The World Bank's executive board on October 10 approved the creation of a financial intermediary fund (FIF) to support Ukraine, with contributions expected from the United States, Canada and Japan, three sources familiar with the decision said, Report informs via Reuters.
The only objection to the vote came from Russia, two of the sources familiar with the vote said.
The fund, to be administered by the World Bank, will help fulfill a pledge by Group of Seven rich democracies to provide Ukraine with up to $50 billion in additional funding by the end of the year as it continues to battle Russia's invasion over two years ago, the sources said.
Exact amounts to be contributed by the US, Japan and Canada are still being worked out, but will be backed by interest from frozen Russian sovereign assets, one of the sources said.
The World Bank vote came a day after European Union envoys agreed to give Ukraine up to 35 billion euros ($38.3 billion) as part of the bloc's share in a larger planned loan from the G7 nations, also backed by proceeds from the frozen Russian central bank assets, a statement from the Council of the EU said.
Josh Lipsky, senior director of the Atlantic Council's GeoEconomics Center, said the two actions would allow G7 countries to provide a significant funding boost to Ukraine, and make good on promises made at a G7 leaders summit in June.
"This is a game-changing amount of money," he said, noting that Ukraine's spending on the war in 2023 was around $80 billion to $90 billion. "It's real resources on the ground that can make a difference."The US Treasury Department and White House declined to comment. No comment was immediately available from Japan or Canada.