US Treasury Secretary Janet Yellen stated on Tuesday that the G7 countries and EU allies are “very close” to finalizing a $50 billion loan for Ukraine, with the US contribution estimated at around $20 billion. She emphasized that the American contribution will come from revenues generated from frozen Russian assets, not from American taxpayers.
Yellen made the remarks at a press conference at the start of the annual meetings of the International Monetary Fund and the World Bank, expressing high confidence that the frozen Russian assets, primarily confiscated in Europe, will remain frozen, despite the ongoing need for the EU to renew this decision every six months.
“We are very close to finalizing the US portion of this $50 billion loan package,” Yellen said when asked about the final negotiations regarding the loan intended for Ukraine by the end of this year.
Republican presidential candidate Donald Trump has vowed to pull the country out of the Russia-Ukraine war, highlighting the G7 allies’ plans to finalize the loan issue before the American elections on November 5.
Earlier on Tuesday, EU lawmakers approved the bloc’s plan to use frozen Russian assets for a loan of up to $38 billion.
Yellen indicated that the US is prepared to contribute around $20 billion in loan form, stating that “there is nothing significant left to discuss” in this process.
The US had pressured the EU for stronger guarantees that the funds would remain frozen for an extended period, even in the event of a ceasefire ending the fighting in Ukraine. This would reduce the risk of American taxpayers being responsible for repaying the loan.
Yellen said the US is willing to accept that the EU keeps the assets frozen for a long time, especially given the current flow of the war.
“I think those guarantees are in place. We feel confident that this is a secure loan that will be repaid from Russian assets, from Russia, and not from American taxpayers,” she stated.
Next week, the United States will announce new strong sanctions aimed at curbing Russia’s war machinery in Ukraine, including “intermediaries in third countries that are supplying Russia with critical military equipment.”
She did not specify who would be subject to the sanctions when asked if the US measures would include secondary sanctions against financial institutions.
A presidential executive order from last year that allowed banks to be blocked from accessing the dollar if they facilitated transactions with sanctioned Russian entities has already had a significant impact on curbing such activities, Yellen noted.
“Therefore, further actions of this nature also remain on our radar,” she added.
