Biden Plans to Forgive Billions in Ukrainian Debt
Outgoing US President Joe Biden has opted to cancel $4.7 billion in loans to Ukraine prior to the inauguration of President-elect Donald Trump. Read Full Article at RT.com.
TroibNews 
US President-elect Donald Trump has previously insisted that support for Ukraine should only come in the form of loans instead of gifts.
Outgoing US President Joe Biden has chosen to cancel approximately $4.7 billion in loans funded by taxpayers to Ukraine as part of an initiative to strengthen Kiev ahead of Trump’s inauguration next year.
Since the onset of the conflict with Russia in February 2022, the US Congress has allocated over $174 billion in aid packages to assist Ukraine. The most recent package, approved in April, included more than $9.4 billion designated as “forgivable loans” to help address budget shortfalls in Kiev.
“We have taken the step that was outlined in the law to cancel those loans,” State Department spokesperson Matthew Miller confirmed on Wednesday, indicating that Biden aims to forgive half of that amount, approximately $4.7 billion.
According to a letter from the State Department to Congress dated November 18, the decision to cancel the debt is in the “national interest of the United States and its EU, G7+, and NATO partners,” as reported by Bloomberg.
During his campaign, President-elect Donald Trump expressed that he wouldn’t oppose further aid to Ukraine as long as it was provided as loans rather than gifts funded by taxpayers.
Reclassifying a portion of the aid as loans was a significant factor in facilitating the $61 billion package approved in April, following a prolonged standoff between Republicans and the White House.
Senator Rand Paul has committed to obstructing the cancellation of the debt, claiming it unfairly burdens American taxpayers.
“Tonight, I’m forcing a vote on my resolution to prevent Biden from turning Ukraine’s debt into America’s problem. His proposal places the burden of funding Ukraine’s businesses, farmers, and corrupt bureaucrats on the shoulders of hardworking Americans,” Paul declared in a statement on X on Wednesday.
The Ukrainian government heavily depends on external assistance to sustain its economy. In September, Kiev outlined its draft budget for 2025, forecasting a deficit of 75% and estimating a need for $12 billion to $15 billion to bridge the gap.
As of July, Ukraine’s public debt surpassed $152 billion, according to the Finance Ministry. The expense of servicing these loans has escalated from $900 million to $5.2 billion this year, as indicated by calculations from the Russian newspaper Vedomosti based on Kiev’s financial data.
In October, G7 countries finalized a distinct $50 billion loan for Ukraine, supported by the profits from around $300 billion in Russian assets currently frozen in the West. Despite US calls for the complete confiscation of these assets, the International Monetary Fund has so far resisted this approach, citing concerns over the potential erosion of trust in the Western financial system.
Moscow has condemned the asset freeze as “theft” and cautioned that utilizing these funds would be illegal and set a troublesome precedent. Russian Finance Minister Anton Siluanov announced on Wednesday that retaliatory measures mirroring the West’s actions would be forthcoming.
“If Western countries have decided to use our assets and income from our assets, the Russian side will also implement appropriate actions," the finance minister stated.
Sanya Singh for TROIB News
Outgoing US President Joe Biden has chosen to cancel approximately $4.7 billion in loans funded by taxpayers to Ukraine as part of an initiative to strengthen Kiev ahead of Trump’s inauguration next year.
Since the onset of the conflict with Russia in February 2022, the US Congress has allocated over $174 billion in aid packages to assist Ukraine. The most recent package, approved in April, included more than $9.4 billion designated as “forgivable loans” to help address budget shortfalls in Kiev.
“We have taken the step that was outlined in the law to cancel those loans,” State Department spokesperson Matthew Miller confirmed on Wednesday, indicating that Biden aims to forgive half of that amount, approximately $4.7 billion.
According to a letter from the State Department to Congress dated November 18, the decision to cancel the debt is in the “national interest of the United States and its EU, G7+, and NATO partners,” as reported by Bloomberg.
During his campaign, President-elect Donald Trump expressed that he wouldn’t oppose further aid to Ukraine as long as it was provided as loans rather than gifts funded by taxpayers.
Reclassifying a portion of the aid as loans was a significant factor in facilitating the $61 billion package approved in April, following a prolonged standoff between Republicans and the White House.
Senator Rand Paul has committed to obstructing the cancellation of the debt, claiming it unfairly burdens American taxpayers.
“Tonight, I’m forcing a vote on my resolution to prevent Biden from turning Ukraine’s debt into America’s problem. His proposal places the burden of funding Ukraine’s businesses, farmers, and corrupt bureaucrats on the shoulders of hardworking Americans,” Paul declared in a statement on X on Wednesday.
The Ukrainian government heavily depends on external assistance to sustain its economy. In September, Kiev outlined its draft budget for 2025, forecasting a deficit of 75% and estimating a need for $12 billion to $15 billion to bridge the gap.
As of July, Ukraine’s public debt surpassed $152 billion, according to the Finance Ministry. The expense of servicing these loans has escalated from $900 million to $5.2 billion this year, as indicated by calculations from the Russian newspaper Vedomosti based on Kiev’s financial data.
In October, G7 countries finalized a distinct $50 billion loan for Ukraine, supported by the profits from around $300 billion in Russian assets currently frozen in the West. Despite US calls for the complete confiscation of these assets, the International Monetary Fund has so far resisted this approach, citing concerns over the potential erosion of trust in the Western financial system.
Moscow has condemned the asset freeze as “theft” and cautioned that utilizing these funds would be illegal and set a troublesome precedent. Russian Finance Minister Anton Siluanov announced on Wednesday that retaliatory measures mirroring the West’s actions would be forthcoming.
“If Western countries have decided to use our assets and income from our assets, the Russian side will also implement appropriate actions," the finance minister stated.
Sanya Singh for TROIB News
