US disburses $20 bn Ukraine loan backed by profits from Russian assets

Kathmandu: The United States announced that it has disbursed a $20 billion loan for Ukraine, backed by proceeds earned on frozen Russian assets, as part of a $50 billion G7 support package.

The money forms a significant chunk of the $50 billion in new loans finalized by the Group of Seven advanced economies in October, aimed at helping Kyiv as it struggles to fight back against Moscow’s ongoing invasion. The funds come at a crucial juncture for Kyiv as questions swirl over the future of its US backing once President Joe Biden hands over power to Donald Trump in January.

The incoming president has questioned the level of financial support given to Ukraine following Russia’s 2022 invasion, saying over the weekend he will “probably” reduce aid to Kyiv. ‘These funds  paid for by the windfall proceeds earned from Russia’s own immobilized assets will provide Ukraine a critical infusion of support as it defends its country against an unprovoked war of aggression.’ said US Treasury Secretary Janet Yellen.’

US Treasurer Yellen said in a statement. ‘The G7’s loans will help ensure Ukraine has the resources it needs to sustain emergency services, hospitals and other foundations of its brave resistance,’ said Yellen’.

Ukrainian President Volodymyr Zelensky said Tuesday that he was ‘deeply grateful’ for the disbursement, calling it ‘a powerful act of justice.’ The support ‘will strengthen Ukraine’s defense and help protect our sovereignty and people against unprovoked aggression,’ said in separate statement.

RSS/AFP