U.S. loans Ukraine $20B from frozen Russian assets

U.S. loans Ukraine $20B from frozen Russian assets
by Darryl Coote
Washington DC (UPI) Dec 11, 2024
The United States has given Kyiv a $20 billion loan funded by Russian assets frozen since the Kremlin invaded Ukraine nearly three years ago.

The disbursement was announced Tuesday by the U.S. Treasury, whose secretary, Janet Yellen, said in a statement that the funds "will provide Ukraine a critical infusion of support as it defends its country against an unprovoked war of aggression."

Democratic nations, including the United States and the European Union, have responded to Russia's Feb. 23, 2022, invasion of Ukraine with thousands of punitive measures, including sanctions and export restrictions.

The $20 billion loan comes as part of the approximate $50 billion loan the Group of Seven democratic nations has agreed to give Ukraine. Known as the Extraordinary Revenue Acceleration Loans initiative, the loans are paid by interest earned from immobilized Russian assets and are to be disbursed to Kyiv by the World Bank.

In October, the G7 announced that consensus had been reached on how to distribute money, with the first installment to be made this month.

President Joe Biden had announced just weeks before from the Nov. 5 general election that the United States would release the first $20 billion loan in an effort seen as insurance that the funds would get to Ukraine even if Donald Trump won re-election.

Trump, who did win the election, has been a vocal critic of U.S. support for Ukraine, the future of which has now been thrown into doubt.

President Volodymyr Zelensky of Ukraine on Tuesday said he was "deeply grateful" to Biden, Yellen and Congress for the disbursement.

"This critical support, funded by immobilized Russian assets, will strengthen Ukraine's defense and help protect our sovereignty and people against unprovoked aggression," he said in a statement.

The Ukrainian leader praised the initiative by stating it holds Russia accountable while sending the message that it must pay for its war.

"This decision is a powerful act of justice," he said.

"Supporting Ukraine is not only about standing with one nation; it's about ensuring security in Europe and delivering a powerful lesson to any would-be aggressor: accountability for acts of war is inevitable.

The entire $50 billion is to be disbursed to Ukraine by the end of 2027.