The United States will provide $20 billion in loans to Ukraine, with the money to be backed by interest earned from Russian sovereign assets that have been immobilized after its invasion, President Joe Biden announced Wednesday.
The decision is part of an effort Biden said he led this summer to bring the nations of the G7 together to commit $50 billion in Extraordinary Revenue Acceleration loans, with the provision they would be backed by Russian assets.
"In other words, Ukraine can receive the assistance it needs now, without burdening taxpayers," Biden said in a statement from the White House. "These loans will support the people of Ukraine as they defend and rebuild their country. And our efforts make it clear: Tyrants will be responsible for the damages they cause."
Biden's news comes as the Council of the European Union announced that it has also approved a macro-financial assistance loan to Ukraine of up to 35 billion Euros, or approximately $38 billion in U.S. dollars, reports Interfax, quoting a Hungarian presidency source in the council.
"After Russia's brutal invasion of Ukraine, the G7 took bold action to immobilize Russia's sovereign assets in our jurisdictions, and committed that these assets will remain immobilized until Russia ends its aggression and pays for the damage it has caused to Ukraine — paving the way for Extraordinary Revenue Acceleration loans," Biden said in his announcement.
Biden added that Russia "will not prevail" in its war against Ukraine.
"The people of Ukraine will prevail," he added. "This is another reminder to Vladimir Putin that the world has rallied behind Ukraine—and the United States and our G7 partners will continue to stand with them every step of the way."
"Following the successful conclusion of a written procedure, the council today adopted a financial assistance package to Ukraine, including an exceptional macro-financial assistance (MFA) loan of up to 35 billion euros and a loan cooperation mechanism that will support Ukraine in repaying loans for up to 45 billion euros provided by the EU and G7 partners," the announcement said.
Like with Biden's announcement, the loan is being provided to Ukraine after approval from the European Parliament and will be used through revenue from frozen Russian assets.
It, like the U.S. money, is part of the G7 state approval in June to grant Ukraine with up to $50 billion.
The funds will be allocated through late 2025, said the European Union.
The ruling is to enter into effect the next day after it is published in the EU Official Journal.
Sandy Fitzgerald ✉
Sandy Fitzgerald has more than three decades in journalism and serves as a general assignment writer for Newsmax covering news, media, and politics.
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