Yellen Announces US and G7 Partners Nearing Completion of $50 Billion Loan for Ukraine
Treasury Secretary Janet Yellen announced on Oct. 22 that the United States and its partners in the Group of Seven (G7) nations are nearing a final plan to provide up to $50 billion in loans to Ukraine to combat a Russian invasion.
The G7 nations—comprising the United States, Canada, France, Germany, Italy, Japan, and the UK—had outlined a tentative agreement in June to supply $50 billion in fresh loans to Ukraine using frozen Russian assets as collateral.
The U.S. is expected to contribute around $20 billion to this loan initiative.
Yellen stated during a press conference at the start of the International Monetary Fund and World Bank annual meetings that, “We’re very close to finalizing America’s share of this $50 billion loan package.”
Since 2022, the United States has allocated approximately $175 billion in taxpayer funds for Ukraine-related expenditures, making it the primary financial supporter of Kyiv throughout the conflict.
Yellen assured that the loan would be backed by Russian assets and that American taxpayers would not bear the cost of this latest show of support for Ukraine.
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The bulk of the intended loan will be provided by the European nations.
Yellen recognized the need for the European Union to regularly renew sanctions freezing Russian assets under their supervision every six months.
She, however, minimized concerns that this periodic renewal might hinder European involvement in the loan plan, stating that it would be “unthinkable” for the EU not to maintain frozen Russian assets while the conflict in Ukraine persists.
She pointed out that Russian assets have been under EU control since 2014 following the Russian annexation of Crimea.
Yellen mentioned that the U.S. has requested some enhancements to ensure that Russian assets held by the EU can support the Ukrainian loan but expressed confidence that “this is a secure loan that will be backed by Russian assets, managed by Russia, and not by American taxpayers.”
The legislative body indicated that the final EU contribution to the Ukrainian loan plan might be lower, contingent on the contributions from non-EU G7 members.
Yellen confirmed that the U.S. is monitoring Russian efforts to evade existing sanctions.
She also mentioned preparations for the introduction of “significant new sanctions” as early as next week, targeting third-party countries supplying critical military resources to Russia.
The treasury secretary did not specify the entities that would be affected by these upcoming sanctions.
The outcome of the Nov. 5 U.S. elections might impact the level of additional U.S. assistance to Ukraine.
Vice President Kamala Harris has indicated a willingness to continue the current U.S. stance on Ukraine if elected president.
Former President Donald Trump, vying for a return to the White House with the Republicans, has displayed some reluctance to further fund the Ukrainian war effort and hinted at expediting negotiations for an end to the conflict.
