US disburses $20b to Ukraine as part of G7 loan, using frozen Russian assets

The $50bn credit, serviced by interest from $300bn in frozen Russian assets, will last for 30 years

The US Treasury on Tuesday said it disbursed the $20 billion US portion of a $50 billion G7 loan to Ukraine backed by frozen sovereign Russian assets to a World Bank intermediary fund for economic and financial aid to the war-torn country.

The Treasury said the disbursement makes good on its October commitment to match a $20 billion European Union loan to Ukraine alongside loans from Group of Seven allies Britain, Canada and Japan to help the Eastern European nation fight Russia’s invasion.

The disbursement prior to President-elect Donald Trump’s inauguration in January is aimed at protecting the funds from being clawed back by his administration.

Trump has complained that the US is providing too much aid to Ukraine and said he will end the war quickly, without specifying how.

The $50 billion in credit for 30 years will be serviced with the interest proceeds from some $300 billion in frozen Russian sovereign assets that have been immobilized since Russia invaded in February 2022.