On December 10, the US Treasury Department officially announced the allocation of $20 billion to Ukraine within the framework of the Group of Seven initiative.
Points of attention
- The financial assistance is formally provided as a loan, but will be repaid from frozen Russian assets.
- Ukraine will receive funds through the World Bank fund.
- As part of the large-scale financial support plan for Ukraine, the EU will provide Kyiv with EUR 18.1 billion.
New large-scale aid from the USA — what is known
The head of the US Treasury Department, Janet Yellen, has already made a statement on this matter.
According to her, the funds for aid to Ukraine were obtained at the expense of surplus revenues from the use of Russia's immobilized assets.
What is important to understand is that this is part of the G7 plan to provide Ukraine with 50 billion euros at the expense of Russian assets.
The money will be given formally as a loan, but it will be repaid through a tax on excess profits received from frozen Russian assets.
What is the nuance of this financial assistance
The US Ministry of Finance draws attention to the fact that Ukraine will not receive $20 billion directly.
They have already been transferred to the World Bank fund "Helping to attract resources for investments in strengthening financial intermediation in Ukraine" (FORTIS Ukraine FIF).
The American authorities believe that the $50 billion that the Group of Seven is collectively providing as part of this initiative will help provide Ukraine with the resources it needs to support emergency services, hospitals and other foundations of its courageous resistance.
As already mentioned earlier, the new plan of the "Group of Seven" provides that each member country undertakes strict obligations to provide credit for Ukraine.
The European Union, for example, will provide macro-financial assistance for 18.1 billion euros at the expense of frozen rockets.
