WASHINGTON D.C. – Ukraine is set to receive $50 billion in loans from Group of Seven allies, with the distribution of the funds scheduled to begin by the end of the year. The White House announced the financial support on Wednesday, specifying that the United States will be contributing $20 billion to the total amount.
The loans are backed by frozen Russian assets, and President Joe Biden emphasized the importance of providing assistance to Ukraine without burdening American taxpayers. The move comes as Ukraine continues to face the aftermath of Russia’s invasion, with the loans aimed at supporting the country in its efforts to defend and rebuild.
Treasury Secretary Janet Yellen, along with Ukraine’s finance minister Sergii Marchenko, formalized the agreement stating that the U.S. loan will be covered by the proceeds from the immobilized Russian sovereign assets, rather than taxpayer dollars. Yellen pointed out the risks of allowing Ukraine to fall, warning of potential further aggression from Russian President Vladimir Putin and the implications for NATO allies in Europe.
The remaining $30 billion of the loans are expected to come from the European Union, the United Kingdom, Canada, Japan, and other allies. The unique approach of using Russia’s frozen assets to support Ukraine’s defense efforts has been hailed as unprecedented. Daleep Singh, the deputy national security adviser on international economics, emphasized the significance of leveraging the value of these assets in funding Ukraine’s defense while upholding the rule of law and demonstrating solidarity.
The disbursement of the loans has been met with some skepticism, particularly due to the upcoming presidential election. However, Defense Secretary Lloyd Austin expressed confidence in the continuation of military aid to Ukraine, affirming that the flow of materials will remain consistent. The Biden administration remains firm in its stance against authorizing Ukraine to use U.S.-provided ATACM missiles to strike deep into Russia.
Despite challenges and differing views on the threat posed by Russia, the financial and military support provided to Ukraine aims to address the ongoing crisis. The World Bank’s assessment underscores the significant costs involved in reconstruction and recovery efforts in Ukraine, highlighting the long-term commitment required from the international community.