World Bank allocates first tranche from fund backed by frozen Russian assets to Ukraine

The World Bank has approved the allocation of $2.05 billion to Ukraine for financial stability, reforms and investment promotion, including from the fund generated from profits on frozen Russian assets.

This is said in a press release published on the World Bank’s website on Wednesday, Ukrinform reports.

“The World Bank’s Board of Executive Directors approved a Development Policy Operation (DPO) for Ukraine to strengthen the economic policy framework for sustainable growth and improve financial stability,” the document says.

It is noted that the operation provides financing of $1.05 billion using IBRD resources credit-enhanced through the Advancing Needed Credit Enhancement (ADVANCE) Ukraine Trust Fund, supported by Japan and the United Kingdom. The operation is also co-financed by a $1 billion grant from the Facilitation of Resources to Invest in Strengthening Ukraine Financial Intermediary Fund (F.O.R.T.I.S. Ukraine FIF).

Read also: Ukraine receives EUR 4.1B under Ukraine Facility

The DPO aims to support the Government of Ukraine in implementing reforms that will strengthen the country’s economic potential and improve macro-financial stability. This initiative supports the authorities’ efforts to increase Ukraine’s Gross Domestic Product (GDP) per capita to converge with EU levels and strengthen the country’s economic self-reliance.

As reported by Ukrinform, on December 10, the U.S. Treasury announced a $20 billion loan to Ukraine as part of the G7 initiative worth $50 billion that implies the use of frozen Russian assets.

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