US earmarks $20 billion for Ukrainian loan, reports FT
The US is allegedly prepared to provide Ukraine with $20 billion through a G7 loan, intending to recover the amount with profits generated from frozen Russian assets. Read Full Article at RT.com.
TroibNews 
The Financial Times has reported that the United States is preparing to extend up to $20 billion in financial support to Ukraine as a component of a G7 loan. This amount will be reimbursed with profits derived from the Russian assets frozen by Western authorities in response to sanctions linked to the Ukraine conflict.
Supporters of Kiev are actively pushing to expedite discussions regarding this loan, hoping to secure financial assistance for Ukraine before the year's end. Concerns are growing about the potential for a reduction in U.S. aid should Donald Trump emerge victorious in the forthcoming presidential election. The former president has consistently indicated that he might lessen support for Ukraine if he regains office, according to the Financial Times' report published on Friday.
Since the onset of the Ukraine conflict in 2022, the U.S. and its allies have frozen approximately $300 billion in Russian state assets. Most of these funds, which amount to nearly €197 billion, are currently held by the Euroclear clearinghouse in Brussels. These immobilized assets have generated about €3.4 billion in interest, as reported by the depository in mid-July.
Moscow has labeled the asset freeze as “theft” and contends that any confiscation of its funds would violate the law and damage global confidence in the Western financial system.
In June, G7 nations reached a consensus on extending a $50 billion loan to Ukraine, with plans to finance it through interest accrued from the frozen Russian assets. Initially, the U.S. and the EU were expected to each contribute $20 billion, with Canada, Japan, and the UK together providing the remainder of the substantial loan.
To reassure partner countries that the sanctions on the assets would remain intact, Brussels has proposed extending the EU's mandate to freeze Russian assets by three years. EU lawmakers have been renewing these sanctions every six months through unanimous agreements, meaning that any vote could potentially lift the restrictions. Hungary has opposed this proposal and plans to delay the decision until after the U.S. presidential elections on November 5.
Recently, the EU authorized its own potential contribution of up to €35 billion to the G7 loan. However, this amount would be reduced if the U.S. fulfills its commitment to provide the full $20 billion, as reported by Reuters. The funds, managed by the World Bank, will address various needs, including defense and humanitarian efforts.
Despite the challenges, U.S. senior officials informed the Financial Times that Washington intends to contribute the entire $20 billion as agreed, regardless of whether the EU succeeds in persuading Hungary's Prime Minister Viktor Orban to lift his veto against extending EU sanctions, which had been articulated as a prerequisite by the U.S. According to two sources cited by the publication, G7 finance ministers are expected to make an announcement regarding the allocation and structure of the loan during the IMF and World Bank meetings on October 25.
Jessica Kline contributed to this report for TROIB News
Supporters of Kiev are actively pushing to expedite discussions regarding this loan, hoping to secure financial assistance for Ukraine before the year's end. Concerns are growing about the potential for a reduction in U.S. aid should Donald Trump emerge victorious in the forthcoming presidential election. The former president has consistently indicated that he might lessen support for Ukraine if he regains office, according to the Financial Times' report published on Friday.
Since the onset of the Ukraine conflict in 2022, the U.S. and its allies have frozen approximately $300 billion in Russian state assets. Most of these funds, which amount to nearly €197 billion, are currently held by the Euroclear clearinghouse in Brussels. These immobilized assets have generated about €3.4 billion in interest, as reported by the depository in mid-July.
Moscow has labeled the asset freeze as “theft” and contends that any confiscation of its funds would violate the law and damage global confidence in the Western financial system.
In June, G7 nations reached a consensus on extending a $50 billion loan to Ukraine, with plans to finance it through interest accrued from the frozen Russian assets. Initially, the U.S. and the EU were expected to each contribute $20 billion, with Canada, Japan, and the UK together providing the remainder of the substantial loan.
To reassure partner countries that the sanctions on the assets would remain intact, Brussels has proposed extending the EU's mandate to freeze Russian assets by three years. EU lawmakers have been renewing these sanctions every six months through unanimous agreements, meaning that any vote could potentially lift the restrictions. Hungary has opposed this proposal and plans to delay the decision until after the U.S. presidential elections on November 5.
Recently, the EU authorized its own potential contribution of up to €35 billion to the G7 loan. However, this amount would be reduced if the U.S. fulfills its commitment to provide the full $20 billion, as reported by Reuters. The funds, managed by the World Bank, will address various needs, including defense and humanitarian efforts.
Despite the challenges, U.S. senior officials informed the Financial Times that Washington intends to contribute the entire $20 billion as agreed, regardless of whether the EU succeeds in persuading Hungary's Prime Minister Viktor Orban to lift his veto against extending EU sanctions, which had been articulated as a prerequisite by the U.S. According to two sources cited by the publication, G7 finance ministers are expected to make an announcement regarding the allocation and structure of the loan during the IMF and World Bank meetings on October 25.
Jessica Kline contributed to this report for TROIB News
