ORGANIZATIONAL STRUCTURE OF INTERNATIONAL GRANT AID TO UKRAINE: FROM FRAGMENTATION TO COORDINATION

Keywords: international development support, grant financing, economic recovery, aid effectiveness, coordination, transparency

Abstract

The study examines the organizational structure of international assistance in Ukraine’s economic recovery after Russia’s full-scale invasion in 2022. It highlights the unprecedented scale of aid flows, which by mid-2025 amounted to €139 billion in bilateral support, including nearly €39 billion in grants, and over €106 billion in budget financing. Alongside bilateral donors such as the United States and EU member states, multilateral organizations (the IMF, World Bank, and EBRD) have played an important role, complemented by private initiatives such as the Howard G. Buffett Foundation, which allocated over $800 million to programs in Ukraine. The study highlights controversies of this system. On the one hand, Ukraine benefited from rapid mobilization of resources, innovative instruments, and active involvement of private philanthropy. On the other hand, fragmentation, duplication, and limited coordination created significant challenges. The EU’s Ukraine Facility, with up to €50 billion of blended financing (including €17 billion in grants), illustrates both the strategic importance and the complexity of aligning donor priorities with Ukraine’s recovery needs. Special attention is given to Ukraine’s transformation from a passive recipient to an active architect of aid flows, and instruments for transparency and accountability across projects. The article situates Ukraine’s experience in broader academic debates on the effectiveness, sustainability, and governance of aid, emphasizing that the organizational design of assistance determines its developmental impact, alongside with the volume. The study suggest that Ukraine’s case represents a stress test and for international development finance, and large-scale aid can catalyze resilience and innovation. Robust coordination mechanisms are required to ensure that emergency support translates into long-term economic modernization and development.

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Published
2025-08-25
How to Cite
Laba, O. (2025). ORGANIZATIONAL STRUCTURE OF INTERNATIONAL GRANT AID TO UKRAINE: FROM FRAGMENTATION TO COORDINATION. Economy and Society, (78). https://doi.org/10.32782/2524-0072/2025-78-54
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INTERNATIONAL ECONOMIC RELATIONS