The United States is prepared to lend up to $20 billion to Ukraine under the Group of Seven (G7) loan programme. The loan would be repaid from the proceeds of frozen Russian assets.
This was reported by The Financial Times citing sources.
Negotiations on the loan are accelerating as Western officials plan to complete financial support for Kyiv by the end of 2024. This is due to the risk of a change in US policy if Republican Donald Trump wins the presidential election in November, which could cut off aid to Ukraine.
Previously, it was expected that the US contribution to this loan would be smaller due to the European Union's difficulties in ensuring a prolonged freeze on Russian assets. However, according to sources, Washington has decided to provide the full amount of around $20 billion, even if the EU fails to persuade Hungary to lift its veto on extending sanctions against Russia.
G7 finance ministers plan to announce the structure of the loan when they meet in Washington on 25 October on the sidelines of the IMF and World Bank meetings. Negotiations on the final agreement are ongoing, and the US continues to consult with Congress and Ukraine on repayment terms.
G7 leaders previously agreed to provide Ukraine with $50 billion at their June 2024 summit, to be paid from the proceeds of frozen Russian assets.
Author: Danylo Pievchev