Ukraine begins receiving first funds covered by frozen Russian assets proceeds

Ukraine is already receiving U.S. funds under the framework of the G7's $50 billion loan covered by profits from frozen Russian assets, Prime Minister Denys Shmyhal said on Dec 20.

The World Bank's Board of Directors on Dec. 18 approved $2.05 billion in Development Policy Operation (DPO) grants, which is part of the U.S.'s $20 billion contribution to the G7 loan.

The DPO funds are co-financed by two sources: $1 billion from the Facilitation of Resources to Invest in Strengthening Ukraine Financial Intermediary Fund (F.O.R.T.I.S. Ukraine FIF) and $1.05 billion from the Advancing Needed Credit Enhancement (ADVANCE) Ukraine Trust Fund, supported by the U.K. and Japan.

"We are grateful to our partners for their support on the path of economic development and reconstruction," Shmyhal said on Telegram.

The DPO funds will focus on Ukraine's growth potential, supporting the railway sector, banking, and renewable energy generation, the World Bank said. Funding will also support efforts to increase domestic revenues.

The EU said it would begin paying its portion of the G7 loan — 18.1 billion euros ($18.8 billion) — in January.

Ukraine’s tax hike, G7 loan enough for planned defense expenses in 2025, Finance Ministry says

For the next year, Ukraine allocated 26.3% of its gross domestic product (GDP) to defense and security expenditures, including Hr 740 billion ($17.7 billion) for arms purchases and Hr 50 billion ($1.2 billion) on the production and purchase of drones.

The Kyiv IndependentBoldizsar Gyori