New Ukrainian fund approved by the World Bank with money from Canada, US: report – National
The executive board of the World Bank on Thursday approved the creation of a financial intermediary fund (FIF) to support Ukraine, with expected contributions from the United States, Canada and Japan, said three sources with knowledge of the decision.
The only opposition to the vote came from Russia, two sources familiar with the vote said.
The fund, which will be managed by the World Bank, will help fulfill a Group of Seven pledge to provide Ukraine with up to $50 billion by the end of the year, sources said.
The exact amounts to be contributed by the US, Japan and Canada are still being worked out, but will be supported by interest from Russia’s frozen private assets, one of the sources said.
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World Bank President Ajay Banga told Reuters in May that he was “absolutely open” to the idea of running a G7 loan fund for Ukraine backed by proceeds from Russia’s frozen private assets — at least for non-military purposes.
The supplies were halted shortly after Russia launched a full-scale invasion of Ukraine in February 2022.
Banga said in May that the World Bank has enough experience in managing non-military mutual fund institutions, including the one in Afghanistan. It could duplicate that Ukrainian loan activity, he said.
The World Bank’s vote came a day after European Union delegates agreed to give Ukraine up to 35 million euros as part of the bloc’s share of a larger planned loan from G7 countries, backed by money from frozen Russian bank assets, the statement said. from the EU Council said.
The new fund will allow non-European countries to participate in broader lending.
The G7 and the European Union announced in June that they would provide a $50 billion loan to help Ukraine, financed by profits generated by Russian assets idled in the West.
–Reporting by Andrea Shalal; editing by David Ljunggren and Leslie Adler
