Global Support for Ukraine: G7's Financial Backbone

The U.S. Treasury Department has transferred $20 billion of a $50 billion G7 loan for Ukraine to a World Bank fund to provide economic support to the war-torn nation. This move fulfills the U.S.'s commitment, leveraging frozen Russian assets to finance Ukraine's needs amidst the ongoing conflict with Russia.

The United States Treasury Department confirmed the transfer of $20 billion, part of a larger $50 billion G7 loan for Ukraine, to a World Bank intermediary fund, designed to provide crucial financial aid to the embattled nation. This transaction aligns with the U.S.'s pledge to parallel European Union support.

The funding directive was executed before Donald Trump's presidential inauguration to safeguard it from potential policy reversals. Trump's prior statements expressed concern over the level of U.S. aid to Ukraine, suggesting it may be reduced under his leadership.

The comprehensive $50 billion credit package, supported by frozen Russian assets, positions the G7 democracies as pivotal financiers of Ukraine's current and future needs, excluding military aid, which requires U.S. congressional approval. Treasury Secretary Janet Yellen emphasized the importance of this economic support in sustaining Ukraine's essential services during the conflict.

(With inputs from agencies.)