U.S. Races to Secure Ukraine's $20 Billion Aid Package

The Biden administration plans to provide Ukraine a $20 billion aid package, split between military and economic support, as part of a coordinated effort with the G7 and EU. This package hinges on U.S. Congress approval and involves using frozen Russian assets to back the loans.

The Biden administration is working to deliver $20 billion in aid to Ukraine, evenly divided between military and economic assistance. This effort is part of a larger $50 billion initiative involving the Group of Seven (G7) and the European Union. The aid package, as stated by the U.S. National Security Council, requires congressional approval for the military portion.

Following Russia's invasion of Ukraine in February 2022, the G7 countries froze Russia's sovereign assets. President Joe Biden announced these funds would enable a $20 billion loan package for Ukraine, ensuring no additional tax burden for U.S. citizens. Officials highlighted that the funding method, whether split or entirely economic, ensures $20 billion is directed to Ukraine this year.

U.S. Treasury Secretary Janet Yellen revealed that allies are nearing a final agreement on the package, supported by the interest on approximately $300 billion in frozen Russian assets. The European Union has aligned its strategies, approving plans to allocate the immobilized assets to Ukraine's recovery. The U.S. is expected to formalize agreements with Ukraine soon, in anticipation of the G7 finance ministers' resolutions.

(With inputs from agencies.)