US and G7 reach 99% agreement on $50 billion loan to Ukraine
Photo: Janet Yellen (Getty Images)
The United States is nearly ready to offer $20 billion as part of a broad loan program led by the G7 to assist Ukraine, stated US Treasury Secretary Janet Yellen, according to Bloomberg.
According to her, the G7 countries intend to finalize a $50 billion loan agreement for Ukraine this week, using profits from frozen assets of the Russian central bank.
“We’re 99% there and it’s nailing down just a couple of relatively small things,” Yellen said.
She noted that the funding is expected to arrive in Ukraine by the end of this year.
According to the agency, along with the US contribution, the EU, which has approved a loan of up to $37.9 billion, will ultimately provide at least $20 billion.
According to sources of Bloomberg, the G7 wants the first funds to reach Ukraine by the end of the year, with the bulk of the assistance being provided next year in tranches. The aid will be directed toward meeting various military and economic needs of Ukraine.
Bloomberg reminded that the UK has today allocated a loan of nearly $3 billion to Ukraine, which will be repaid using frozen Russian assets. It is likely that Japan and Canada will provide similar amounts, according to sources who wished to remain anonymous.
Loan for Ukraine
At the end of September, European Commission President Ursula von der Leyen announced a loan of €35 billion for Ukraine, which will be repaid from profits generated by frozen Russian assets. President Volodymyr Zelenskyy stated that these funds would be used for energy and defense. On October 9, the EU Council approved the initiative, and recently the European Parliament took steps toward finalizing this loan.
Additionally, it was recently reported that the UK will provide Ukraine with a loan of £2.26 billion (approximately $2.93 billion). This will be repaid from revenues generated by frozen Russian assets.
