The United States is prepared to offer up to $20 billion as part of a G7 loan to Ukraine, which will be repaid using profits from Russia’s frozen assets, according to sources familiar with the situation. Negotiations regarding the loan are advancing rapidly, as Western officials wish to secure funding for Kyiv before the year ends. This urgency stems from concerns that if Donald Trump wins the US presidential election in November, American aid to Ukraine may be discontinued.
For several months, G7 nations have been engaged in discussions about the framework of the $50 billion loan agreed upon in June. The expectation was that Washington’s contribution would be reduced after the EU did not ensure that Russian assets would remain frozen for a minimum of three years.
However, on Friday, US officials informed their G7 counterparts that the United States is now prepared to provide the entire original amount of approximately $20 billion. This commitment stands even if the EU fails to persuade Hungarian Prime Minister Viktor Orbán to lift his veto on extending EU sanctions, which was a condition set by Washington.
G7 finance ministers, who are scheduled to meet in Washington on October 25 during IMF and World Bank meetings, are anticipated to release a statement regarding the loan’s distribution and structure, as stated by two sources. Nevertheless, one individual involved in the discussions noted that a final agreement has not yet been achieved, and the US continues to consult with Congress and Ukraine on the loan’s repayment terms.
Last week, the EU approved its contribution of up to €35 billion to the G7 loan. Most of Russia’s frozen central bank assets are located within the EU and are expected to generate approximately €3 billion in annual profits. However, the EU’s financial commitment would be reduced if the US provides the full $20 billion.
French President Emmanuel Macron emphasized the importance of all parties contributing their fair share. The UK, Canada, and Japan plan to cover the remaining portion of the $50 billion loan.
The EU’s inability to extend its sanctions regime against Russia due to Hungary’s veto has complicated Washington’s request for longer-term repayment assurances. Attempts by EU leaders to persuade Orbán to drop his veto during a Brussels meeting were unsuccessful.
The US Treasury has declined to comment on the matter.
