US announces $20 billion loan for Ukraine as part of G7 initiative
The U.S. Treasury Department announced on Dec. 10 that it will provide $20 billion in loan assistance to Ukraine, marking its contribution to a broader $50 billion initiative supported by G7 countries.
The loan will be repaid using proceeds from frozen Russian assets.
U.S. Treasury Secretary Janet Yellen emphasized the significance of the funding, stating, “The $50 billion collectively being provided by the G7 through this initiative will help ensure Ukraine has the resources it needs to sustain emergency services, hospitals, and other foundations of its brave resistance.”
The funds will be channeled to Ukraine through the World Bank’s Facilitation of Resources to Invest in Strengthening Ukraine Financial Intermediary Fund (F.O.R.T.I.S. Ukraine FIF), ensuring immediate availability for critical needs.
The U.S. contributed $20 billion of the total loan, matched by European Union countries, including France, Germany, and Italy, which will provide $19.4 billion together.
Additional contributions include $3.7 billion from Canada, $3.07 billion from Japan, and $2.9 billion from the United Kingdom.
While Western countries have frozen $300 billion in Russian assets, only the annual income generated — approximately $3.2 billion — is accessible.
These proceeds will back the $50-billion loan, with the majority of the frozen assets located in Europe.
Speaking at the G7 summit in June, President Volodymyr Zelensky called for a mechanism to fully confiscate the frozen Russian funds, highlighting their potential to bolster Ukraine’s long-term recovery.
According to October reports, the G7 plans to keep these Russian assets immobilized even after the war ends.
Martin Fornusek
