The International Finance Corporation (IFC), the investment division of the World Bank, expects to finance projects in Ukraine with $1.9 billion over the next 18 months, a spokesperson for the organization told Reuters on Monday.
More than half of this amount is expected to come from IFC’s own accounts, with the remainder coming from partners such as Western governments and the European Commission, said Lisa Kaestner, IFC’s regional director for Ukraine. She added that some of the funds will be in the form of grants, but money will also be provided in the form of guarantees, allowing IFC to adjust its investment focus.
“It will allow us to start looking at longer-term investments that are more focused on capital expenditures, so with higher risks, because these are assets that, unfortunately, could be harmed as the conflict continues,” Kaestner said in an interview on the sidelines of the International Monetary Fund and World Bank spring meetings taking place in Washington.
The next round of projects to receive funding from IFC is expected to include initiatives such as river transportation on the Danube or electricity production from photovoltaic and wind sources.
Since the start of the Russian invasion of Ukraine in February 2022, IFC has financed projects in the country totaling $1.1 billion.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Operating in over 100 countries, in fiscal year 2023, it committed a record $43.7 billion to support private companies and financial institutions in developing countries.
