US Treasury Secretary Janet Yellen said the above amount is part of the $50 billion loan package that the Group of 7 developed economies (G7) agreed to approve to support Ukraine. The $50 billion credit package lasting for 30 years will be taken from the profits of $300 billion in Russian assets frozen in the West.
Reuters on November 10 quoted Ms. Yellen as saying G7 loans will help ensure Ukraine has enough resources needed to maintain emergency services, hospitals and other activities supporting the conflict with Russia.
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Ukrainian President Volodymyr Zelensky on November 10 expressed gratitude for the above move, emphasizing “this is a strong act of justice”. Russian officials did not immediately comment on the US move.
Initially, US President Joe Biden’s administration planned to divide the $20 billion loan to Ukraine into two halves, one half for military and the other for the economy. However, funds for military purposes require congressional approval, which will be difficult when the Republican Party will control both chambers in the next term. Therefore, the White House’s latest plan is to put all the money for non-military purposes.
President of Ukraine Volodymyr Zelensky (left) met with US Treasury Secretary Janet Yellen in February 2023
The US Treasury Department said the money will be transferred to a new WB fund established to provide financial support to Ukraine, with a mechanism called “Facilitating investment resources in strengthening the intermediary fund”. Finance Ukraine” (FORTIS Ukraine FIF).
A US Treasury official said Janet Yellen personally supervised the process of transferring $20 billion to the WB fund. The World Bank has established a similar fund to provide economic and humanitarian support in Afghanistan. This organization has a charter that will not handle military aid packages.
