The Biden administration is trying to provide Ukraine with $10 billion in military aid as part of its $20 billion commitment to the country under a $50 billion loan coordinated with the G7 and European Union, the White House National Security Council said on Wednesday.
Group of Seven countries immobilized Russia's sovereign assets in their jurisdictions after Russia invaded Ukraine in February 2022.
As part of the G7 package, President Joe Biden said: "We will provide $20 billion in loans to Ukraine that will be paid back by the interest earned from immobilized Russian sovereign assets. In other words, Ukraine can receive the assistance it needs now, without burdening taxpayers."
The United States plans to disperse $10 billion by December as economic aid, but needs U.S. lawmakers' approval for an additional $10 billion in the form of military assistance, the White House National Security Council said on Wednesday.
"Our ability to do that relies on Congress taking action before mid December," the NSC said.
"Either way, the U.S. will provide $20 billion in support to Ukraine through this effort, whether it's split between economic and military support or provided entirely via economic assistance," officials added.
On Tuesday, U.S. Treasury Secretary Janet Yellen said that G7 and European Union allies were "very close" to finalizing their overall Ukraine loans, which would be backed by the frozen Russian assets.
The income used to repay these loans will be generated from interest eared on the roughly $300 billion in frozen Russian assets held mostly in the European Union.
Speaking at the start of International Monetary Fund and World Bank annual meetings, Yellen said she was confident the Russian sovereign assets will remain immobilized despite the need for EU renewal of the freeze every six months.
Because the EU also committed to lending Ukraine at least $20 billion, the Europeans have "incentives to keep the assets immobilized until we get fully repaid," the NSC said on Wednesday. EU lawmakers on Tuesday approved the bloc's plan to use the frozen Russian assets for the loan.
The NSC said it was possible that the U.S. could end up transferring the entire $20 billion U.S. share of the loan this December to the World Bank Trust Fund, which will manage the funds, adding that the White House will keep talking to Congress in coming weeks.
In the meantime, the U.S. will sign the loan agreements with Ukraine to disperse funds before the year's end, the NSC said, adding that more details are expected in coming days after the G7 finance ministers' meeting concludes.
