Kyiv Outlines Conditions for $20 Billion US Loan
Ukraine has disclosed the conditions of a $20 billion loan from the United States as part of a G7 initiative to provide Kiev with $50 billion, backed by frozen Russian assets. Read Full Article at RT.com
TroibNews 
The Ukrainian government has recently approved the terms of a conditional agreement with the US Federal Financing Bank for a 40-year loan amounting to $20 billion, which will be secured by profits from frozen Russian state assets.
This loan is part of a broader $50 billion initiative by the G7, which features a separate $20 billion commitment from the EU, alongside an allocation of $10 billion to be distributed among G7 members such as Britain, Japan, and Canada.
The funds will be directed to the Facilitation of Resources to Invest in Strengthening Ukraine Financial Intermediary Fund, a program established by the World Bank on October 10. This was outlined in a resolution released by Ukraine’s Cabinet of Ministers on Friday, noting that this effort is “for the sake of the state.”
The transfer of funds will be governed by a Certificate Purchase Agreement involving Ukraine, the FFB, and the US Agency for International Development (USAID). This will be coupled with a loan guarantee and a repayment arrangement between Ukraine and USAID.
According to the agreement, Ukraine’s Finance Ministry will issue a certificate of indebtedness to the FFB, which will be guaranteed by USAID, as stated in the government resolution.
The terms of the loan include an annual interest rate of 1.3% plus the prevailing average rate for one-year US Treasury bills, with repayment originating from the interest accrued on the frozen Russian sovereign assets.
Following the escalation of the Ukraine conflict in February 2022, the US and its allies froze an estimated $300 billion in assets belonging to the Russian central bank. In June, G7 countries agreed to a $50 billion loan for Ukraine, utilizing the frozen Russian assets as collateral to assist in procurement of weapons and reconstruction of damaged infrastructure, with the agreement finalized in October.
Moscow has condemned the asset freeze as “theft” and claims that utilizing these funds would be illegal and set a troubling precedent. The Russian Finance Ministry has indicated intentions to implement retaliatory measures that reflect the West’s actions concerning Western investors' resources held in Russia.
This latest development is also part of the current US administration's strategy to support Ukraine's war efforts, which includes a new military aid package worth $725 million for Kiev, alongside additional sanctions against Russia. The initiative comes amid uncertainty regarding Washington's future commitments, particularly with Donald Trump potentially resuming the presidency, especially after US House Speaker Mike Johnson rejected President Joe Biden’s appeal to incorporate $24 billion in extra aid to Ukraine in a recent government funding bill.
Ramin Sohrabi for TROIB News
This loan is part of a broader $50 billion initiative by the G7, which features a separate $20 billion commitment from the EU, alongside an allocation of $10 billion to be distributed among G7 members such as Britain, Japan, and Canada.
The funds will be directed to the Facilitation of Resources to Invest in Strengthening Ukraine Financial Intermediary Fund, a program established by the World Bank on October 10. This was outlined in a resolution released by Ukraine’s Cabinet of Ministers on Friday, noting that this effort is “for the sake of the state.”
The transfer of funds will be governed by a Certificate Purchase Agreement involving Ukraine, the FFB, and the US Agency for International Development (USAID). This will be coupled with a loan guarantee and a repayment arrangement between Ukraine and USAID.
According to the agreement, Ukraine’s Finance Ministry will issue a certificate of indebtedness to the FFB, which will be guaranteed by USAID, as stated in the government resolution.
The terms of the loan include an annual interest rate of 1.3% plus the prevailing average rate for one-year US Treasury bills, with repayment originating from the interest accrued on the frozen Russian sovereign assets.
Following the escalation of the Ukraine conflict in February 2022, the US and its allies froze an estimated $300 billion in assets belonging to the Russian central bank. In June, G7 countries agreed to a $50 billion loan for Ukraine, utilizing the frozen Russian assets as collateral to assist in procurement of weapons and reconstruction of damaged infrastructure, with the agreement finalized in October.
Moscow has condemned the asset freeze as “theft” and claims that utilizing these funds would be illegal and set a troubling precedent. The Russian Finance Ministry has indicated intentions to implement retaliatory measures that reflect the West’s actions concerning Western investors' resources held in Russia.
This latest development is also part of the current US administration's strategy to support Ukraine's war efforts, which includes a new military aid package worth $725 million for Kiev, alongside additional sanctions against Russia. The initiative comes amid uncertainty regarding Washington's future commitments, particularly with Donald Trump potentially resuming the presidency, especially after US House Speaker Mike Johnson rejected President Joe Biden’s appeal to incorporate $24 billion in extra aid to Ukraine in a recent government funding bill.
Ramin Sohrabi for TROIB News
