United States allocates US$20 billion to Ukraine using frozen Russian assets
On 10 December, the US Department of the Treasury announced the allocation of $20 billion for Ukraine as part of the G7 initiative to utilise frozen Russian assets.
Source: European Pravda, citing a statement from the US Department of the Treasury
Details: US Treasury Secretary Janet Yellen noted that the funds for Ukraine's support are sourced from surplus revenues generated through the use of immobilised Russian assets.
This is part of the G7 plan to provide Ukraine with €50 billion using Russian assets. The funds will formally be provided as loans but will be repaid through a tax on excess profits derived from frozen Russian assets.
The funds will not be transferred directly to Ukraine. Instead, they were allocated to the World Bank’s Facilitation of Resources to Invest in Strengthening Ukraine Financial Intermediary Fund (F.O.R.T.I.S. Ukraine FIF).
Quote: "The US$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."
Under the G7 plan, each member state takes on commitments to secure loans for Ukraine. For instance, the European Union will provide €18.1 billion in macro-financial assistance using frozen Russian assets.
The EU clarified that these funds will be disbursed in equal monthly tranches throughout 2025 and can also be used for defence purposes.
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