Ukraine is set to receive $50 billion in loans from Group of Seven allies, backed by frozen Russian assets, in a historic effort to support the country in its fight for survival after Russia’s invasion. The United States is providing $20 billion of the total loan, with distribution expected to begin by year’s end.
President Joe Biden emphasized the importance of assisting Ukraine without burdening taxpayers, using interest earned on profits from Russia’s frozen central bank assets as collateral. The loan is a result of negotiations and legislation signed by Biden to seize Russian assets in the U.S.
The G7 allies, including the European Union, the United Kingdom, Canada, and Japan, are contributing the remaining $30 billion of the loan. The funds will be used to support Ukraine’s economy and military, with defense aid requiring congressional approval.
The Biden administration’s decision to use Russia’s frozen assets to aid Ukraine faced initial resistance but gained momentum after extensive negotiations. The loan aims to address Ukraine’s reconstruction and recovery costs, estimated at $486 billion over the next 10 years by the World Bank.
Despite concerns about the timing of the loan with the upcoming presidential election, Defense Secretary Lloyd Austin expressed confidence in the aid delivery timeline and reiterated the administration’s opposition to granting Ukraine authority to use certain missiles against Russia.
This unprecedented loan demonstrates international solidarity and a commitment to holding aggressor countries accountable while upholding the rule of law.