On Tuesday, December 10, 2024, the U.S. Treasury Department announced a 20 billion USD loan to Ukraine, which will be financed from frozen Russian assets. This loan is part of the G7 countries’ ERA (Extraordinary Revenue Acceleration) initiative, which has a total loan value of 50 billion USD. Additional loans have already been offered by the United Kingdom, Canada, and Japan.
U.S. President Joe Biden during a meeting with Ukrainian President Volodymyr Zelensky in Kyiv, February 20, 2023 / Photo: Office of the President of Ukraine
“These funds – paid for by the windfall proceeds earned from Russia’s own immobilized assets – will provide Ukraine a critical infusion of support as it defends its country against an unprovoked war of aggression,” said Secretary of the Treasury Janet L. Yellen.
“The $50 billion collectively being provided by the G7 through this initiative will help ensure Ukraine has the resources it needs to sustain emergency services, hospitals, and other foundations of its brave resistance. Together with America’s security assistance to Ukraine and the steps we will continue to take to decisively tighten sanctions on Russia, this action will further position Ukraine to defend its sovereignty and achieve 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.” she added.
After Russia’s full-scale invasion of Ukraine, G7 members decided to freeze Russian assets within their jurisdictions and pledged that these assets would remain frozen until Russia ends its aggression and pays for the damages it has inflicted on Ukraine—paving the way for loans under the G7 ERA initiative.
Yesterday, the United States fulfilled its October commitment to provide Ukraine with 20 billion USD under this initiative, transferring the funds to the World Bank’s Financial Intermediary Fund for Strengthening Ukraine (F.O.R.T.I.S. Ukraine FIF), through which they will be made available to Ukraine. Through the ERA initiative, the G7 has utilized unexpected revenues from frozen Russian assets, channeling them to support Ukraine.
The ongoing support for Ukraine in the face of Russian aggression demonstrates the determination of the United States and its partners to defend democracy against aggressive authoritarian regimes, protect the global economy, and strengthen collective security. Supporting Ukraine is also crucial to the United States’ national interest. Ukraine’s collapse would invite further aggression from Putin and jeopardize the security of NATO allies in Europe, whom the U.S. is committed to defend under the North Atlantic Treaty.
Today, @USTreasury is announcing the disbursement of $20 billion to benefit Ukraine as part of the $50 billion G7 Extraordinary Revenue Acceleration Loans Initiative. These funds are paid for by windfall proceeds earned from Russia’s own immobilized assets.https://t.co/stgSW88C9y
— Secretary Janet Yellen (@SecYellen) December 10, 2024