World Bank Boosts Ukraine's Economic Stability with Major Funding

The World Bank has approved a $2.05 billion Development Policy Operation for Ukraine, aiming to stabilize the country's economy and include policy reforms for sustainable growth. The package involves U.S. loan funds from frozen Russian assets and financing from Japan and Britain, amid ongoing geopolitical tensions.

The World Bank has announced a significant financial intervention for Ukraine, approving $2.05 billion in Development Policy Operation funding. This substantial package includes the first grant from a novel $20 billion U.S. loan fund, which is uniquely backed by income from Russian sovereign assets that have been frozen.

A key element of the package involves $1.05 billion in financing from the World Bank itself, bolstered by loan guarantees from a trust fund with support from Japan and Britain. This initiative is part of a broader $50 billion financing plan for Ukraine, leveraging assets frozen after Russia's 2022 invasion.

The reform-centric funding seeks to support Ukraine's Finance Ministry with budget support, policy reforms, and structural adjustments aimed at economic sustainability. Key areas include enhancing competition in the railway sector and promoting renewable energy, to ultimately aid Ukraine in its aspirations to join the European Union.

(With inputs from agencies.)