U.S. Loans Ukraine $20 Billion Before Biden's Departure

WASHINGTON -- The United States on December 10 said it has loaned Ukraine $20 billion backed by the interest earned on frozen Russian assets, part of a $50 billion G7 support package agreed to this summer.

The Biden administration had promised to distribute the loan before the end of the year amid concern over whether President-elect Donald Trump would continue U.S. support for Ukraine.

Trump, who enters office on January 20, has repeatedly criticized the amount of U.S. aid to Ukraine but also said he would support a lend-lease program.

Ukraine is heavily dependent on U.S. and European military and financial aid as it seeks to stop Russia's invasion, now in its third year. The $61 billion U.S. aid package for Ukraine passed in April -- the fifth since the war started in February 2022 -- but will likely run out by early next year.

That means the $50 billion G7 loan is crucial to ensuring Ukraine has enough funds and weapons to defend itself through the first part of 2025 should Trump halt further support.

"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," U.S. Treasury Secretary Janet Yellen said in a December 10 statement.

The G7's loans "will help ensure Ukraine has the resources it needs to sustain emergency services, hospitals, and other foundations of its brave resistance," Yellen said, adding that Washington's support would help Kyiv "defend its sovereignty and achieve a just peace."

The loan announcement follows many months of talks between the United States and its allies -- including the European Union -- about the best way to use frozen Russian assets, worth hundreds of billions of dollars, to help Ukraine without breaking international law.

The treasury said Washington had transferred $20 billion to a World Bank fund, which will make the money available to Ukraine.