- The U.S. will provide Ukraine with $15 billion in additional aid funding, sourced from frozen Russian central bank assets, as part of a larger $20 billion contribution under the G7's $50 billion loan framework for Ukraine.
- The G7 nations pledged $50 billion for Ukraine back in June 2022 which will be financed using future revenues from the approximately $300 billion worth of frozen Russian assets held outside of Moscow's reach as collateral.
- Ukraine has already received around $1 billion of this loan.
- Russia has condemned the asset seizures as "theft," and warned of legal retaliation, with Russia preparing to use income from frozen Western assets held by Moscow in response.
The United States will provide Ukraine with $15 billion in additional funding leveraged from frozen Russian central bank assets.
This is according to Ukrainian Prime Minister Denys Shmyhal, who announced the plan on Monday, Dec. 30. The move is part of a broader $20 billion U.S. contribution to Ukrainian aid funding under the Group of Seven's (G7) $50 billion loan framework to Ukraine, secured with future revenues from seized Russian assets held by banks outside of Moscow's reach. (Related: Antony Blinken: U.S. has provided Ukraine with over $100 billion in aid since 2022.)
The G7 – comprising the U.S., Canada, Japan, the U.K., France, Germany and Italy – initially pledged the $50 billion loan in June 2022, using profits from frozen Russian assets as collateral.
Of the estimated $300 billion in Russian assets immobilized globally, around $213 billion is held in the Brussels, Belgium-based clearing house Euroclear. The firm froze the assets under its control in late February 2022, shortly after the European Union imposed sanctions on Russia in response to the escalation of the conflict with Kyiv and the beginning of its special military operation in Ukraine.
The frozen funds have already generated billions in interest alone, and Euroclear has already transferred around €1.55 billion ($1.6 billion) to Ukraine back in July.
The Kremlin has strongly criticized the asset seizures, with spokesperson Dmitry Peskov condemning the measures as "theft" and warning of potential legal retaliation. Peskov's remarks came in response to Shmyhal’s announcement that the U.S. had already transferred the first $1 billion installment from the frozen Russian central bank funds to Ukraine.
Russian Finance Minister Anton Siluanov has also indicated plans to mirror the West's actions, using income from frozen Western assets in Russia.
"We have also frozen the resources of Western investors, Western financial market participants, and companies. The income from these assets will also be used," Siluanov said.
The decision to use frozen Russian assets has sparked debate among G7 nations, with European members such as Germany, France and Italy raising concerns over financial market stability and the legal implications of such actions. The International Monetary Fund has warned that seizing these assets without robust legal frameworks could erode global trust in the Western financial system.
Ukraine already receiving loan money leveraged by frozen Russian assets
The $15 billion in U.S. funding is part of a larger $20 billion contribution to Ukraine under the G7 initiative aimed at supporting Kyiv's social and humanitarian needs. Shmyhal emphasized that the funds would be used for these purposes, expressing gratitude to the U.S. and the World Bank for their support.
"We thank the U.S. and the World Bank for implementing and supporting this initiative, which forces Russia to pay for its aggression against Ukraine," he said in a statement.
Earlier last month, the prime minister announced that Ukraine had already begun receiving U.S. funds under the loan program, following the delivery of $1 billion from the U.S. in profits from frozen Russian assets.
Watch this video discussing Ukraine already receiving the first tranche of its loan leveraged by frozen Russian assets.
This video is from the channel The Prisoner on Brighteon.com.
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