World Bank approves creation of Financial Intermediary Fund to support Ukraine

The World Bank's executive board has approved the creation of a Financial Intermediary Fund (FIF) to support Ukraine. The first contributions to the fund are expected to be made by the United States, Canada and Japan.

Source: Reuters with reference to its sources, as reported by Voice of America

Details: According to two sources familiar with the process, the only objection to the vote came from Russia. 

The fund, managed by the World Bank, aims to fulfil the G7 leaders' commitment to providing Ukraine with up to US$50 billion in additional financing by the end 2024, as the country continues to defend itself against Russia's invasion, which began over two years ago.

According to one source, while the exact amounts from the US, Japan and Canada are still being determined, all contributions will be backed by income from frozen Russian sovereign assets.

The European Council’s statement said the World Bank vote came just a day after European Union representatives agreed to provide Ukraine with up to €35 billion (US$38.3 billion) as part of the larger G7 loan package, which is also supported by income from frozen assets of Russia’s Central Bank.

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