The United States has transferred $20 billion in economic aid to Ukraine, using funds generated from Russian assets that were seized following Moscow’s invasion. The transfer is part of a broader $50 billion package agreed upon by the G7 nations in June, aimed at supporting Ukraine’s war effort and recovery.
U.S. Treasury Secretary Janet Yellen emphasized that funding aid through frozen Russian assets shifts the financial burden of Russia’s “illegal war” from taxpayers to Russia itself. “Russia must bear the costs of its aggression,” Yellen stated.
The funding comes as the U.S. approaches a pivotal moment, with President Joe Biden set to be replaced by President-elect Donald Trump, who has indicated he would seek to end the conflict in Ukraine quickly upon taking office. Trump has also raised concerns about the continued financial support to Ukraine, which he views as a strain on U.S. resources.
The $20 billion has been deposited into a World Bank fund, where it will be available for Ukraine to draw from for various humanitarian and infrastructure needs. Notably, money allocated by the World Bank cannot be used for military purposes.
While the U.S. administration had originally hoped to dedicate part of the funds to military aid, Congressional approval would have been required. Delays in approval led to a months-long standoff in the House of Representatives, during which $61 billion in military assistance for Ukraine was eventually approved in April.
The $20 billion transfer follows extensive discussions between the U.S. and its allies, including the European Union, on how to use the approximately $325 billion in frozen Russian assets. In October, the G7 agreed to use the interest generated by these assets—around $3 billion annually—to provide $50 billion in credit to Ukraine over the next 30 years. The first payments are expected by the end of the year.
The European Union has also committed more than €18 billion (£15bn) in similar funding sourced from Russian assets.
Yellen underscored that this support is crucial as Ukraine continues to defend itself against Russia’s unprovoked invasion. “The infusion of support is critical for Ukraine as it sustains its emergency services, hospitals, and other foundations of its brave resistance,” she said.
The timing of the aid is significant, as Ukrainian forces are facing increasing challenges on the frontlines, particularly in the eastern regions of the country, where Russian forces have made significant advances. Ukrainian President Volodymyr Zelensky’s forces have recently been ceding territory, particularly in the east and the Kursk region, which was the target of a Ukrainian offensive earlier this summer.
As the war continues, the U.S. and its allies remain committed to supporting Ukraine’s defense, even as political pressures mount within the U.S. on the future of foreign aid.
