Conflict between Russia and Ukraine
Conflict between Russia and Ukraine
Conflict between Russia and Ukraine
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The United States has provided Ukraine with a $20 billion loan backed by Russian assets, guaranteeing economic assistance for the country even after Donald J. Trump becomes president.
Written by Alan Rappeport
Writing from the nation
On Tuesday, the Biden administration sent $20 billion to Ukraine in the form of a loan, which will serve as a crucial financial support. This loan will be paid back using the interest generated from Russia’s central bank assets that have been frozen.
Ukraine is currently experiencing a time of great uncertainty as President-elect Donald J. Trump is set to take office soon and Russia’s ongoing war shows no signs of stopping. This situation coincides with the transfer of funds.
It is unlikely that President Trump and Republicans in Congress will maintain the same level of economic and military support for Ukraine as the previous Democratic administration did. However, Ukraine continues to face conflict and relies heavily on international aid to sustain its economy.
Earlier this year, the Group of 7 nations agreed on a $50 billion loan, with $20 billion being a portion of that amount. Following Russia’s invasion of Ukraine in early 2022, the United States and the European Union imposed sanctions to freeze Russia’s central bank assets, primarily located in Europe.
Janet L. Yellen, the Treasury Secretary, oversaw a $20 billion transfer from the Treasury Department to the World Bank for distribution to Ukraine. This transfer was described by Yellen as one of the most significant tasks she had worked on during her tenure in the position, as reported by someone present at the meeting in her conference room.
Following lengthy discussions on how to use the money to assist Ukraine, officials decided to use the interest earned from the assets to support a loan. This strategy makes Russia responsible for covering the costs of the damage in Ukraine, enabling the United States and Europe to offer aid without increasing the financial strain on their taxpayers.
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