United States Provides $20 Billion to Ukraine Using Profits from Seized Russian Assets

The United States has supplied $20 billion (£15 billion) to Ukraine, financed by the earnings derived from confiscated Russian assets. This economic assistance represents a significant portion of a $50 billion (£39 billion) package that G7 member nations agreed upon and announced in June. US Treasury Secretary Janet Yellen stated that funding this aid through frozen assets ensures Russia “bear the costs of its illegal war, instead of taxpayers.” This development occurs mere weeks before US President Joe Biden is succeeded by Donald Trump, who has expressed a desire to promptly conclude the war in Ukraine upon assuming office. The president-elect has characterized financial aid to Kyiv as a drain on US resources, raising doubts about the continuation of such support under the forthcoming administration. On Tuesday, the US Treasury confirmed it had transferred the $20 billion to a World Bank fund, from which Ukraine will be able to access the money. Funds managed by the World Bank are prohibited from being used for military purposes. The Reuters news agency reported that the administration had initially intended to allocate half of these funds to military aid, a move that would have required approval from Congress. This follows months of delays, marked by political disagreements in the House of Representatives, before $61 billion of military aid for Ukraine was finally approved in April. In a statement released on Tuesday, Yellen affirmed that the $20 billion would provide the country with “a critical infusion of support” as it defends itself “against an unprovoked war of aggression.” This action follows several months of discussions among the US and its allies, including the EU, concerning the utilization of approximately $325 billion (£276 billion) worth of assets that have been frozen since Russia’s full-scale invasion of Ukraine commenced in 2022. Last October, the G7 agreed to use the interest generated by these assets – estimated at around $3 billion (£2.4 billion) annually – to fund $50 billion in credit over a 30-year period. Payments were anticipated to begin by the end of the year. The EU has similarly committed more than €18 billion (£15 billion), funded through the same method. Yellen stated that the $50 billion package is designed to ensure Ukraine possesses “the resources it needs to sustain emergency services, hospitals, and other foundations of its brave resistance.” This aid arrives at a critical juncture for Ukrainian President Volodymyr Zelensky’s forces, who have recently been ceding territory. Moscow has been retaking ground in eastern Ukraine and in Russia’s Kursk – where Ukrainian forces launched an offensive over the summer – while Ukrainian troops have depicted a dismal situation on the war’s frontlines. Copyright 2024 BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking.