Biden Seeks to Cancel Ukraine's Debts
Outgoing US President Joe Biden has chosen to forgive $4.7 billion in loans to Ukraine ahead of President-elect Donald Trump's inauguration. Read Full Article at RT.com
TroibNews 
**Outgoing US President Joe Biden is Set to Write Off $4.7 Billion in Loans to Ukraine**
Outgoing US President Joe Biden is moving forward with plans to forgive roughly $4.7 billion in taxpayer-funded loans to Ukraine as part of a strategy to strengthen support for Kiev ahead of President-elect Donald Trump's assumption of office next year.
Since the onset of the conflict with Russia in February 2022, US Congress has approved over $174 billion in diverse aid packages to assist Ukraine. The most recent package, authorized in April, encompassed more than $9.4 billion in “forgivable loans” aimed at addressing budgetary 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, noting Biden’s intent to write off half of the committed loan amount.
According to a letter from the State Department to Congress dated November 18 and reported by Bloomberg, canceling the debt aligns with the “national interest of the United States and its EU, G7+, and NATO partners.”
Meanwhile, President-elect Donald Trump, during his campaign, made it clear that he would not object to Congress’s approval of additional aid for Ukraine, provided it was distributed as loans rather than taxpayer-funded gifts. This reclassification of certain aid funds into loans played a significant role in facilitating the passage of the $61 billion package in April after lengthy negotiations between the White House and Republican lawmakers.
Senator Rand Paul has expressed his intention to block the cancellation of the debt, arguing that it unfairly burdens American taxpayers. In a statement on X Wednesday, he said, “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.”
The Ukrainian government remains heavily dependent on Western assistance to sustain its fragile economy. In September, Kiev presented its draft budget for 2025, forecasting a staggering deficit of 75% and estimating a need for $12 billion to $15 billion to bridge the gap.
By July, Ukraine’s public debt had surpassed $152 billion, as reported by the Ukrainian Finance Ministry. The expenses associated with servicing this debt have escalated from $900 million to $5.2 billion this year, according to calculations by the Russian newspaper Vedomosti, based on Kiev’s financial data.
In October, G7 countries concluded a substantial $50 billion loan agreement for Ukraine, which is supported by the profits from approximately $300 billion in frozen Russian assets currently immobilized in the West. Although the US has urged for the complete confiscation of these assets, the International Monetary Fund has resisted this move due to concerns over trust in the Western financial system.
Moscow has condemned the asset freeze as “theft” and cautioned that accessing these funds would be unlawful and could set a precarious precedent. Russian Finance Minister Anton Siluanov made assurances on Wednesday regarding retaliatory actions in response to the West’s measures. “If Western countries have decided to use our assets and income from our assets, the Russian side will also implement appropriate actions,” he stated.
Sanya Singh for TROIB News
Outgoing US President Joe Biden is moving forward with plans to forgive roughly $4.7 billion in taxpayer-funded loans to Ukraine as part of a strategy to strengthen support for Kiev ahead of President-elect Donald Trump's assumption of office next year.
Since the onset of the conflict with Russia in February 2022, US Congress has approved over $174 billion in diverse aid packages to assist Ukraine. The most recent package, authorized in April, encompassed more than $9.4 billion in “forgivable loans” aimed at addressing budgetary 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, noting Biden’s intent to write off half of the committed loan amount.
According to a letter from the State Department to Congress dated November 18 and reported by Bloomberg, canceling the debt aligns with the “national interest of the United States and its EU, G7+, and NATO partners.”
Meanwhile, President-elect Donald Trump, during his campaign, made it clear that he would not object to Congress’s approval of additional aid for Ukraine, provided it was distributed as loans rather than taxpayer-funded gifts. This reclassification of certain aid funds into loans played a significant role in facilitating the passage of the $61 billion package in April after lengthy negotiations between the White House and Republican lawmakers.
Senator Rand Paul has expressed his intention to block the cancellation of the debt, arguing that it unfairly burdens American taxpayers. In a statement on X Wednesday, he said, “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.”
The Ukrainian government remains heavily dependent on Western assistance to sustain its fragile economy. In September, Kiev presented its draft budget for 2025, forecasting a staggering deficit of 75% and estimating a need for $12 billion to $15 billion to bridge the gap.
By July, Ukraine’s public debt had surpassed $152 billion, as reported by the Ukrainian Finance Ministry. The expenses associated with servicing this debt have escalated from $900 million to $5.2 billion this year, according to calculations by the Russian newspaper Vedomosti, based on Kiev’s financial data.
In October, G7 countries concluded a substantial $50 billion loan agreement for Ukraine, which is supported by the profits from approximately $300 billion in frozen Russian assets currently immobilized in the West. Although the US has urged for the complete confiscation of these assets, the International Monetary Fund has resisted this move due to concerns over trust in the Western financial system.
Moscow has condemned the asset freeze as “theft” and cautioned that accessing these funds would be unlawful and could set a precarious precedent. Russian Finance Minister Anton Siluanov made assurances on Wednesday regarding retaliatory actions in response to the West’s measures. “If Western countries have decided to use our assets and income from our assets, the Russian side will also implement appropriate actions,” he stated.
Sanya Singh for TROIB News
