Ukraine, World Bank sign $15B agreement funded by US: Premier

Ukrainian Prime Minister Denys Shmyhal on Monday announced that Kyiv and the World Bank signed an agreement worth $15 billion, which will be funded by the US.

“The United States will provide Ukraine with $15 billion, secured by revenues from frozen Russian assets,” Shmyhal said in a statement on Telegram.

Shmyhal said the funding will be made under the World Bank's PEACE in Ukraine project, and is part of Washington's $20 billion contribution to Group of Seven's (G7) loan initiative for the country.

“We thank the United States and the World Bank for the implementation and support of the initiative, which forces Russia to pay for its aggression against Ukraine,” he said, adding that the funding will be directed to social and humanitarian spending.

A corresponding statement by Ukraine's Finance Ministry said the US direct budget support for Ukraine between 2022 and 2024 has exceeded $30 billion.

“This funding has helped the Ukrainian Government support critical employees across state institutions that deliver essential public services to the people of Ukraine, maintain the state's operational continuity, and ensure Ukraine's financial stability during the full-scale war,” the statement said.

Finance Minister Serhii Marchenko said Ukraine is entering the new year with confidence in its ability to “fully and promptly finance key social and humanitarian needs.”

Shmyhal announced last week that Kyiv had received $1 billion as the first installment from frozen Russian assets, under the G7 initiative.

He said it is part of a planned $20 billion allocation, of which $50 billion in total loans will be serviced using future revenues from Russia's frozen sovereign assets, in line with the G7's October agreement.

The US has pledged $20 billion, while the remaining $30 billion will be contributed by the G7 and the EU, he said.

Many Western nations froze assets of the Russian Central Bank on their territory after Moscow's 2022 war on Ukraine. The assets amount to about $300 billion.