Ukraine starts receiving funds from frozen Russian assets – Shmyhal
Photo: Prime Minister of Ukraine Denys Shmyhal (kmu.gov.ua)
Ukraine has begun receiving its first funds from frozen Russian assets. The World Bank's Executive Board has approved $2 billion in funding through the Development Policy Loan (DPL) mechanism, Ukraine's Prime Minister Denys Shmyhal reports.
It was noted that Ukraine's Ministry of Finance signed the respective agreements with the World Bank today, December 20.
Details of the Funding:
- A $1 billion non-repayable grant provided through the World Bank's special FIF fund, supported by the US under the G7 initiative.
- A $1.05 billion loan secured by guarantees from the governments of Japan and the United Kingdom.
"Ukraine has fulfilled all necessary measures to receive these funds. We are grateful to our partners for their support on our path to economic development and recovery," Shmyhal emphasized.
Frozen Russian assets
Frozen Russian assets refer to financial and material resources blocked under international sanctions imposed after Russia's full-scale invasion of Ukraine in February 2022.
According to various estimates, the total amount of frozen Russian assets exceeds $300 billion. These funds include:
- Reserves of the Central Bank of Russia are held in foreign banks.
- Assets of Russian state-owned companies and private individuals close to the Kremlin.
Most of these assets belong to oligarchs and businessmen connected to the Russian government. These include properties, yachts, airplanes, bank accounts, and other valuables.
Earlier, the EU Commissioner for Economy, Valdis Dombrovskis, stated that the European Union should consider confiscating the Russian central bank's assets to compensate Ukraine.
Furthermore, as recently reported, the frozen Russian assets and EU funds could be combined. To find out how such a move will help restore Ukraine, read our material on the topic.
