Ukraine will receive a loan of $20 billion from the United States, which will be repaid from revenues generated by frozen Russian assets. This was reported by the U.S. Department of the Treasury.
It is noted that the funds are allocated under the G7 initiative called Extraordinary Revenue Acceleration (ERA), which aims to assist Ukraine with a total of $50 billion. In addition to the U.S., contributions are being made by EU countries, the United Kingdom, Canada, and Japan.
"These funds, paid from unexpected revenues obtained from Russia's own frozen assets, will provide critical support to Ukraine as it defends its country against an unprovoked aggressive war," said Treasury Secretary Janet L. Yellen.
According to her, the $50 billion collectively provided by the G7 countries will enable Ukraine to finance "emergency services, hospitals, and other foundations of its brave resistance."
The $20 billion from the U.S. will be transferred to the Fund for Investment Support in Strengthening Financial Intermediation in Ukraine (F.O.R.T.I.S. Ukraine FIF) of the World Bank, through which they will be made available to Ukraine.
$50 Billion Loan for Ukraine from G7
As reported by UNIAN, in October, the G7 countries reached a final agreement to provide Ukraine with a $50 billion loan funded by profits from frozen assets of the Russian central bank. The idea of implementing this mechanism was initially approved back in June.
Although the funds are formally provided as a loan, the interest and principal amount will not be repaid by Ukraine, but from the revenues generated by the frozen Russian assets in Western countries.
The funds will be provided to Ukraine in the form of a series of bilateral loans, starting from December 1 of this year until the end of 2027: "in portions that will reflect Ukraine's urgent financing needs."
According to the plan, the U.S. and the EU were expected to provide $20 billion each, with the remaining $10 billion coming from Canada, the United Kingdom, and Japan.