The U.S. is close to finalizing a $20 billion contribution to a larger $50 billion loan package for Ukraine, aimed at supporting the country’s war effort. The loan, involving G7 allies, will be repaid using frozen Russian assets, with final details nearly completed.
U.S. Nearing Final $20B Contribution to Ukraine Loan
Treasury Secretary Janet Yellen announced that the United States is on the verge of finalizing a $20 billion contribution to a broader loan package designed to support Ukraine. The $50 billion package is part of a G7 agreement aimed at helping Ukraine finance its war efforts against Russia. The loan will be repaid using income generated from frozen Russian assets.
Yellen said the U.S. and its allies have been working to complete the loan package since it was agreed upon during the G7 summit in June. The goal remains to have the funds available to Ukraine by the end of the year.
Securing Funding Amid Political Uncertainty
One of the driving forces behind the loan is the desire to secure long-term funding for Ukraine’s war effort, especially given the political uncertainties in the U.S. Many Republicans, including former President Donald Trump, have expressed skepticism about continuing American aid to Ukraine. The loan package would ensure support remains regardless of the outcome of the upcoming U.S. presidential election.
The European Parliament has already moved ahead with its own contribution of $38 billion, while the UK has approved $3 billion. The U.S. allocation is expected to lower the European Union’s portion of the loan.
Concerns Over Frozen Russian Assets
A key element of the loan is its reliance on frozen Russian assets, most of which are held in Europe. The U.S. has been seeking assurances from the European Union that these assets will remain immobilized for a long period to ensure repayment of the loan. While some concerns have been raised, particularly about Hungary’s reluctance to support continued EU sanctions, Yellen expressed confidence that the assets would remain frozen.
U.S. Confidence in Loan Security
Despite the unresolved issue of additional sanctions, Yellen assured reporters that the U.S. is confident the loan will be secure. She highlighted that the broader sanctions program against Russia would be difficult to terminate while the invasion of Ukraine is ongoing.
According to Yellen, the loan will be serviced using Russian assets, ensuring that U.S. taxpayers are not responsible for repayment. The Treasury Secretary emphasized that while additional assurances were requested, the existing measures are considered strong enough to move forward with the U.S. contribution.
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