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Treasury Department Announces Disbursement of $20 Billion Loan to Benefit Ukraine, To Be Repaid with Proceeds Earned from Immobilized Russian Sovereign Assets
The original idea was that $10 billion would go through the World Bank and the rest of the $10 billion through a new U.S. facility, which would also be able to finance arms. The World Bank is strictly prohibited to do anything with arms.
The EU is ready to provide 18 billion euros, which can be used for arms, and Canada, the UK and Japan will together give $10 billion through the World Bank facility. They have all committed to do so in December.
DEPARTMENT OF THE TREASURY
Press Releases
Treasury Department Announces Disbursement of $20 Billion Loan to
Benefit Ukraine, To Be Repaid with Proceeds Earned from Immobilized Russian Sovereign Assets
December 10, 2024
WASHINGTON — Today, the United States Department of the Treasury is announcing
the disbursement of $20 billion for the benefit of Ukraine, as part of the $50 billion G7 Extraordinary Revenue Acceleration (ERA) Loans initiative.
“These funds – paid for by the windfall proceeds earned from Russia’s own immobilized assets – will provide Ukraine a critical infusion of support as it defends its country against an unprovoked war of aggression,” said Secretary of the Treasury Janet L. Yellen. “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.”
Following Russia’s brutal invasion of Ukraine, G7 members took bold action to immobilize Russia’s sovereign assets in their jurisdictions and committed that these assets will remain immobilized until Russia ends its aggression and pays for the damage it has caused to Ukraine—paving the way for G7 ERA loans. Today, the United States followed through on its October commitment to provide Ukraine with $20 billion under this initiative, by transferring these funds to the World Bank’s Facilitation of Resources to Invest in Strengthening Ukraine Financial Intermediary Fund (F.O.R.T.I.S. Ukraine FIF), through which they will be made available to Ukraine. Through the ERA initiative, the G7 has drawn forward the windfall proceeds from immobilized Russian sovereign assets, using those proceeds to support Ukraine.
Ongoing support for Ukraine in the face of Russian aggression demonstrates the resolve of the United States and our partners to defend democracy against belligerent authoritarian regimes, to protect the global economy, and to reinforce our collective security. Supporting Ukraine is also vital for the national interest of the United States. Letting Ukraine fall would invite further aggression by Putin and jeopardize the safety of our NATO allies in Europe, who we are committed by treaty to defend. A successful Ukraine will demonstrate the resolve of the United States and our partners to defend democracy against aggression, protect the global economy, and reinforce our collective security.
ROBERT MCCONNELL
Co-Founder, U.S.-Ukraine Foundation
Director of External Affairs, Friends of Ukraine Network
The introduction is Mr. McConnell’s and does not necessarily represent the views of the U.S.-Ukraine Foundation or those of the Friends of Ukraine Network (FOUN).