The Treasury Department gave Ukraine a $20 billion loan funded by seized Russian assets Tuesday as part of a broader G7 effort to boost the country’s defense.
The money will be transmitted to Ukraine through the World Bank, which received the loan from the U.S. on Tuesday morning. The loan makes up nearly half of the $50 billion G7 Extraordinary Revenue Acceleration (ERA) Loans program, which is intended to help Ukraine with a wide range of war-related expenses.
“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,” Treasury Secretary Janet Yellen said in a statement.
“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.”
Ukrainian President Volodymyr Zelensky said Tuesday he was “deeply grateful” to President Biden, Yellen and lawmakers in both parties who supported using seized Russian assets to bolster Ukraine’s defense.
“This decision is a powerful act of justice. By utilizing Russia’s assets to support Ukraine, the G7 is holding the aggressor accountable,” Zelensky wrote on X.
“This sends a clear and resolute message: Russia must pay for its brutal war, Putin’s regime must face the consequences of its violations of international law, war crimes, and assault on democracy.”
The loan comes as Ukraine’s government and its supporters in Washington, D.C., brace for a significant shift in policy toward the conflict with Russia.
President-elect Trump and many Republican lawmakers have criticized Biden administration efforts to fund Ukraine’s defense, insisting the money should instead go toward domestic issues.
Funding for Ukraine has been a frequent flashpoint in government funding negotiations since Russia’s 2022 invasion, and the spigot is likely to close upon Trump’s inauguration.
Trump has also pushed to end the war in Ukraine as quickly as possible, calling this weekend for an immediate ceasefire. Supporters of Ukraine fear Trump could push Zelensky to cede territory occupied by Russia in 2022.
