Yellen- The United States and its allies are -about to finalize- a $50 billion loan plan for Ukraine

On October 22, U.S. Treasury Secretary Janet Yellen announced that the Group of Seven (G7) and the European Union are “very close” to finalizing a $50 billion loan plan for Ukraine, with the U.S. expected to contribute around $20 billion.

During a press conference held at the start of the International Monetary Fund (IMF) and World Bank Annual Meetings, Yellen shared that the U.S. and European partners are on the verge of finalizing a plan to provide Ukraine with this significant loan by the end of the year, supported by frozen Russian central bank assets.

“We’ve completed 99% of the work; only a few relatively small details remain to be finalized. We’re very close to achieving our goal, and there’s nothing major left to resolve,” Yellen stated.

On the same day, the European Parliament voted in favor of a proposal that would use the interest and returns from frozen Russian central bank assets as collateral for a loan of up to €35 billion to Ukraine.

Following the onset of the Ukraine crisis, the EU, Canada, the U.S., and Japan collectively froze approximately $300 billion in Russian assets. This includes about $5 to $6 billion in the U.S., while the majority is held in Europe, primarily at the Brussels-based European Securities Clearing Bank.

In June 2024, the G7 reached a consensus on providing around $50 billion to Ukraine, backed by the interest from the frozen Russian assets, although specific details are still under discussion. It is anticipated that the G7 could finalize the agreement to loan Ukraine $50 billion as early as this week.