U.S. announces $20 billion loan to Ukraine, funded by frozen Russian assets

The U.S. Treasury Department has announced a $20 billion loan to Ukraine, to be repaid using interest from frozen Russian assets.

“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,” Treasury Secretary Janet Yellen said in a statement.

The U.S. loan is part of a $50 billion aid package agreed upon by G7 nations at their June summit. In October, the European Council approved a loan of up to 35 billion euros ($36.7 billion) for Ukraine, also backed by revenues from frozen Russian assets.

Since Russia’s full-scale invasion of Ukraine in 2022, Western nations have frozen more than $300 billion in Russian sovereign assets, most of which are held in Europe. Earlier this year, the European Union began transferring profits generated from these assets to Ukraine.