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The United States is prepared to contribute up to $20 billion as part of a G7 loan to Ukraine, which is anticipated to be repaid using profits from Russia’s frozen assets, according to three individuals familiar with the discussions. The negotiations for this loan are gaining momentum as Western officials seek to secure funding for Kyiv by the end of the year. This urgency is partly driven by the possibility that if Donald Trump wins the US presidential election in November, American aid to Ukraine could be discontinued.
For several months, G7 countries have been engaged in negotiations regarding the $50 billion loan deal reached in June. Initially, it was expected that Washington’s contribution would be less than originally planned after the European Union was unable to ensure that Russian assets would remain frozen for a minimum of three years. However, on Friday, US officials informed their G7 counterparts that Washington would indeed provide the full original amount of approximately $20 billion. This would be feasible even if the EU did not persuade Hungarian Prime Minister Viktor Orbán to lift his veto on extending EU sanctions—a move required by Washington.
G7 finance ministers were set to convene in Washington on October 25 during the sidelines of the IMF and World Bank meetings, with plans to issue a statement outlining the loan’s distribution and structure, as reported by two sources. One source noted that no final agreement had been reached yet, as the US was still consulting with Congress members and Ukrainian officials about the loan’s repayment process.
The EU recently approved up to €35 billion for its contribution toward the G7 loan. Most of Russia’s frozen central bank assets are located within the EU and are expected to generate around €3 billion in annual profits. If the US provided the full $20 billion, the EU’s contribution would be reduced. French President Emmanuel Macron emphasized the importance of each party making an equal effort.
The remaining funds for the $50 billion loan are expected to be provided by the UK, Canada, and Japan. Nevertheless, Hungary’s veto on the decision to extend the EU’s sanctions against Russia has prevented the EU from meeting Washington’s request for longer-term guarantees regarding the repayment structure. EU leaders, at a recent meeting in Brussels, made a final attempt to persuade Orbán to lift his veto, but the Hungarian leader remained steadfast.
The US Treasury has declined to provide comments on this matter.
