US Lends Ukraine $20 Billion Before Biden's Departure

(Patria) - The United States announced yesterday that it has lent Ukraine $20 billion backed by interest on frozen Russian assets, as part of the G7's $50 billion support package agreed upon last summer.

President Joe Biden's administration pledged to send the loan before the end of the year amid concerns about whether the newly elected President Donald Trump will continue US support for Ukraine.

Trump, who takes office on January 20, has repeatedly criticized the amount of US aid to Ukraine, but has also said he would support the loan program.

Ukraine is heavily reliant on American and European military and financial aid as it seeks to halt the Russian invasion that began in February 2022.

A $61 billion US aid package for Ukraine was passed in April – the fifth since the war began in February 2022 – but is likely to expire early next year.

Today, @USTreasury is announcing the disbursement of $20 billion to benefit Ukraine as part of the $50 billion G7 Extraordinary Revenue Acceleration Loans Initiative. These funds are paid for by windfall proceeds earned from Russia’s own immobilized assets.https://t.co/stgSW88C9y

— Secretary Janet Yellen (@SecYellen) December 10, 2024

This means the $50 billion G7 loan is crucial to ensure Ukraine has sufficient funds and weapons to defend itself through the first half of 2025, should Trump cut off further support.

"These funds – paid for by windfall proceeds earned from Russia’s immobilized assets – will provide Ukraine with a critical infusion of support as it defends its country from an unprovoked war of aggression," US Treasury Secretary Janet Yellen said in a statement.

She also stated that the G7 loans will help ensure Ukraine has the resources it needs to maintain essential services, hospitals, and other foundations of its brave resistance, adding that Washington's support will help Kyiv defend its sovereignty and achieve a just peace.

The loan announcement followed months of negotiations between the US and its allies – including the European Union – on the best way to use hundreds of billions of dollars in frozen Russian assets to aid Ukraine without violating international law.

The US Treasury Department announced that Washington has transferred $20 billion to a World Bank fund, which will make the money available to Ukraine, reported the English-language news desk of Radio Free Europe.