under extraordinary circumstances.
€1,000,000 to the Council of Europe Development Bank (CEB) Ukraine Solidarity Fund. The Ukraine Solidarity Fund addresses social needs created by the war, such as emergency assistance, resettlement and integration of refugees and internally displaced persons. The announcement that Ireland would provide seed funding for the bank was made also in the context of our recent Presidency of the Council of Europe Committee of Ministers. In time, it is expected that the Fund will be used for the reconstruction of critical social infrastructure in Ukraine, including schools, housing and health facilities.
€5,000,000 to World Bank Group for the Multi-Donor Trust Fund for Co-financing of the Moldova Development Policy Programme. The aim of this funding it two-fold; to mitigate the impact of the war in Ukraine on refugees and households, and to build resilience and enhance competitiveness to reduce vulnerabilities to future shocks. The funding will assist Moldova in responding to unprecedented challenges arising from the war in Ukraine, while maintaining momentum on the long-term agenda of building resilience and enhancing competitiveness.