On Tuesday, the U.S. Treasury Department announced the transfer of $20 billion—the U.S. share of a $50 billion G7 loan package for Ukraine to a World Bank intermediary fund dedicated to economic and financial aid.
This move underscores the U.S. commitment to supporting Ukraine in its defense against Russia’s invasion while preemptively safeguarding the funds before the January inauguration of President-elect Donald Trump.
The Treasury’s transfer fulfills an October pledge to match the European Union’s $20 billion contribution to the loan package. Additional smaller contributions from Britain, Canada, and Japan complete the G7 initiative, designed to support Ukraine’s economy and infrastructure amidst the ongoing conflict.
BREAKING: Biden admin greenlights a $50 billion “loan” to Ukraine pic.twitter.com/W6rCPg6XNg
— Libs of TikTok (@libsoftiktok) December 10, 2024
The funds are backed by the interest proceeds from $300 billion in frozen Russian sovereign assets immobilized following Russia’s February 2022 invasion.
The timing of the transfer is notable, as it avoids potential delays or reversals by the incoming Trump administration. Trump has criticized the level of U.S. aid to Ukraine and promised to quickly end the conflict without detailing his plans.
The $50 billion loan package is structured as a 30-year