Washington (AFP) – The United States announced Tuesday that it has disbursed a $20 billion loan for Ukraine backed by proceeds earned on frozen Russian assets, as part of a $50 billion G7 support package. The money forms a significant chunk of the $50 billion in new loans finalized by Group of Seven advanced economies in October, aimed at helping Kyiv as it struggles to fight back against Moscow’s ongoing invasion.
The funds come at a crucial juncture for Kyiv as questions swirl over the future of its US backing once President Joe Biden hands over power to Donald Trump in January. The incoming president has questioned the level of financial support given to Ukraine following Russia’s 2022 invasion, saying over the weekend he will “probably” reduce aid to Kyiv.
“These funds — paid for by the windfall proceeds earned from Russia’s own immobilized assets — will provide Ukraine a critical infusion of support as it defends its country against an unprovoked war of aggression,” US Treasury Secretary Janet Yellen said in a statement. The G7’s loans “will help ensure Ukraine has the resources it needs to sustain emergency services, hospitals and other foundations of its brave resistance,” Yellen added.
Ukrainian President Volodymyr Zelensky said Tuesday that he was “deeply grateful” for the disbursement, calling it “a powerful act of justice.” The support “will strengthen Ukraine’s defense and help protect our sovereignty and people against unprovoked aggression,” he added in a separate statement.
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The move follows long talks between the United States and its allies about the best way to tap frozen Russian assets to help Ukraine without breaking the law. “After Russia’s brutal invasion of Ukraine, the G7 made a commitment that Russian sovereign assets in our jurisdictions will remain immobilized until Russia ends its aggression and pays for the damages it has caused Ukraine,” White House Press Secretary Karine Jean-Pierre told reporters Tuesday. “The United States and G7 are now making good on that commitment,” she added.
The EU has been home to most of Moscow’s immobilized assets worldwide since it froze roughly $235 billion in funds from Russia’s central bank. Around 90 percent of this is held by the Belgium-based international deposit organization Euroclear. The Treasury said Washington had transferred $20 billion to the World Bank, which will make the money available to Ukraine through an existing fund.
The EU has already committed around $19 billion in loans backed by frozen Russian assets while the United Kingdom, Canada, and Japan have also said they will contribute. The $50 billion loan to Ukraine comes on top of other support from G7 countries since 2022. This includes almost $60 billion in military assistance from Washington and roughly 120 billion euros (approximately $127 billion) of support from the EU and its member states.
© 2024 AFP
