US finalizes $20 billion share of $50 billion G7 loan to Ukraine
The United States has officially finalized its $20 billion commitment to a $50 billion loan for Ukraine, an initiative aimed at bolstering the country’s economic and military resources amid ongoing conflict with Russia. The agreement, signed by U.S. Treasury Secretary Janet Yellen and Ukrainian Finance Minister Serhiy Marchenko, is expected to make funds available by the end of the year.
This U.S. loan is part of a larger financial package that includes an additional $20 billion commitment from the European Union and $10 billion to be shared among G7 allies, including Britain, Japan, and Canada. The funding will be repaid using earnings from over $300 billion in Russian assets that have been frozen since the invasion of Ukraine in February 2022.
President Joe Biden emphasized the significance of this arrangement, stating, “In other words, Ukraine can receive the assistance it needs now, without burdening taxpayers.” The Biden administration aims to allocate $10 billion of the loan for military aid, which will require Congressional approval. The remaining $10 billion will be available for non-military support without such approval, according to National Security Council officials.
Funds designated for economic assistance will be administered by the World Bank Trust Fund, which has previously managed similar contributions for international initiatives. The financial structure aims to ensure that the U.S. and its allies can deliver timely support to Ukraine while utilizing the immobilized Russian assets.
Ukrainian President Volodymyr Zelenskiy expressed gratitude toward U.S. leadership, calling the loan a “significant step towards supporting Ukraine’s fight for freedom and holding Russia accountable.”
In response, the Russian embassy in Washington condemned the agreement, labeling it as “theft at a state level.” A statement issued on Telegram criticized the arrangement, asserting that it exemplifies state-sanctioned theft rather than legitimate financial assistance.
Treasury Secretary Yellen expressed confidence that the frozen assets would remain secure, indicating a belief in the stability of the loan arrangement. An NSC official noted that the EU’s commitment to Ukraine creates incentives to keep the Russian assets immobilized until full repayment is achieved. This sentiment was echoed by European lawmakers, who have approved plans to utilize the frozen assets as part of the loan strategy.
As the geopolitical landscape continues to evolve, this financial commitment underscores the U.S. and its allies’ ongoing support for Ukraine in its struggle against Russian aggression.
