G7 agrees on $50 billion aid plan for Ukraine, funded by frozen Russian assets
U.S. Treasury Secretary Janet Yellen has announced that the United States is planning to provide Ukraine with a loan of approximately $20 billion. This funding is set to be part of a broader aid package agreed upon by the Group of Seven (G7) nations. The official revealed this during a press conference in Washington on October 22, at the opening of the annual meeting of the International Monetary Fund (IMF) and the World Bank, as reported by DW.
According to Yellen, these funds will be part of a total aid package worth $50 billion, expected to be compensated by interest income from frozen Russian assets. She added that G7 governments are finalizing the arrangements for the deal.
"We're 99% ready, just ironing out a few minor details," she explained. Yellen highlighted that this financial aid will not come from American taxpayers. "In effect, Russia is paying for Ukraine's support," she emphasized. A final agreement is expected by the end of the week.
The G7 has jointly frozen about $280 billion in Russian central bank assets, with the majority of these funds in Europe, projected to yield between $3 and $5 billion annually.
Bloomberg reports that G7 nations expect the first tranches of this aid to reach Ukraine by the end of 2024, with subsequent installments envisioned for the following year, aimed at the country's military and economic needs.
This initiative is also designed to provide stable financial support for Ukraine amidst potential shifts in U.S. foreign policy, particularly if Donald Trump, who is critical of financial aid to Kyiv, wins the presidential election.
Moreover, the European Parliament previously approved a €35 billion allocation for Ukraine from Russian assets. Similarly, the UK announced plans to allocate nearly $3 billion from Russian assets to support Kyiv.