Russia’s Invasion Of Ukraine: IMF, World Bank work on $3 billion aid package to Ukraine

The World Bank is working on a $3 billion package to aid Ukraine as it fights against a Russian invasion with the first $550 million to be approved soon.

In a joint statement with the International Monetary Fund, the World Bank said it is preparing the package of support for the coming months, with the a fast-disbursing budget of at least $350 million to be submitted this week followed by another $200 million to support health and education in the embattled country.

The package, it said, will mobilize financing from several partners while the IMF said its board could also approve the disbursement of funds through its Rapid Financing Instrument as early as next week as it seeks to answer Ukraine’s request for emergency financing.

“We are deeply shocked and saddened by the devastating human and economic toll brought by the war in Ukraine. People are being killed, injured and forced to flee and massive damage is caused to the country’s physical infrastructure,” IMF Managing Director Kristalina Georgieva and World Bank Group President David Malpass said.

“We stand with the Ukrainian people through these horrifying developments.”

They said their institutions are also working to assess the economic and financial fallout this conflict could cause, including that due to refugees fleeing to neighboring countries.

The week-long war has already created some 660,000 refugees, according to the United Nations High Commissioner for Refugees.

The U.N. agency said it estimates that 12 million people inside Ukraine will need relief and protection while 4 million Ukrainian refugees may need help in the coming months.

The fighting has already caused “significant spillovers” to other countries and have driven commodity prices higher at the risk of further fueling inflation, they said, adding that poor nations will be hit hardest by these effects.