World Bank Approves Fund to Support Ukraine

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.