The World Bank’s board of directors on Thursday approved the creation of a financial intermediary fund (FIF) to support Ukraine, with contributions expected from the United States, Canada and Japan, three sources close to the said. case.
The only objection to the vote came from Russia, two sources familiar with the vote said.
The funds, which will be managed by the World Bank, will help fulfill the Group of Seven countries’ commitment to provide Ukraine with up to $50 billion in additional financing by the end of this year, they said. indicated the sources.
The exact amount of the contribution from the United States, Japan and Canada is still being calculated, but it will be supported by interest on frozen Russian state assets, one of the sources said.
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World Bank President Ajay Banga told Reuters in May he was “absolutely” open to the idea of running a G7 loan fund for Ukraine, backed by revenue from state assets Russian frozen – at least for non-military purposes.
These assets were frozen shortly after Russia launched a major invasion of Ukraine in February 2022.
Banga said in May that the World Bank had extensive experience managing similar financing mechanisms from non-military donors, including one for Afghanistan. This could be modeled after similar efforts for Ukrainian loans, he said.
The World Bank vote came a day after European Union envoys agreed to give Ukraine up to 35 billion euros as part of the bloc’s share of a loan plan largest of the G7 countries, also supported by the proceeds of the frozen assets of the Russian central bank, according to a press release. . of the Council of the European Union declared.
The new fund will allow non-European countries to participate in broader loans.
The G7 and the European Union announced in June that they would provide a $50 billion loan to help Ukraine, sourced from profits generated by Russia’s immobile assets in the West.
—Reporting by Andrea Shalal; edited by David Ljunggren and Leslie Adler
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