Ukraine Receives $20 Billion Loan from US Treasury

The U.S. Treasury Department confirmed on Dec. 10 that a $20 billion loan had been granted to Ukraine, financed by seized Russian assets, just before the incoming Trump administration assumes power in about a month.

The department mentioned that the Treasury has kept its commitment made in October to provide $20 billion in aid, secured by frozen Russian sovereign assets, with additional loans from Britain, Canada, and Japan.

Janet Yellen, the Treasury Secretary, indicated that the funds are “sourced from the windfall proceeds acquired from Russia’s own immobilized assets” and will assist Kyiv in defending against the Russian incursion initiated in February 2022.

“The G7’s joint contribution of $50 billion through this initiative will ensure Ukraine has the necessary resources to maintain emergency services, hospitals, and other pillars of its courageous resistance,” Yellen commented, emphasizing that the money aims to empower Ukraine to “defend its sovereignty.”

The $50 billion credit over 30 years will be repaid using the interest generated from around $300 billion in frozen Russian sovereign assets immobilized since the Russian invasion in February 2022. The G7 nations had been deliberating on the plan for months and finalized terms in October, prior to President-elect Donald Trump’s election win.

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The Treasury verified that the funds were transferred to a new World Bank fund named the Facilitation of Resources to Invest in Strengthening Ukraine Financial Intermediary Fund. The international lender’s board greenlit the establishment of the fund in October, with Russia being the sole dissenting country.

Moscow is challenging our coalition in a battle of wills, hoping for our exhaustion and eventual retreat,” Yellen remarked in her statement. “However, by employing innovative policymaking and the unity of the G7, we are displaying firm resolve by forcing Russia to increasingly bear the costs of its illicit war.”

Throughout the 2024 campaign, Trump indicated his desire for Ukraine and Russia to negotiate a peace deal to halt the war, which he deems as senseless. He has also criticized the U.S. for providing billions of dollars in aid to Ukraine since early 2022.

Following Trump’s victory in the Nov. 5 election, Ukrainian President Volodymyr Zelenskyy stated that the war will likely conclude “sooner” with Trump at the helm but currently lacks an “end date.”

Zelenskyy has held multiple meetings with Trump post-election, including during an event in France over the past weekend. On Sunday, Trump issued a statement on Truth Social urging Russian President Vladimir Putin to engage in negotiations to end the war, following the fall of Syrian President Bashar al-Assad’s regime to a coalition of factions.

“An immediate cease-fire should be implemented, and negotiations must commence,” Trump emphasized. “Too many lives are being senselessly lost, too many families devastated, and if it persists, it could escalate into something much larger and graver. I know Vladimir well. This is his moment to act.”

Since Trump’s win, the Biden administration has announced several defense-related packages for Ukraine, authorized the deployment of anti-personnel mines, and reportedly sanctioned Ukraine to utilize U.S.-made long-range ATACMS missiles to target Russian territory.

Reuters contributed to this report.

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