US gives Kyiv $20b loan from frozen Russian assets

The United States has granted Ukraine a significant $20 billion loan, sourced from Russian assets frozen since the Kremlin’s invasion of Ukraine nearly three years ago.

The announcement was made Tuesday by U.S. Treasury Secretary Janet Yellen, who emphasized that the funds would offer “a critical infusion of support as it defends its country against an unprovoked war of aggression.”

Since Russia’s invasion on February 23, 2022, democratic nations, led by the U.S. and the European Union, have implemented thousands of punitive measures, including sanctions and export restrictions, aimed at isolating the Kremlin.

The $20 billion loan is part of a broader initiative by the Group of Seven (G7) nations, which has pledged approximately $50 billion in financial support to Ukraine. The funds are being funneled through the World Bank under the Extraordinary Revenue Acceleration Loans program, which is financed by the interest accrued from immobilized Russian assets.

The G7 had reached an agreement on how to distribute the funds in October, with the first installment, including this $20 billion loan, slated for release this month. The U.S. made the move to ensure the money reached Ukraine even if Donald Trump, a vocal critic of U.S. aid to Ukraine, were to win the presidential election. Trump has previously expressed doubts about continued support for Ukraine, and his victory would have raised questions about future U.S. aid.

Ukrainian President Volodymyr Zelensky expressed his gratitude for the loan, thanking President Joe Biden, Yellen, and Congress for their support. “This critical support, funded by immobilized Russian assets, will strengthen Ukraine’s defense and help protect our sovereignty and people against unprovoked aggression,” Zelensky said. He also hailed the initiative as a powerful statement of accountability, underscoring the message that Russia must pay for its actions.

“This decision is a powerful act of justice,” Zelensky added. “Supporting Ukraine is not only about standing with one nation; it’s about ensuring security in Europe and delivering a powerful lesson to any would-be aggressor: accountability for acts of war is inevitable.”

The entire $50 billion in loans is expected to be fully disbursed to Ukraine by the end of 2027.