Ukraine began receiving the first money from the United States at the expense of frozen Russian assets.
This was reported by Prime Minister Denys Shmyhal and the press service of the Ministry of Finance.
The World Bank will provide $2 billion through the DPL (Development Policy Loan) mechanism. The Bankʼs Executive Board approved the allocation of funds the day before, and today, December 20, the Ministry of Finance of Ukraine signed agreements with the World Bank.
"Thanks to the DPL project, we are able not only to attract the necessary resources to support the state budget, but also to stimulate the recovery and development of the economy," explained Finance Minister Serhiy Marchenko.
The $1 billion grant agreement from the United States is the first tranche of the World Bank’s Fund for Mobilizing Resources for Investment in Strengthening Financial Intermediation in Ukraine (FORTIS Ukraine FIF). The program is funded under the $50 billion G7 ERA Mechanism initiative. The US contribution is $20 billion.
The Ministry of Finance of Ukraine also signed a loan agreement for $1.05 billion under guarantees from Japan and the United Kingdom.
Frozen Russian assets
The value of frozen Russian sovereign assets in the EU is almost €211 billion. In total, the European Union, the G7 countries and Australia have frozen approximately €260 billion in securities and cash.
On October 23, the EU Council finally approved a loan of up to €35 billion to Ukraine. The money is the blocʼs contribution to the G7 initiative to provide Ukraine with a $50 billion (€45 billion) loan, which will be repaid with the proceeds from frozen Russian assets.
And on October 26, the G7 countries agreed on a $50 billion loan for Ukraine using the proceeds from Russiaʼs frozen assets.
The money will be transferred “through various channels” — both to replenish the Ukrainian budget, and for military assistance and the restoration of Ukraine’s infrastructure. Reuters notes that Ukraine will receive all the funds under the loan by the end of 2027.
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