World Bank Greenlights New Fund to Support Ukraine Amid Russian Tensions

The World Bank has approved a financial intermediary fund to support Ukraine amid the ongoing Russian invasion. Backed by the US, Canada, and Japan, the fund forms part of a G7 commitment to financial aid, leveraging proceeds from frozen Russian assets to bolster Ukraine's economy and infrastructure.

The World Bank's executive board has sanctioned the establishment of a financial intermediary fund (FIF) aimed at bolstering support for Ukraine amid its ongoing conflict with Russia. This development, approved on Thursday, taps into contributions from global powers such as the United States, Canada, and Japan, according to sources privy to the decision. Russia stood alone in objecting to the vote.

This fund, under the auspices of the World Bank, is designed to fulfill a Group of Seven (G7) pledge providing Ukraine with up to $50 billion by year-end. This financial assistance promises to support Ukraine's enduring battle against Russian aggression since the conflict erupted over two years ago. Contributions from the US, Japan, and Canada are expected, albeit precise figures are still under negotiation, underpinned by proceeds from frozen Russian sovereign assets.

Additionally, the European Union has agreed to a 35 billion euro package as part of a broader G7 loan, drawing on immobilized Russian central bank assets. Senior figures, such as Josh Lipsky of the Atlantic Council, praised these measures as pivotal in honoring commitments made during June's G7 summit, emphasizing the consequential impact on Ukraine's war-time expenditures, estimated between $80 billion to $90 billion for 2023 alone.

(With inputs from agencies.)