Biden Administration Moves to Forgive $4.7 Billion in Loans to Ukraine

The Biden administration announced its decision to forgive approximately $4.7 billion in loans to Ukraine. With support from a congressional bill, the loans aim to aid Ukraine's war efforts against Russia. This move faces potential opposition from Congressional members, particularly from Republican Senator Rand Paul.

The Biden administration has announced plans to forgive approximately $4.7 billion in U.S. loans to Ukraine, according to State Department spokesperson Matthew Miller. This decision comes as part of ongoing efforts to bolster Ukraine amid its conflict with Russia, as the administration seeks to utilize its remaining time in office to the fullest.

The move was made possible by a funding bill passed by Congress in April, which included $9.4 billion in forgivable loans for Ukraine's economic and budgetary support. Of this, President Biden has the authority to cancel half after November 15. The bill allocated a total of $61 billion to support Ukraine in its ongoing war against a Russian invasion that began in February 2022.

Despite this significant financial aid, the decision could still face obstacles. Congress holds the potential to block the loan forgiveness. Senator Rand Paul, known for his criticism of U.S. support to Ukraine, has filed a motion of disapproval. However, most senators from both parties back assistance to Ukraine. President Biden has ordered expedited aid delivery before he exits office on January 20 due to concerns that President-elect Donald Trump might curb U.S. support.

(With inputs from agencies.)