World Bank Approves Fund to Propel Ukraine's Financial Support

The World Bank's executive board has approved a financial intermediary fund to aid Ukraine, with contributions expected from the US, Canada, and Japan. Russia objected. The fund, backed by Russian frozen assets, aligns with G7's pledge to provide $50 billion by year-end.

The World Bank's executive board has given the green light to a new financial intermediary fund aimed at supporting Ukraine. Approved on Thursday, this fund is expected to see contributions from the United States, Canada, and Japan, according to multiple sources with insight into the decision.

The sole objection in the vote came from Russia, with insiders reporting that the fund will play a critical role in fulfilling the Group of Seven's commitment to deliver up to $50 billion in additional aid to Ukraine by the year's end. Contribution specifics for the involved countries are still under discussion.

Notably, the fund will be underpinned by interest derived from Russian sovereign assets that have been frozen. This move comes as World Bank President Ajay Banga confirmed to Reuters in May the bank's willingness to manage such funds, having experience from similar past endeavors.

(With inputs from agencies.)