Biden approves $ 20 billion Ukraine loan backed by frozen Russian assets
This is part of a $50 billion Western loan package for Ukraine secured by revenue from frozen Russian money.
US President Joe Biden has finalized a $20 billion loan package for Ukraine, secured against revenue from Russian sovereign assets frozen in US jurisdiction.
When Russia launched its full-scale invasion, Western nations froze approximately $300 billion in Russian Central Bank reserves. While proposals to confiscate these funds for Ukraine’s reconstruction were frequent, Western countries refrained from taking such action.
“Ukraine can receive the assistance it needs now without burdening taxpayers. These loans will support the people of Ukraine as they defend and rebuild their country. And our efforts make it clear: tyrants will be responsible for the damages they cause,” Biden stated.
After extensive negotiations between the US, UK, and EU, officials devised a mechanism to provide Ukraine with $50 billion in loans, backed by income from frozen Russian assets. Ukraine will use this income to service international loans.
The European Parliament approved its portion of €35 billion on Wednesday, to be provided through 2025. Their statement confirmed Ukraine’s discretion in using the income from frozen Russian assets beyond debt servicing alone. The UK announced similar loan terms the previous day.
Read more:
- $ 19 billion for Ukraine: US races October deadline on Russian assets
- Dutch banks release € 560 million in Russian assets amid sanction loopholes
- EU seeks to sidestep Hungary’s veto in sending Russian frozen assets profits to Ukraine
- AP: G7 leaders agree to lend Ukraine billions in Russia’s frozen assets
- EurActiv: Ukraine plans to use Russia’s frozen assets to boost arms production
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