WASHINGTON, Dec 18 (Reuters) - The World Bank said on Wednesday its executive board approved $2.05 billion in Development Policy Operation funding for Ukraine that includes the first grant from a new $20 billion US loan fund for Kiev that is backed by income from frozen Russian sovereign assets.

The new package aimed at boosting Ukraine's financial and economic stability also includes World Bank financing of $1.05 billion that is enhanced with loan guarantees from a trust fund supported by Japan and Britain, the World Bank said in a statement.