(Adds IFC commitments)
By Andrea Shalal and Katharine Jackson
WASHINGTON, April 14 (Reuters) - Ukraine secured
promises of $5 billion in additional funding to support its
ongoing fight against Russia amid "fruitful meetings" in
Washington this week, Ukrainian Prime Minister Denys Shmyhal
told reporters on Friday.
Shmyhal met with representatives of the International
Monetary Fund, the World Bank and the European Investment Bank
as well as top U.S. officials, on the sidelines of the spring
meetings of the IMF and World Bank.
He said Ukraine received new pledges of additional support
from Switzerland, Denmark and a number of other countries during
the meetings, as well as an agreement from U.S. aircraft maker
Boeing Co to relieve Ukrainian companies of $200 million
in previous commitments. Kyiv expected to receive more support
during an upcoming conference in London, he added.
"The international partners have reassured us of their
long-term support," Shmyhal said, describing his meetings in
Washington, and referring to total financing of $115 billion
over the next four years that was leveraged by the IMF's
approval last month of a $15.6 billion loan.
Ukraine needs about $14 billion in funding this year to
close a budget gap, Shmyhal said, noting that the United States
would provide $2.3 billion to plug the hole, while the European
Union would provide 1 billion euros ($1.10 billion).
In addition to Switzerland and Denmark, he said Spain,
Ireland, Japan, Latvia, Lithuania, Iceland and the Netherlands
also promised more aid.
U.S. Treasury Secretary Janet Yellen, who paid a surprise
visit to Kyiv in February and met with Shmyhal again on
Thursday, repeatedly urged finance ministers and central banks
to maintain support for Ukraine, the Treasury Department said.
Yellen on Thursday said she told Shmyhal the United
States had provided significant economic support to Ukraine
since the start of the war in February 2022, and would deliver
more in coming months, on top of security and humanitarian aid.
'ON LIFE SUPPORT'
Shmyhal said Ukrainian officials met with a number of U.S.
cabinet secretaries in addition to Yellen, including Defense
Secretary Lloyd Austin and U.S. Commerce Secretary Gina
Raimondo, with a big focus on laying the groundwork for
Ukraine's recovery and attracting foreign investment.
He said the discussions also touched on Ukraine's insistence
that the United States and other allies confiscate Russian
assets to help cover the cost of rebuilding Ukraine - a sum put
at $411 billion by the World Bank in a recent estimate.
He urged the Group of Seven advanced economies to reaffirm
their support for Ukraine and discuss the confiscation issue
during an upcoming leaders summit in Japan, which is leading the
G7 this year.
The Netherlands and Switzerland also pledged support for the
International Finance Corp's $2 billion Economic Resilience
Action program that is designed to ramp up support for Ukraine’s
private sector and boost economic resilience amid the war.
The IFC program aims to leverage these donor funds using
private sector investments, which will be needed to help cover
the staggering cost of Ukraine's recovery.
"A strong private sector is essential to help Ukraine's
economy recover and support reconstruction efforts," said
Makhtar Diop, the IFC's managing director. "Ukraine's economy
remains on life support, and we will continue working with other
development partners to provide the guarantees and grants the
private sector needs."
The World Bank also announced $200 million in grant
financing for a project to Ukraine’s energy infrastructure, with
some $300 million in additional funding envisaged to come from
partners through grants and other contributions.
($1 = 0.9094 euros)
(Reporting by Andrea Shalal and Katharine Jackson; editing by
Susan Heavey, Diane Craft and Paul Simao)
