US Treasury Secretary optimistic about $50-billion loan for Ukraine

US Treasury Secretary Janet Yellen expressed optimism about the possibility of the Group of Seven (G7) wealthy democracies finalizing the terms of a $50 billion loan to Ukraine by October.

Speaking to foreign media on the sidelines of a G20 finance leaders meeting in Brazil, Yellen described the ongoing negotiations as "constructive", Caliber.Az reports.

"We've had constructive conversations here. And we're working closely together to try to move this forward," Yellen said. "I think things look good in terms of getting to a place where we can get this done probably by October."

The proposed $50 billion loan, which was agreed in principle by G7 leaders in June, would be funded by proceeds from approximately $300 billion of Russian central bank assets frozen in Western jurisdictions since Russia's invasion of Ukraine in early 2022. While there is no unanimous agreement among the G7 on fully confiscating the $300 billion, the bloc is united in its approach to utilizing the earnings from these frozen assets.

Yellen highlighted that the US has been advocating for assurances from European partners regarding the extended freeze on these assets. "We've been pressing Europe for guarantees that the assets would stay frozen for a lengthy period of time," Yellen noted.

"This is crucial to ensure that the earnings from these assets can service the loan until a peace agreement is reached that secures Ukraine's sovereignty and compensates it for damages caused by Russia's invasion," she added.