English publication: America will lend 20 billion dollars to Ukraine

According to RCO News Agency, several informed sources announced that the United States is going to provide Ukraine with up to 20 billion dollars as part of the Group of Seven loan, which will then be used by the proceeds from Russian assets that were imposed by the West as part of the sanctions related to Ukraine. Blocked, will be refunded.

Kiev’s backers are trying to speed up negotiations on the loan to provide Ukraine with “needed” funding before the end of the year.

According to the report of Financial Times, the cause of the “rush” of Ukrainian supporters to approve this financial aid is their growing concern about the possibility of Donald Trump, the former US president, winning the presidential elections of this country, and the termination of American support to Ukraine by him.

In an article published on Friday, this English publication noted that the former US president has repeatedly threatened to cut aid to Kyiv if elected.

The United States and other Western allies of Ukraine have frozen about $300 billion in assets belonging to the Russian government after the start of the conflict in Ukraine in 2022. Most of this money, nearly 197 billion euros ($214 billion), is held by the Brussels-based Euroclear clearing house. Fixed-income funds generated 3.4 billion euros in profits through mid-July, according to the Depository Report.

Moscow has condemned the seizure as “theft” and has said that any seizure of the country’s funds is against the law and will undermine global confidence in the Western financial system.

In June, G7 members agreed to lend Kyiv $50 billion to be financed with interest from frozen Russian assets. The United States and the European Union were initially expected to provide $20 billion each, but Brussels later agreed to a three-year extension of the EU’s mandate to block the funding to reassure its allies that the bloc’s sanctions structure would not be lifted. He proposed to freeze Russian assets.

EU lawmakers renew their sanctions every six months by unanimous decision, meaning the restrictions could be broken in any voting period. Hungary opposed this proposal and announced that it intends to postpone this decision until the US presidential election on November 5.

Last week, the European Union approved its aid to the Group of Seven up to 35 billion euros, but the EU will have to provide less aid in the event of Washington’s $20 billion aid. These funds, which will be managed by the World Bank, will be used for various purposes, including defense or humanitarian needs.

However, senior US officials told the Financial Times that Washington will provide the agreed $20 billion in full. This means that even if the European Union fails to convince Hungarian Prime Minister Viktor Orbán to override his veto against the extension of EU sanctions that was previously among the demands of the United States, the United States will offer its assistance. According to 2 sources mentioned by this English publication, the Group of Seven finance ministers will present a statement on the distribution and structure of loans on the sidelines of the meeting of the International Monetary Fund and the World Bank on October 25.

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