US disburses $20 billion Ukraine loan backed by profits from Russian assets

Washington: The United States announced on Tuesday that it has disbursed a $20 billion loan for Ukraine backed by the interest earned on frozen Russia...

Washington: The United States announced on Tuesday that it has disbursed a $20 billion loan for Ukraine backed by the interest earned on frozen Russian assets, as part of a $50 billion G7 support package.

The money forms a significant chunk of the $50 billion in new loans finalized by Group of Seven advanced economies in October, aimed at helping Kyiv prop up the country as it struggles to fight back against Moscow's ongoing invasion.

It also comes as President Joe Biden's administration comes to an end and the future of US support for Kyiv is in doubt.

"These funds -- paid for by the windfall proceeds earned from Russia's own immobilized assets -- will provide Ukraine a critical infusion of support as it defends its country against an unprovoked war of aggression," US Treasury Secretary Janet Yellen said in a statement announcing the decision.

The G7's loans "will help ensure Ukraine has the resources it needs to sustain emergency services, hospitals and other foundations of its brave resistance," Yellen said, adding that Washington's support would help Kyiv "defend its sovereignty and achieve a just peace."