U.S. and Japan Contribute to Ukraine Trust Fund

Washington, May 6, 2024 – The United States and Japan contributed to the Support for Ukraine’s Reconstruction and Economy (SURE) Trust Fund, bringing its total to nearly $110 million. The trust fund was launched by the Multilateral Investment Guarantee Agency of the World Bank Group (MIGA) in February 2023. The United States contributed $25 million, and Japan donated an additional $11 million, bringing its total contribution to $36 million, the largest toward the trust fund.  

This is the first time the United States is contributing to the fund. Japan was the inaugural donor to the SURE Trust Fund, enabling MIGA to kick off its guarantee issuance in Ukraine. In the near term, MIGA is issuing guarantees to finance trade and essential goods, maintain credit and liquidity for small businesses, and support select real sector projects. In the long run, MIGA will issue political risk insurance at scale to the real sector and support post-war reconstruction. 

“We thank the governments of the United States and Japan for their generous support for the SURE Trust Fund. This enables MIGA to provide crucial support to Ukraine’s economy during the ongoing war,” said Hiroshi Matano, Executive Vice President of MIGA. “The magnitude of damage caused by Russia’s invasion of Ukraine requires high-leverage solutions that mobilize private capital to preserve economic activity and rebuild critical infrastructure.” 

“The United States is proud to support the critical work that MIGA is doing to help engage the private sector and rebuild the country after the devastating loss caused by Russia’s illegal and brutal war on Ukraine. The United States recognizes the important role that MIGA plays in ensuring first loss guarantees and providing a critical safety net to businesses operating in Ukraine,” said Felice Gorordo, who represents the United States on the World Bank Group boards. "We will continue to be a champion for SURE TF and MIGA as a catalyst in bringing about private investment to Ukraine.” 

As one of the earliest champions of the trust fund, Japan is committed to help Ukraine overcome the impact of the Russian invasion on its economy, and support reconstruction by employing private capital. 

“MIGA’s guarantees provide a lifeline to Ukraine’s private sector during the ongoing war and will support post-war rebuilding. Japan applauds MIGA’s expertise in mobilizing private capital and easing economic pain caused by the war,” said Takahiro Tsuda, Director of the Multilateral Development Banks Division at Japan’s Ministry of Finance. “We continue to advocate for the increased support for the trust fund, emphasizing the importance of providing guarantees through this initiative.” 

MIGA has been among very few providers of insurance in Ukraine, issuing more than $215 million in coverage during the two years since the invasion began. Through these efforts, MIGA has supported new and existing cross-border investors in Ukraine. MIGA’s guarantees serve as a key risk mitigation tool, ensuring the continuity of private sector operations and investments for the country’s continued economic activity during the ongoing conflict. MIGA’s support also enables these projects to operate transparently, and in alignment with global standards and best practices concerning integrity, environmental, social, and climate aspects, among other considerations.  

In September 2023, for example, MIGA issued $9.1 million in guarantees to UIPH Ukrainian Industrial Property Holding Limited of Cyprus for its investments in the form of equity and a shareholder loan into the M10 Industrial Park Project against the risk of war and civil disturbance for up to 10 years.  

In addition to Japan and the United States, Norway has contributed $22 million, the United Kingdom £20 million, and Belgium €1 million to the trust fund.   

About MIGA 

MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment in emerging economies by helping to mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war and civil disturbance; and offering credit enhancement to private investors and lenders. Since its creation, MIGA has issued over $81 billion in guarantees across 123 developing countries, supporting more than 1,000 projects. Over the past decade, MIGA’s guarantees have helped provide new or improved electricity services to more than 78 million people.  

For more information, please visit: https://www.miga.org  

Stay updated and follow us at https://twitter.com/MIGA and https://www.linkedin.com/company/wb-miga   

Contact:  

In Washington:  

Elizabeth Howton, (202) 458-5922,  ehowton@worldbankgroup.org