The Treasury Department on Tuesday extended a $20 billion loan to Ukraine funded by seized Russian assets as part of a broader Group of Seven (G7) effort to strengthen Ukraine's defense.
The money will be transferred to Ukraine on Tuesday morning through the World Bank, which received a loan from the United States. The loan makes up nearly half of the $50 billion G7 Extraordinary Revenue Encouragement (ERA) loan program aimed at supporting Ukraine with a wide range of war-related costs.
Treasury Secretary Janet Yellen said: “These funds, paid for with windfall proceeds from Russia's own disabled assets, will provide a critical injection of support in defending Ukraine from an unprovoked war of aggression.'' ” he said. stated in a statement.
“The $50 billion jointly provided by the G7 through this initiative will help ensure Ukraine has the emergency services, hospitals, and other resources it needs to maintain the foundations of its brave resistance.”
Ukrainian President Volodymyr Zelenskiy said Tuesday he is “deeply grateful” to President Biden, President Yellen and members of Congress from both parties for supporting the use of seized Russian assets to strengthen Ukraine's defenses.
“This decision is a powerful act of justice. By using Russian assets to support Ukraine, the G7 is holding the aggressor accountable,” Zelenskiy said. I wrote it on social platform X.
“This sends a clear and resolute message: Russia must pay the price for its brutal war. Putin's regime must face the consequences of its violations of international law, war crimes, and attacks on democracy. .”
The loan comes as Ukraine's government and its allies in Washington, D.C., prepare for a major shift in policy toward conflict with Russia.
President-elect Trump and many Republicans have criticized the Biden administration's efforts to fund Ukraine's defense, arguing that the money should instead be spent on domestic issues.
Funding to Ukraine has been a frequent flashpoint in government funding negotiations since the Russian invasion in 2022, and Trump's inauguration is likely to turn off the spigot.
President Trump also called for an immediate end to the war in Ukraine, calling for an immediate ceasefire this weekend. Ukraine supporters are concerned that Trump could force Zelensky to cede territory occupied by Russia in 2022.
