Ukraine asks Israel for a 500 million dollar loan

The request came in an official letter sent by the Ukrainian Ambassador to Israel Yevgen Kornichuk to Prime Minister Naftali Bennett's office in Jerusalem.

 Ukraine’s Ambassador to Israel Yevgen Korniychuk. (photo credit: AVSHALOM SASSONI/MAARIV)
Ukraine’s Ambassador to Israel Yevgen Korniychuk.
(photo credit: AVSHALOM SASSONI/MAARIV)

The Ukrainian government has submitted an official request to the Israeli government, asking to secure a loan on preferential terms of $500 million. This is in order to help its badly damaged economy survive the war with Russia.

The request came in an official letter sent by the Ukrainian Ambassador to Israel Yevgen Korniychuk to Prime Minister Naftali Bennett's office in Jerusalem, on behalf of Ukrainian Prime Minister Dennis Shmihel.

Korniychuk confirmed in a conversation with Yedioth Ahronoth that he submitted the request, saying that "This is not a large sum for the State of Israel. I hope that Prime Minister Naftali Bennett will consider it positively."

"This is not a large sum for the State of Israel. I hope that Prime Minister Naftali Bennett will consider it positively."

Yevgen Korniychuk

The Prime Minister's Office confirmed a letter was received from the Ambassador of Ukraine. The ambassador was notified and told that a reply would be given after the matter had been examined.

Global aid

Israel is not the only country to which the Ukrainians have turned for financial assistance, Japan provided Ukraine with a $ 600 million loan, Germany provided € 300 million and Canada provided $ 800 million.

Canada and Germany have already pledged over $2 billion to a new administered account set up by the International Monetary Fund to help war-torn Ukraine, and other countries have expressed interest, IMF spokesperson Gerry Rice said on Thursday.

Rice declined to estimate the total amount that could be raised in the account but said the IMF would like it to be "as large as possible," given Ukraine's huge needs as it defends against Russia's invasion.

Rice said the IMF had not been able to make an accurate or comprehensive assessment of damage from the war but said the Kyiv School of Economics estimated in late May that the physical infrastructure damage already exceeded $105 billion.

The sum would be "much higher" if it factored in economic losses from the reduced output, business closures, and foregone revenues and investment, Rice said.

The IMF March approved $1.4 billion in emergency support to help Ukraine finance its expenditure and shore up the balance of payments.

Reuters contributed to this report.