Politics

US Treasury Turns Frozen Russian Assets Into $20 Billion Loan For Ukraine

(DoD photo by U.S. Air Force Tech. Sgt. Jack Sanders)

The U.S. Treasury Department on Tuesday executed the transfer of its $20 billion share of a massive $50 billion G7 loan to Ukraine.

The funds, routed through a World Bank intermediary called the Facilitation of Resources to Invest in Strengthening Ukraine Financial Intermediary Fund (FORTIS Ukraine FIF), aim to bolster Ukraine’s economic stability amid its ongoing conflict with Russia, according to Reuters. This move ensures the full amount is dedicated to non-military purposes and aligns with a prior commitment made in October to parallel the European Union’s hefty $20 billion pledge.

The comprehensive package includes contributions from Britain, Canada and Japan, utilizing frozen Russian sovereign assets to sustain Ukraine’s defense against Russia’s aggressive incursion that commenced in February 2022, AP reported. Treasury Secretary Janet Yellen spearheaded the $20 billion wire transfer, emphasizing that the funds, drawn from the proceeds of Russia’s immobilized assets, are vital for Ukraine’s resilience.

🚨TUCKER🚨

Ep. 45 : How could Washington possibly send tens of billions more to sleazy oligarchs in Ukraine now that the whole enterprise has been revealed as a fruitless, corrupt and incredibly destructive disaster?
Because that’s what they always do.

pic.twitter.com/ZiLTTkvalP

— Daily Caller (@DailyCaller) December 5, 2023

“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,” Yellen said in a statement. However, the timing of this disbursement is pivotal as it precedes the inauguration of President-elect Donald Trump, who has vocally criticized the scale of U.S. aid to Ukraine and also proposed a resolution to the conflict.

During Trump’s presidential campaign, it was revealed that he’s considering a strategy to suspend U.S. aid to Kyiv unless Ukraine initiates peace negotiations with Moscow. This conditional policy could either cut weapons aid if Ukraine refuses to negotiate or increase support if Russia declines to participate in talks, according to one of his advisers.

Kremlin spokesman Dmitry Peskov told Reuters that any ceasefire deal proposed by Trump must reflect the actual conditions on the ground, emphasizing that the Kremlin is open to negotiations. In June, Russian President Vladimir Putin proposed a ceasefire that requires Ukraine to cede large areas of territory and demilitarize its forces.

Since the onset of Ukraine’s conflict with Russia in 2022, the U.S. has supplied more than $175 billion in aid, including $70 billion designated for military purposes, yet Ukraine continues to face difficulties in holding its defensive lines due to shortages of troops and ammunition. Trump has repeatedly said he could resolve the conflict in “24 hours.”

(Featured Image Media Credit: DoD photo by U.S. Air Force Tech. Sgt. Jack Sanders)