US Treasury transfers $20B in Ukraine loan funds to World Bank

On Tuesday, the U.S. Treasury announced it had released the $20 billion U.S. portion of a $50 billion loan from the G7 to Ukraine. This loan, backed by frozen Russian sovereign assets, was transferred to a World Bank intermediary fund for economic and financial support to the war-affected nation, News.az reports citing Reuters.

The Treasury said the disbursement makes good on its October commitment to match a $20 billion European Union loan to Ukraine alongside loans from Group of Seven allies Britain, Canada and Japan to help the Eastern European nation fight Russia's invasion.

The disbursement prior to President-elect Donald Trump's inauguration in January is aimed at protecting the funds from being clawed back by his administration. Trump has complained that the U.S. is providing too much aid to Ukraine and said he will end the war quickly, without specifying how.

The $50 billion in credit for 30 years will be serviced with the interest proceeds from some $300 billion in frozen Russian sovereign assets that have been immobilized since Russia invaded in February 2022.

News.Az