World Bank halts all its programs in Russia and Belarus with 'immediate effect'

In the wake of the Russian invasion of Ukraine and “hostilities against the people of Ukraine”, the World Bank on Wednesday announced that it has halted its programs in Russia and Belarus. The multilateral development bank is the latest organisation to cut ties with Moscow as Russian forces continue to barrel down on Ukrainians. In a statement, the World Bank said that the move is effective immediately, further informing that the organisation has not approved any new loans to or investments in Russia since 2014 - the year Russia annexed the Crimea region of Ukraine. 

“The World Bank Group has not approved any new loans to or investments in Russia since 2014. There has also been no new lending approved to Belarus since mid-2020,” the statement read.

“Following the Russian invasion of Ukraine and hostilities against the people of Ukraine, the World Bank Group has stopped all its programs in Russia and Belarus with immediate effect,” it added. 

Separately, on Tuesday, the International Monetary Fund (IMF) managing director Kristalina Georgieva and World Bank Group president David Malpass said that they are “deeply shocked and saddened” by the devastating human and economic toll brought by the war in Ukraine. The statement said that the two institutions - IMF and World Bank - are working together to support Ukraine on the financing and policy fronts and are urgently increasing that support. They are also working together to assess the economic and financial impact of the conflict and refugees on the other countries in the region and the world.

“Coordinated international action will be crucial to mitigate risks and navigate the treacherous period ahead. This crisis affects the lives and livelihoods of people around the world, and we offer them our full support,” the statement read. 

World Bank announces 'fast-disbursing budget support operation' for Ukraine 

It is worth mentioning that according to the press release, the World Bank is now preparing a $3 billion package of support in the coming months. A “fast-disbursing budget support operation” of $350 million disbursements to Ukraine will be submitted to its board this week. This will be followed by $200 million in fast-disbursing support for health and education. The organisation said that this package will include the mobilisation of financing from several development partners.

Meanwhile, the decision to halt all programs in Russia and Belarus comes after the European Union, the US, Britain and others hit Russia with a wide range of sanctions after its invasion of Ukraine. Several countries have also imposed asset freezes, travel bans and other restrictions on numerous Russian individuals including President Vladimir Putin himself. Russia, on the other hand, has called its actions in Ukraine a “special operation”. 

(Image: AP)