Finland continued to support Ukraine through development assistance in 2023

The support for Ukraine following Russia’s invasion was clearly reflected in the 2023 official development assistance spending (ODA) of Finland and many other EU Member States, according to data released by the OECD today. Ukraine was the largest recipient of Finland’s ODA for the second consecutive year.

Today, the Organisation for Economic Co-operation and Development (OECD) released preliminary data on official development assistance (ODA) in 2023 by the 32 member countries of its Development Assistance Committee (DAC).

The preliminary data shows that Ukraine received by far the largest amount of assistance. DAC members used EUR 18.5 billion (USD 20.0 billion) in ODA to support Ukraine in 2023.

Finland’s ODA spending decreased

Finland’s official development assistance (ODA) in 2023 totalled EUR 1,452 million, showing a decline of EUR 84 million on 2022. This represented 0.52 per cent of Finland’s gross national income (GNI), according to the OECD’s preliminary data. In real terms, Finland’s ODA spending fell by 9.5 per cent.

Finland’s exclusive ODA, administered by the Ministry for Foreign Affairs, totalled EUR 750 million, while Finland’s other ODA totalled EUR 702 million. Other ODA include Finland’s share of the EU’s ODA budget, development policy loans and investments and a part of the costs generated by refugee reception.

The greatest reduction was seen in in-donor refugee costs counted as ODA. In 2023, the costs were EUR 231 million, showing a decline of EUR 159 million on 2022. A very significant part of the sum was still spent on addressing the temporary protection needs of Ukrainians in Finland. The overall change was balanced by development policy loans and investments, whose ODA-eligible share was EUR 108 million in 2023, showing a rise of EUR 58 million on the previous year.

UN is the main partner, Ukraine the largest recipient

A significant share of Finland’s ODA in 2023 was channelled through the UN (EUR 310 million), the EU (EUR 268 million) and the World Bank Group (EUR 156 million). An estimated EUR 370 million, representing 0.13 per cent of Finland’s GNI, was allocated to least developed countries (LDCs), including imputed shares of multilateral organisations. Preliminary data shows that a total of EUR 64 million was spent on supporting Ukraine (excluding in-donor refugee costs).

Last year, Finland granted EUR 125 million in humanitarian assistance as part of the official development assistance. Humanitarian assistance is a way of responding rapidly to sudden effects of natural disasters, armed conflicts and other crises when people's lives are in imminent danger.

ODA in other OECD and EU countries

Globally, official development assistance (ODA) amounted to USD 223.7 billion (EUR 206.9 billion) in 2023, rising by 1.8 per cent in real terms compared to the previous year. The largest donors were the United States, Germany, Japan, the United Kingdom and France. Among the members of the OECD Development Assistance Committee (DAC), Denmark, Germany, Luxembourg, Norway and Sweden exceeded the UN's ODA target of 0.7 per cent of GNI. Total ODA for all DAC member countries combined as a per cent of GNI stood at 0.37 per cent. 

Together, the EU and its Member States were the largest donor of ODA. The ODA expenditure of the EU Member States that are members of DAC totalled USD 85.9 billion (EUR 92.9 billion), representing 42 per cent of total ODA and 0.52 per cent of the combined GNI of the DAC-EU countries. The expenditure fell by 7.7 per cent in real terms compared to 2022.

14 member countries of the OECD Development Assistance Committee (DAC) increased their ODA expenditure, whereas in 17 DAC member countries ODA expenditure fell.

The final statistics for the year 2023 will be published at the end of 2024. The data will be updated as regards the regional breakdown of spending, among other data. Finland’s ODA to GNI ratio may change as well once Statistics Finland revises its GNI estimate.