Biden seeks to forgive nearly $5 billion in Ukraine's loan
Photo: US President Joe Biden (Getty Images)
US President Joe Biden has submitted a proposal to Congress to forgive half of Ukraine's debt related to economic assistance, amounting to approximately $4.65 billion, said State Department spokesman Matthew Miller.
In the spring, Congress approved the Additional Ukraine Supplemental Appropriations Act, which allocated about $61 billion for Ukraine's security in April 2024. The legislation specifies that economic aid - around $10 billion - was provided to Ukraine as a conditional loan, not a grant.
However, the document submitted by Biden grants him the authority to forgive 50% of this loan. The document also notes that the remaining 50% could be forgiven by the next US president after January 1, 2026.
"We have taken the step that was outlined in the law to cancel those loans," Miller said.
He noted that after the White House informs Congress about this decision, lawmakers may pass a resolution of disapproval. However, in his opinion, this will not happen.
"I would be surprised if Congress took this step given the overwhelming bipartisan support in Congress for providing assistance, but we will follow the law," the State Department spokesperson said.
US assistance to Ukraine
At the beginning of this year, there was a prolonged debate in the US Congress over the approval of a new aid package for Ukraine. Biden requested additional funds in the fall of 2023, but Republicans blocked the decision. In February, the Senate approved a joint bill for Ukraine, Israel, and Taiwan, but Speaker of the House Mike Johnson prevented it from being put to a vote.
In April, Johnson proposed four separate bills, which were eventually supported by both chambers of Congress. Over $60 billion was allocated for Ukraine, including military and economic support.
For more details on how these funds will be spent, read the material by RBC-Ukraine.
