IMF and World Bank announces billions in Ukraine support

Rescue package will see initial hundreds of millions paid out within days.

World Bank president David Malpass. Picture: Ashraf Shazly/AFP

The World Bank and the International Monetary Fund have announced plans for a multibillion-dollar financial rescue package for Ukraine, including hundreds of millions in support to be paid out over coming days.

In a joint statement from the heads of both international organisations, the World Bank said it was preparing a $US3bn package of support in the coming months, “starting with a fast-disbursing budget support operation for at least $350m that will be submitted to the board for approval this week, followed by $200m in fast-disbursing support for health and education”.

As Russia intensified its unprovoked assault on its neighbour, the IMF said it had also responded to Ukraine’s request for emergency funding via an additional $US2.2bn available between now and June through Ukraine’s “Standby Arrangement” program.

IMF managing director Kristalina Georgieva and World Bank president David Malpass expressed solidarity with Ukrainians.

“We are deeply shocked and saddened by the devastating human and economic toll brought by the war in Ukraine,” they said in a statement.

“People are being killed, injured, and forced to flee, and massive damage is caused to the country’s physical infrastructure. We stand with the Ukrainian people through these horrifying developments.”

They also warned that as a result of the war “commodity prices are being driven higher and risk further fuelling inflation, which hits the poor the hardest”.

Brent crude oil – the international benchmark price – was trading just shy of $US110 a barrel late Wednesday, up nearly $US20 over the past two weeks. Ukraine and Russia account for more than a quarter of global wheat trade, and nearly a fifth of international corn supplies, and the conflict has sent food prices soaring from Indonesia to Egypt.

Australia is committed to providing $70m in lethal military assistance to Ukraine, and an initial $35m in humanitarian assistance.

Ms Georgieva and Mr Malpass said “disruptions in financial markets will continue to worsen should the conflict persist”.

“The sanctions announced over the last few days will also have a significant economic impact. We are assessing the situation,” they said.