Washington, DC – The White House has announced that the Group of Seven (G7) will offer Ukraine a $50bn loan backed by interests accrued on Russian government assets frozen by the political and economic group of wealthy nations.
President Joe Biden said on Wednesday that the United States will cover $20bn of the loan, which “will be paid back by the interest earned from immobilized Russian sovereign assets”.
“In other words, Ukraine can receive the assistance it needs now, without burdening taxpayers,” Biden said in a statement.
“These loans will support the people of Ukraine as they defend and rebuild their country. And our efforts make it clear: tyrants will be responsible for the damages they cause,” he added.
Countries in the G7 – Canada, France, Germany, Italy, Japan, the United Kingdom, and the US – imposed heavy sanctions on Russia over its invasion of Ukraine in 2022, cutting off Moscow’s access to its own funds in their financial system.
Russia has rejected efforts to confiscate its assets, describing them as “21st-century piracy”.
The loan could help ease domestic pressures that the US is facing for its continuing military and budgetary aid to Ukraine.
Foreign donors have pledged 60 billion euros ($66bn) for Ukraine over a multiyear period to help the country rebuild.
While the Biden administration has committed to supporting Kyiv, earlier this year funds appropriated for Ukraine nearly ran out amid a standoff in Congress, with some Republicans growing sceptical of the aid, if not opposing it altogether.