U.S. and G7 Secure Historic $50 Billion Loan for Ukraine Amid Tensions

The U.S. finalizes a $20 billion loan to Ukraine, part of a $50 billion package with contributions from the EU and G7 nations. The funds, sourced from frozen Russian assets, aim to provide military and economic aid to Ukraine amidst ongoing tensions with Russia.

The United States has finalized a $20 billion loan to Ukraine, forming a crucial part of a $50 billion international lending package backed by frozen Russian assets. U.S. Treasury Secretary Janet Yellen and Ukrainian Finance Minister Serhiy Marchenko signed the agreement, which aligns with contributions from the European Union and G7 allies.

The loan, repayable through earnings from over $300 billion in sovereign Russian assets immobilized since the Ukraine invasion, allows for immediate assistance without burdening taxpayers, President Joe Biden stated. The administration aims to allocate half for military aid, pending Congressional approval.

The remaining funds will support economic aid via the World Bank Trust Fund. The initiative, endorsed by G7 leaders, has faced delays due to discussions over the long-term freeze of Russian assets but proceeds without additional EU assurance, given the urgency of the support.

(With inputs from agencies.)