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U.S. announces $20 billion loan from seized Russian assets

11.12.2024 12:15
The U.S. Treasury Department said on Tuesday it has disbursed a $20 billion loan to Ukraine, funded by profits derived from frozen Russian assets.
A handout photo released by the press service of the State Emergency Service (SES) of Ukraine shows Ukrainian rescuers work at the site of a rocket strike in Zaporizhzhia, Ukraine, 10 December 2024, amid the ongoing Russian invasion. At least three people were killed and 16 others injured when a ballistic missile hit a medical center and an adminis
A handout photo released by the press service of the State Emergency Service (SES) of Ukraine shows Ukrainian rescuers work at the site of a rocket strike in Zaporizhzhia, Ukraine, 10 December 2024, amid the ongoing Russian invasion. At least three people were killed and 16 others injured when a ballistic missile hit a medical center and an adminisEPA/STATE EMERGENCY SERVICE OF UKRAINE / HANDOUT

The measure, based on earlier commitments by the Group of Seven (G7) nations, forms part of a broader $50 billion financial assistance package designed to support Ukraine’s civilian infrastructure and economy as it resists Russian aggression.

Polish sources familiar with the initiative note that the decision aligns with ongoing G7 efforts to ensure Russia ultimately bears the financial burden of its invasion, rather than foreign taxpayers. According to U.S. Treasury Secretary Janet Yellen, channeling aid through frozen Russian assets means Moscow shoulders the cost of its “illegal war.”

U.S. authorities transferred the $20 billion—reported earlier by the BBC—to a fund managed by the World Bank. The money is intended strictly for non-military uses, such as bolstering emergency services, hospitals, and other critical infrastructure. The U.S. administration’s initial plan to allocate half of the funds to military assistance met with congressional delays, including prolonged negotiations within the House of Representatives, before a separate $61 billion in military aid was eventually approved in April.

The BBC also noted that President-elect Donald Trump has publicly questioned the rationale behind massive aid to Ukraine. He has pledged to seek a swift end to the conflict soon after taking office, casting uncertainty on the future of U.S. support under his administration.

This latest financial move follows months of discussion among the U.S. and its G7 partners on how to best use the approximately $325 billion in frozen Russian assets. In October, the G7 reached an agreement to leverage interest earnings from these assets—around $3 billion annually—to underwrite $50 billion in credit over three decades. The European Union has similarly committed more than €18 billion in credit, funded through analogous mechanisms.

By employing funds sourced from seized Russian assets, Western allies aim to provide Ukraine with long-term stability, ensuring that essential public services can function despite the ongoing conflict. The G7 states have consistently maintained that Russian assets will remain frozen until Moscow fully ends its aggression and compensates Ukraine for the damage inflicted since the start of its full-scale invasion in 2022.

(jh)

Source: PAP, BBC