The United States is providing $20 billion in aid to Ukraine. The funds will be provided as part of a $50 billion loan approved by the Group of Seven (G7) countries. The loan will be repaid from the proceeds of frozen Russian assets.
This was reported by The U.S. Treasury Department.
"Through creative strategy and G7 unity, we are sending an unmistakable message of our determination to make Russia bear the growing burden of this illegal war instead of our coalition taxpayers," said U.S. Treasury Secretary Janet Yellen.
She also noted that Vladimir Putin hopes that Ukraine's allies will tire, but this decision should demonstrate their resilience.
"The $50 billion that the G7 is collectively providing under this initiative will help Ukraine secure the resources it needs to support emergency services, hospitals, and other foundations for its courageous resistance," Yellen added.
The Secretary emphasized that these measures, along with U.S. security assistance and sanctions against Russia, will strengthen Ukraine's ability to defend its sovereignty and achieve a just peace.
It is worth noting that the funds will be provided through a special World Bank fund under the Economic Resilience Action for Ukraine (ERA) initiative.
The U.S. Treasury also emphasized that Ukraine's defeat could lead to greater Putin aggression, which would threaten the security of the region and U.S. allies in Europe.
At the same time, the Belgian company Euroclear, which has $180 billion of Russian assets frozen in its account, emphasizes that the confiscation of these funds should be accompanied by the company's release from its obligations to Russia.
"We cannot find ourselves in a situation where assets are confiscated, and in a few years Russia will knock on the door and say: "I want to get money for my securities," and the assets are already gone. If the assets are confiscated, everything has to go, including the liabilities," said Valerie Urban, chairwoman of Euroclear, in an interview with Bloomberg.
According to the agreement, the EU will provide $20 billion and the United States will provide another $20 billion. Britain, Canada and Japan will each contribute $3.3 billion.
According to EU diplomats, the G7 will make an official announcement of this decision in the near future.
Each participant in the loan will provide its own loan, which will be repaid at the expense of profits from frozen Russian assets.
Author: Danylo Pievchev