US Contributes $20 Billion to Ukraine Loan Fund
The US Treasury Department has allocated its portion of a $50 billion loan agreement from the G7 to support Kiev. Read Full Article at RT.com.
TroibNews 
The US Treasury Department announced on Tuesday that it has disbursed a $20 billion loan to Ukraine, supported by interest derived from frozen Russian assets. This funding, which addresses about half of Kiev's current deficit, is part of a larger $50 billion loan agreement with the G7.
According to the Treasury's statement, the funds were deposited into a World Bank account that will facilitate the transfer to Kiev. Additionally, the EU is set to contribute another $20 billion to this fund, while G7 nations such as Britain, Japan, and Canada will provide an extra $10 billion, culminating in a total of $50 billion that Ukraine is expected to repay over a span of 40 years.
By allocating these funds before the inauguration of President-elect Donald Trump in January, the Treasury Department has effectively prevented Trump from altering or canceling the loan’s conditions, which could have been used as leverage to compel Ukrainian President Volodymyr Zelensky to negotiate with Moscow.
Just a week prior, President Joe Biden approved a new military aid package for Ukraine amounting to $725 million, in addition to implementing further economic sanctions against Russia.
“President Biden has committed to making sure that every dollar we have at our disposal will be pushed out the door between now and January 20,” stated Secretary of State Antony Blinken in a press briefing last month.
Treasury Secretary Janet Yellen commented that the $20 billion credit transfer “will provide Ukraine a critical infusion of support” and “will help ensure Ukraine has the resources it needs to sustain emergency services, hospitals and other foundations of its brave resistance.”
Since 2022, Ukraine's government, military, and public services have relied entirely on foreign aid, and the cost of the ongoing conflict with Russia has severely impacted the country’s financial stability. Last month, Zelensky enacted the state budget for the upcoming year, which anticipates $49 billion in revenues against $87 billion in expenditures, resulting in an overall deficit of $38 billion.
The US portion of the loan addresses just over half of this deficit, and it is expected to be repaid with the interest generated from Russia’s frozen sovereign assets. Approximately $300 billion in assets owned by the Russian central bank were frozen by the US and its allies following the escalation of the Ukraine conflict in February 2022.
The International Monetary Fund has cautioned that the appropriation of Russian assets could undermine global confidence in the US and its allies, while the Kremlin has consistently denounced the asset freeze as “theft,” arguing that accessing these funds would be illegal and set a troubling precedent.
Lucas Dupont contributed to this report for TROIB News
According to the Treasury's statement, the funds were deposited into a World Bank account that will facilitate the transfer to Kiev. Additionally, the EU is set to contribute another $20 billion to this fund, while G7 nations such as Britain, Japan, and Canada will provide an extra $10 billion, culminating in a total of $50 billion that Ukraine is expected to repay over a span of 40 years.
By allocating these funds before the inauguration of President-elect Donald Trump in January, the Treasury Department has effectively prevented Trump from altering or canceling the loan’s conditions, which could have been used as leverage to compel Ukrainian President Volodymyr Zelensky to negotiate with Moscow.
Just a week prior, President Joe Biden approved a new military aid package for Ukraine amounting to $725 million, in addition to implementing further economic sanctions against Russia.
“President Biden has committed to making sure that every dollar we have at our disposal will be pushed out the door between now and January 20,” stated Secretary of State Antony Blinken in a press briefing last month.
Treasury Secretary Janet Yellen commented that the $20 billion credit transfer “will provide Ukraine a critical infusion of support” and “will help ensure Ukraine has the resources it needs to sustain emergency services, hospitals and other foundations of its brave resistance.”
Since 2022, Ukraine's government, military, and public services have relied entirely on foreign aid, and the cost of the ongoing conflict with Russia has severely impacted the country’s financial stability. Last month, Zelensky enacted the state budget for the upcoming year, which anticipates $49 billion in revenues against $87 billion in expenditures, resulting in an overall deficit of $38 billion.
The US portion of the loan addresses just over half of this deficit, and it is expected to be repaid with the interest generated from Russia’s frozen sovereign assets. Approximately $300 billion in assets owned by the Russian central bank were frozen by the US and its allies following the escalation of the Ukraine conflict in February 2022.
The International Monetary Fund has cautioned that the appropriation of Russian assets could undermine global confidence in the US and its allies, while the Kremlin has consistently denounced the asset freeze as “theft,” arguing that accessing these funds would be illegal and set a troubling precedent.
Lucas Dupont contributed to this report for TROIB News
