Ukraine secures World Bank assistance as data shows GDP dropped 29% in 2022

April 13 (UPI) -- Ukraine secured financial assistance from the World Bank to restore its ailing energy sector as economic data show its gross domestic product has plummeted amid Russia's full-scale invasion.

Ukrainian Prime Minster Denys Shmyhal signed an agreement Wednesday with the World Bank's Managing Director for Operations, Anna Bjerde, for a grant from a Multi-Donor Trust Fund allocating $200 million to help restore Ukraine's energy system.

"The funds raised from the World Bank will be used to rebuild the power grid and heat supply systems in Kyiv, Kharkiv, Mykolaiv, Sumo and the cities of Chernihiv region," Shmyhal said.

"This winter we have defeated Russia in battle for light and are already preparing for the next heating season," Shmyhal continued.

Sustained Russian attacks on Ukraine's energy infrastructure have caused sporadic energy interruptions which have affected millions of people.

Negotiations for further financial assistance from the International Monetary Fund and the World Bank are currently underway.

"We discussed joint work under the Financial Rammstein Framework, as well s the preparation of a war risk insurance project for foreign investment. This is a key tool to attract these investments right now, without waiting for the war to end," Shmyhal said.

Data show that Ukraine's economy has dropped drastically as a result of Russia's full-scale invasion that began last year.

Ukraine's State Statistics Service published data Wednesday showing its gross domestic product dropped by 29.1% in 2022.

The decline was slightly better than the government's predicted decline of 30% but represented the greatest decline in Ukraine's GDP since it fell 9.8% in 2014 when Russia invaded Crimea.

The economy was greatly impacted by Russia's blockade of Ukraine's ports in the Black Sea, and restrictions on its exports of grain, total exports declining 35% from 2022.

The Ukrainian government still expects its economy to grow by 1% in 2023, as it anticipates improvement in the transport retail and construction sectors.

Conversely, Russian inflation dropped to 3.5%, which is in accordance with the Russian Central Bank's goal of keeping inflation below 4% though financial analysts believe inflation will spike again.