World Bank Financial Intermediary Fund for Ukraine

In order to assist Ukraine in overcoming the difficulties posed by the continuing conflict with Russia, the World Bank established a special Financial Intermediary Fund (FIF). It is anticipated that nations like the US, Canada, and Japan would make financial contributions to this fund in order to support both military and humanitarian requirements.

Creation of the Fund and Implications for Ukraine

• US$ 50 billion pledged to Ukraine, as the World Bank's executive board have endorsed a fund paralleled on G7-commitment
• The fund will consist of funds from the USA, Canada and Japan as well as frozen Russian assets during the war.
• The European Union pledged €35 billion to assist with funding efforts made by G7 partners.
• The joint donation should ease some of the pressure on Ukraine's budget, which has an expected financial gap in the region of $80 billion to $90 billion.
• The fund was established in conversations between US President Joe Biden and German Chancellor Olaf Scholz over Ukraine.
• The World Bank is equipped to manage the fund in a pragmatic way (it has experience working with non-military donor funds).
• The fund aims to bring in countries outside Europe, hoping for worldwide assistance filling up resources for Ukraine amid the conflict.