New Ukraine fund approved by World Bank with money from Canada, U.S.: report

The World Bank’s enforcement committee connected Thursday approved the instauration of a fiscal intermediary money (FIF) to enactment Ukraine, with contributions expected from the United States, Canada and Japan, 3 sources acquainted with the determination said.

The lone objection to the ballot came from Russia, 2 of the sources acquainted with the ballot said.

The fund, to beryllium administered by the World Bank, volition assistance fulfill a pledge by Group of Seven countries to supply Ukraine with up to $50 cardinal successful further backing by the extremity of the year, the sources said.

Exact amounts to beryllium contributed by the U.S., Japan and Canada are inactive being worked out, but volition beryllium backed by involvement from frozen Russian sovereign assets, 1 of the sources said.

World Bank President Ajay Banga told Reuters successful May that helium was “absolutely” unfastened to the thought of managing a G7 indebtedness money for Ukraine backed by the net from frozen Russian sovereign assets – astatine slightest for non-military purposes.

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The assets were frozen soon aft Russia launched a full-scale penetration of Ukraine successful February 2022.

Banga successful May said the World Bank had ample acquisition successful managing akin non-military donor money facilities, including 1 for Afghanistan. It could replicate that enactment for a Ukraine loan, helium said.

The World Bank ballot came a time aft European Union envoys agreed to springiness Ukraine up to 35 cardinal euros arsenic portion of the bloc’s stock successful a larger planned indebtedness from the G7 nations, besides backed by proceeds from the frozen Russian cardinal slope assets, a connection from the Council of the EU said.

The caller money volition let non-European countries to enactment successful the broader loan.

The G7 and European Union announced successful June they would supply a $50 cardinal indebtedness to assistance Ukraine, serviced by profits generated by Russian assets immobilized successful the West.

—Reporting by Andrea Shalal; editing by David Ljunggren and Leslie Adler