The U.S. Treasury Department has announced a $20 billion loan for Ukraine, which will be repaid using profits from frozen Russian assets.
According to Treasury Secretary Janet Yellen, this funding will provide Ukraine with critical assistance.
"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. Together with America’s security assistance to Ukraine and the steps we will continue to take to decisively tighten sanctions on Russia, this action will further position Ukraine to defend its sovereignty and achieve a just peace. Right now, Putin is engaging our coalition in a contest of wills, counting on us to tire and ultimately retreat. But, through creative policymaking and the unity of the G7, we are sending an unmistakable message of resolve by making Russia increasingly bear the costs of its illegal war, instead of taxpayers in our coalition," Yellen said.
This initiative is part of the G7's plan to provide €50 billion to Ukraine using Russian assets. The funds will be formally offered as loans but repaid through a windfall tax on profits from frozen Russian assets.
The U.S. funds will not be sent directly to Ukraine. Instead, they have been transferred to the World Bank's Financial Intermediary Fund for Fostering Investment in Ukraine's Strengthening (F.O.R.T.I.S. Ukraine FIF).
