NEW DELHI: The International Monetary Fund on Thursday approved an $8.1 billion, four-year loan program for Ukraine, immediately releasing $1.5 billion to help sustain government operations as the war sparked by Russia’s invasion stretches into its fifth year.

The IMF said the new Extended Fund Facility will underpin a broader $136.5 billion international aid package for the country, which recently marked four years since Russia launched its full-scale assault.

The agreement replaces a $15.5 billion program approved in 2023 and is intended to preserve economic stability and ensure continued public spending, according to the Fund.

Ukrainian Prime Minister Yulia Svyrydenko welcomed the loan, calling it part of a comprehensive financing plan designed to cover a projected $136.5 billion budget gap over four years. That package includes a €90 billion loan from the European Union.

Writing on Telegram, she said securing guaranteed international financial backing in the fifth year of full-scale war — amid continued attacks on Ukraine’s energy infrastructure — was critical to ensuring stable state operations.

A joint report released this week by the World Bank, the European Union, the United Nations and the Ukrainian government estimated that rebuilding Ukraine over the next decade will cost $588 billion.

IMF Managing Director Kristalina Georgieva said the new arrangement would address Ukraine’s balance-of-payments needs, restore medium-term external sustainability and strengthen prospects for reconstruction, growth and eventual European Union membership.

“Ukraine and its people have endured more than four years of a devastating war with extraordinary resilience,” Georgieva said, praising authorities for safeguarding macroeconomic and financial stability, increasing domestic revenues and advancing key reforms.

She added that officials remain committed to overcoming long-standing barriers to growth, including by intensifying anti-corruption efforts, tackling tax evasion, reforming energy markets and strengthening financial sector infrastructure.

Georgieva noted that the program would be swiftly adjusted if peace negotiations succeed.