US to give Ukraine US$20bn in G7 loan involving proceeds from frozen Russian assets
The United States intends to allocate US$20 billion to Ukraine as part of a US$50 billion loan, utilising proceeds from frozen Russian assets. The loan had been earlier agreed upon by the Group of Seven (G7) nations.
Source: Daleep Singh, deputy national security adviser to the White House, as reported by European Pravda, citing AP
Details: Speaking about the US$50bn G7 loan to Ukraine, Singh said "nothing like this has ever been done before".
"Never before has a multilateral coalition frozen the assets of an aggressor country and then harnessed the value of those assets to fund the defence of the aggrieved party all while respecting the rule of law and maintaining solidarity," he added.
The White House official said that President Joe Biden's administration intends to divide its share of the loan – US$20 billion – between military and financial assistance to Ukraine. Military aid requires approval from the US Congress.
"To be clear, either way, the US will provide $20 billion in support for Ukraine through this effort, whether it’s split between economic and military support or provided entirely via economic assistance," Singh said.
He announced that the loan's details would be agreed upon during a meeting of the Group of Seven finance ministers this week in the Italian city of Stresa.
Background:
- Reports indicated that the US is prepared to provide Ukraine with up to US$20 billion as part of the G7 loan. Until recently, it was expected that Washington's contribution would be less than initially planned, as the EU, due to Hungary's resistance, failed to implement a safeguard guaranteeing that Russian assets would remain frozen for at least three years. However, Washington has softened its stance.
- On Tuesday, the European Parliament approved the EU's contribution to the loan amounting to €35 billion (approximately US$38 billion), although this share is expected to decrease after the US makes its contribution.
- The UK separately approved its contribution of around US$3 billion.
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