The U.S. Department of the Treasury announced on Tuesday, December 10, that it will provide Ukraine with a $20 billion loan, stating that this loan will be covered by the interest generated from frozen Russian assets.
This funding will be transferred to Ukraine through the World Bank, which received the loan from the United States on Tuesday morning. This loan accounts for nearly half of the Group of Seven’s (G7) $50 billion Emergency Relief Assistance (ERA) Loan program, designed to help Ukraine cover various war-related expenses.
U.S. Treasury Secretary Janet Yellen said in a statement, “The funds – generated from the interest on frozen Russian assets – will provide crucial support for Ukraine, helping them defend their country in the face of unwarranted aggression.”
Yellen added, “The $50 billion loan provided by the G7 will ensure that Ukraine has the resources needed to maintain emergency services, hospitals, and support their courageous resistance.”
Ukrainian President Zelensky expressed gratitude on Tuesday to President Biden, Secretary Yellen, and bipartisan members of the U.S. Congress for supporting the use of detained Russian assets to strengthen Ukraine’s defense.
Zelensky wrote on the social media platform X: “This decision is a strong and just action. By utilizing Russian assets to support Ukraine, the G7 is holding the aggressor accountable. It sends a clear and firm message that Russia must pay the price for its brutal war actions, and the Putin regime must bear the consequences for violating international law, committing war crimes, and attacking democracy.”
“Supporting Ukraine is not just standing with one country, but ensuring Europe’s security and sending a powerful lesson to any potential aggressors: accountability for acts of war is inevitable.”
The G7 confirmed in October of this year that it would provide Ukraine with $50 billion in new loans, to be funded by frozen Russian assets.
The timing of this funding coincides with the Ukrainian government preparing for a potential shift in U.S. aid policy as Trump is set to take office in January of next year. Trump has questioned Biden’s significant financial support for Ukraine and indicated over the weekend that he intends to “deliberately” reduce aid to Kyiv in the future.
Since the beginning of the conflict between Russia and Ukraine, U.S. financial assistance to Ukraine has been a point of contention in government negotiations.
Trump and many Republicans have criticized Biden’s proposed aid policy as being excessively costly and have insisted that these funds should be used to address domestic issues.
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