Biden administration gives $20B loan to Ukraine backed by profits from ‘unstable’ Russian assets

The Biden administration announced on Tuesday that it has distributed 20 billion dollar loan to Ukraine This would be offset by profits generated from “frozen” Russian assets.

“These funds – paid for by windfall income earned from Russia’s own frozen assets – will provide vital support to Ukraine as it defends its country against an unprovoked war of aggression,” Treasury Secretary Janet Yellen said in a statement.

are part of the funds distributed $50 billion loan initiative Earlier this year, leaders of the Group of Seven countries agreed to support Ukraine with “budgetary, military and reconstruction assistance.”

Under the terms of the agreement, the United States, Canada, France, Germany, Italy, Japan and the United Kingdom will each provide war-torn Ukraine with a large loan to be recovered from the profits of approximately $280 billion in frozen Russian assets. Which are mostly in Europe.

Yellen said, “The $50 billion the G7 is collectively providing through this initiative will help ensure that Ukraine has the emergency services, hospitals and other foundations needed to maintain its brave resistance.” The resources are there.”

“The steps we will continue to take to limit U.S. security assistance to Ukraine and to decisively tighten sanctions on Russia will move Ukraine forward in defending its sovereignty and achieving a just peace,” he said.

“Right now, (Russian President Vladimir Putin) is engaging our alliance in a contest of wills, hoping we will tire and eventually withdraw. But, through constructive policymaking and G7 unity, we are sending an unmistakable message of resolve by making Russia bear more of the cost of its illegal war rather than the taxpayers in our alliance.

The Biden administration has tasked the World Bank with distributing the megaloan to Ukraine.

Ukrainian President Volodymyr Zelensky said he was “deeply grateful” to Presidents Biden and Yellen for the financing.

“This critical support, funded by stable Russian assets, will strengthen Ukraine’s defense and help protect our sovereignty and people from unprovoked aggression,” Zelensky wrote on Twitter.

“This decision is a powerful act of justice,” he said. “By using Russia’s assets to support Ukraine, the G7 is holding the aggressor accountable.”

“It sends a clear and strong message: Russia must pay for its brutal war, Putin’s regime must face consequences for its violations of international law, war crimes and attacks on democracy.”

The loan was announced less than six weeks before President-elect Donald Trump takes office.

The 45th president has promised to quickly bring peace to Ukraine upon returning to the Oval Office.

Trump, 78, suggested in February that any US aid to Ukraine should be in the form of loans.