US provides Ukraine with $20 billion loan to be repaid using frozen Russian assets

The United States has announced a $20 billion loan to Ukraine, according to the Department of the Treasury. The loan will be repaid using funds obtained from frozen Russian assets.

The loan was granted as part of the G7 Extraordinary Revenue Acceleration (ERA) initiative, totaling $50 billion. With this contribution, the United States has fulfilled its share of the commitments.

The Department of the Treasury noted that the funding will provide Ukraine with resources to strengthen its frontlines and work toward a just peace.

"Right now, Putin is engaging our coalition in a contest of wills, counting on us to tire and ultimately retreat. But, through creative policymaking and the unity of the G7, we are sending an unmistakable message of resolve by making Russia increasingly bear the costs of its illegal war, instead of taxpayers in our coalition," said Treasury Secretary Janet L. Yellen.

The funds have been transferred to the World Bank's Facilitation of Resources to Invest in Strengthening Ukraine Financial Intermediary Fund (F.O.R.T.I.S. Ukraine FIF), through which they will be made available to Ukraine.

The aid was approved by the United States on October 23, 2024.