The Center for Fiscal Policy Research presents an independent shadow report on the performance of the Fund for Eliminating the Consequences of Armed Aggression in 2024. The rapid launch of the Fund, the complex decision-making architecture, and the lack of systematic monitoring have led to managerial and procedural disruptions that affect the pace of recovery. For this reason, the Center’s experts conducted a verification of the Fund’s expenditures by analyzing open financial data, Treasury payment orders, government decisions, and their own analytical findings.
As a result, the study identifies:
where imbalances in the allocation and use of funds arise;
which funding areas are effective and which are lagging behind;
what exactly is slowing down the implementation of recovery projects.
Our analysts also assessed the execution rate of budget programs, the share of unused funds, regional coverage, and the concentration of funding among spending units and contractors.
Read the full version of the study for a detailed breakdown of government decisions, the dynamics of fund utilization, and a comparative analysis of 2023–2024.
Executive Summary
The full-scale Russian invasion caused extensive damage to Ukraine’s social, housing, and critical infrastructure. In response, the government established the Fund for Eliminating the Consequences of Armed Aggression (hereinafter – the Fund), which became a key recovery instrument. Its operation is accompanied by strong public and international demand for transparency, efficiency, and accountability.
The purpose of this study is to assess the effectiveness of the Fund’s formation and use in 2024, identify patterns and imbalances in the allocation of financing, and determine the challenges and constraints of budget management that slow down recovery processes.
In 2024, the Fund accumulated UAH 24.575 billion. According to government decisions, UAH 23.269 billion (94.7%) was allocated. Actual expenditures amounted to UAH 16.953 billion, or 72.9% of the allocated amount, including UAH 0.562 billion in accounts receivable (of which UAH 0.131 billion is overdue) under the budget programs of the Recovery Agency. As of the end of 2024, the Fund’s balance stood at UAH 7.621 billion, of which UAH 1.306 billion remained unallocated. Revenues to the Fund decreased significantly to UAH 24.6 billion compared to nearly UAH 62 billion in 2023. At the same time, there is a positive trend in actual fund utilization: 72.9% of allocated funds were used in 2024, compared to 61.5% in 2023.
As a result of consolidating expenditure data for 2024, a verified database of 436 projects was compiled, with a total allocated (planned) amount of UAH 16.9 billion. Nearly 5.1 thousand Treasury payment orders obtained from the E-data portal were processed and aggregated, more than twice the number recorded in 2023. In 2024, the Fund’s resources were actually used for 372 projects (85% of the total), with UAH 16.7 billion planned and UAH 11.8 billion spent (70% of the planned expenditures). Funding was canceled for 32 projects during the year, and another 32 projects received no funding at all (with nearly UAH 190 million planned for these projects). Overall, 73% of the Fund’s allocated resources were verified and analyzed in this study.
90% of the Fund’s expenditures were used in accordance with: Resolution No. 247, within the subvention for eliminating the consequences of armed aggression – UAH 5.4 billion (46% of all verified expenditures); and Resolution No. 566, within the experimental construction of main water pipelines – UAH 5.2 billion (44% of all verified expenditures). In 2024, implementation showed significant regional concentration: Dnipropetrovsk region received nearly UAH 5.3 billion, 99% of which was allocated to the construction of three main water pipelines. Kyiv and Kharkiv regions also ranked among the leaders in both the number and value of funded projects.
A significant share of projects planned for financing in 2024 carried over from 2023—251 projects (58%). Their analysis revealed a number of systemic inconsistencies in selection and implementation mechanisms. The top 10 projects by actual funding absorbed UAH 6.65 billion, accounting for nearly 57% of all Fund expenditures. The main resources were directed toward three strategic water pipeline projects in Dnipropetrovsk and Zaporizhzhia regions, which became a critical response to the destruction of the Kakhovka Hydropower Plant.
The largest share of actually utilized funds, as in 2023, was allocated to 24 projects involving the construction/reconstruction of water pipelines and water supply systems (nearly UAH 6.4 billion, with a utilization rate of 92%). At the same time, housing recovery—despite having the largest number of projects (255)—showed one of the lowest absorption rates: 44% or UAH 2.3 billion. A similar situation was observed in the construction/repair of civil protection facilities and the restoration of municipal infrastructure (38% or UAH 358 million).
Uneven fund utilization was reflected in sharp increases in expenditures in May and December 2024 (accounting for 60% of total spending). More than half of the Fund’s resources were disbursed during the top 10 days with the highest payments, primarily within the experimental construction of main water pipelines (UAH 5 billion). A notable feature is the concentration of spending in December: on December 27 alone, nearly 500 payments were made across 151 projects totaling UAH 756 million. Additionally, on that day, 26 projects received full (100%) funding. The largest allocation—UAH 271.1 million—was directed to 32 projects whose co-financing level previously stood at 21–40%.
Assessing the effectiveness of the Fund’s expenditures requires a comprehensive approach that considers not only financial indicators but also the coherence of planning, implementation, and reporting. Systemic challenges affecting management efficiency include issues in budget planning and fragmented analytical data, multiple funding sources, methodological inconsistencies in payment accounting, discrepancies between regulatory and actual timelines of transactions, and the use of funds transferred to non-budget accounts in previous years. Together, these factors increase the risks of inefficient resource use and reduce transparency in recovery processes.
In 2024, the Fund confirmed its role as a key recovery instrument; however, its effectiveness remains constrained by managerial and procedural barriers. A high share of unallocated funds, weak absorption in several areas, and limited transparency of certain decisions indicate the need to improve budget planning, establish an integrated monitoring system, and introduce unified reporting standards. Independent analysis should serve as a tool for public oversight and international scrutiny, contributing to more transparent and effective use of financial resources for the country’s recovery.