US set to provide $20 billion in G7 loan to Ukraine

The United States is prepared to allocate up to $20 billion (40%) of a G7 loan to Ukraine, which will be repaid using profits from frozen Russian assets.

Negotiations for this loan are accelerating, as Western officials aim to provide financial assistance to Kyiv before the year’s end, recognizing that support could diminish if Donald Trump wins the US election in November, Caliber.Az reports via foreign media.

The G7 members have been deliberating the loan's structure for several months. Initially, it was anticipated that the US contribution would be less than $20 billion; however, Washington now intends to provide the full amount, even if the EU fails to persuade Hungarian Prime Minister Viktor Orban to lift his veto on extending anti-Russian sanctions, which the US considers a prerequisite for aid.

While a final agreement is still pending, consultations with Congress and Ukrainian officials regarding the loan's repayment are ongoing, according to one source. Two additional sources indicated that G7 finance ministers are expected to announce details about the loan’s structure during a meeting in Washington on October 25.

Recently, the EU also agreed to provide Kyiv with a €35 billion loan. Most of the frozen assets belonging to the Central Bank of Russia are held in G7 countries and are projected to generate approximately €3 billion in annual profits. However, if the US commits the entire $20 billion, the EU's share would be reduced. Additionally, Britain, Canada, and Japan are expected to contribute funds to Ukraine as part of this loan arrangement.

On June 14, G7 countries issued a joint statement following their summit in Italy, announcing plans to provide Ukraine with a $50 billion loan, to be repaid through revenues generated from frozen Russian assets. The statement clarified that these assets will remain immobilized until hostilities cease, after which the G7 intends to secure an agreement for their unfreezing that includes a reparations clause sufficient to cover remaining debts.

By Tamilla Hasanova