On October 23, the White House announced that Western allies were working on a $50 billion loan package for Ukraine, secured by profits from frozen Russian assets, including a $20 billion contribution from the United States.
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| The G7 loan to Ukraine is repaid with interest earned on frozen Russian sovereign assets. (Source: Getty Images) |
In an official statement announcing the aid package, US President Joe Biden affirmed that the $20 billion from the world's largest economy is part of the G7's support package for Ukraine.
The money would be paid back with interest earned on Russian sovereign assets currently frozen in the West.
"In other words, Ukraine can get assistance now without the tax burden," the White House boss stressed.
President Biden described the loans as supporting the Ukrainian people “as they defend and rebuild their country.”
US government officials consider the money crucial to an economy facing a special military campaign ahead of the winter months.
“Kiev will get the support it needs right now,” White House deputy national security adviser for international economics Daleep Singh stressed.
The announcement of the loan comes less than two weeks before the US presidential election.
Ukraine’s Western backers have been trying to speed up loan talks amid growing concerns that Washington’s aid to Kiev could be cut if Donald Trump returns to the White House. The former US president has repeatedly threatened to cut aid to Ukraine if he is elected.
The world’s largest economy will disburse at least half of the $20 billion by December, Singh said, with the government planning to use half of the loan for economic support and the other half for additional military aid to Kiev.
But the White House will need to secure additional authority from Congress to provide some of the loan as military aid. "If the White House cannot reach an agreement with the legislature to secure the necessary authority, the administration will change course and provide the entire loan amount as economic aid," the White House deputy national security adviser said.
The remaining $30 billion in the loan package will come from the European Union (EU) and G7 partners, including the UK, Canada and Japan.
“As we committed in June, the G7 will begin allocating aid for Ukraine’s benefit later this year,” Mr. Singh stressed. “This will help the country meet its urgent needs as winter approaches, and send a clear signal that the United States and our G7 partners will not tire of supporting Kiev.
More details will be announced after the meeting of G7 finance ministers this October."
Following Russia's military intervention in Ukraine, Western countries froze Moscow's assets in bank accounts in Europe and the United States as part of a broader wave of sanctions against Russia.
About 300 billion euros in Russian assets are frozen in Europe. Of these, more than 200 billion euros are in the EU, mainly in the accounts of Belgium's Euroclear, one of the world's largest payment and clearing systems.
According to Euroclear, as of mid-July 2024, the frozen assets had generated 3.4 billion euros ($3.7 billion) in interest.
As for Russia, the country's Foreign Ministry described the move to freeze its assets in Europe as theft, noting that the EU was targeting not only private funds but also Russian state assets.
Russian Foreign Minister Sergey Lavrov said: "The country will respond if the frozen assets in the West are confiscated. Moscow also has the right to confiscate funds of Western countries in Russia. We have every reason to take measures in response to such illegal decisions of the 27-member bloc."
Source: https://baoquocte.vn/tai-san-nga-bi-phong-toa-quang-ganh-lo-lien-quan-den-bau-cu-my-sap-gui-tien-den-ukraine-dung-nhu-cam-ket-291171.html
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