World Bank Approves Fund to Support Ukraine

• 11 Oct 2024

In October 2024, the World Bank's executive board approved a new financial intermediary fund (FIF) to provide financial support to Ukraine, with contributions expected from the US, Canada, and Japan.

Key Points

• World Bank's FIF Initiative: The FIF, managed by the World Bank, aims to fulfill a G7 pledge to provide Ukraine with up to $50 billion in financial assistance by the end of 2023.
• Contributions from the US, Japan, and Canada are still being negotiated, supported by interest accrued from frozen Russian assets.
• Ukraine’s Financial Needs: With Ukraine’s war-related expenditures estimated between $80 billion and $90 billion, this fund is seen as a game-changer.
• European Union’s Support: The fund closely follows the European Union’s approval to provide Ukraine with up to €35 billion ($38.3 billion), part of the G7 loan, serviced by proceeds from frozen Russian central bank assets.
• International Contributions and Cooperation; Non-European countries can now contribute to the broader loan effort, enhancing global support for Ukraine.
• A large portion of frozen Russian assets, around €210 billion, remains immobilized in the EU, most of which is held in Belgium’s Euroclear depository.