World Bank approves creation of financial intermediary fund to support Ukraine - media

The World Bank's executive board on Thursday approved the creation of a financial intermediary fund (FIF) to support Ukraine.

That is according to Reuters, Ukrinform reports.

The United States, Canada and Japan are expected to make contributions to the fund to support Ukraine, sources familiar with the decision said. They informed that the only objection to the vote came from Russia.

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.

It is noted that the exact amounts to be contributed by the U.S., Japan and Canada are still being worked out, but will be backed by interest from frozen Russian sovereign assets.

The World Bank vote came a day after the European Union agreed to give Ukraine up to 35 billion euros ($38.3 billion) in macro-financial assistance.

As reported by Ukrinform, the European Council on October 9 reached an agreement on a financial assistance package to Ukraine, including an exceptional macro-financial assistance (MFA) loan of up to 35 billion euros and a loan cooperation mechanism that will support Ukraine in repaying loans for up to 45 billion euros provided by the EU and G7 partners.