‘A Powerful Act of Justice’ – US Taps Frozen Russian Assets to Fund $20 Billion Loan to Ukraine

US officials plan to use billions in interest from frozen Russian assets to continue supporting Ukraine, according to official statements made Tuesday.

The move paves the way for $20 billion of the $50 billion promised in October’s support package to make its way to Kyiv. 

“I am deeply grateful to President Biden, the U.S. Treasury @SecYellen, and the bipartisan support of Congress for the disbursement of $20 billion under the G7 Extraordinary Revenue Acceleration for Ukraine initiative,” Ukrainian President Volodymyr Zelenksy wrote on X in response on Tuesday. 

“This critical support, funded by immobilized Russian assets, will strengthen Ukraine’s defense and help protect our sovereignty and people against unprovoked aggression.”

He continued: “This decision is a powerful act of justice. By utilizing Russia’s assets to support Ukraine, the G7 is holding the aggressor accountable. This sends a clear and resolute message: Russia must pay for its brutal war, Putin’s regime must face the consequences of its violations of international law, war crimes, and assault on democracy.

“Supporting Ukraine is not only about standing with one nation; it’s about ensuring security in Europe and delivering a powerful lesson to any would-be aggressor: accountability for acts of war is inevitable,” he finished.

U.S. Treasury Secretary Janet Yellen emphasized the strategic importance of the economic package, stating, “These funds — paid for by the windfall proceeds earned from Russia's own immobilized assets — will provide Ukraine a critical infusion of support as it defends its country against an unprovoked war of aggression.”

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She went on to say that the G7's loans “will help ensure Ukraine has the resources it needs to sustain emergency services, hospitals and other foundations of its brave resistance,” per AFP.

This financial lifeline comes at a pivotal moment for Ukraine, as the country grapples with the ongoing invasion and faces uncertainty over future US support under the incoming administration of President-elect Donald Trump.

He has repeatedly expressed skepticism about the level of financial assistance provided to Ukraine, raising concerns about the continuity of support.

This approach, part of the Extraordinary Revenue Acceleration (ERA) initiative, allows for immediate assistance to Ukraine while ensuring that “tyrants will be responsible for the damages they cause,” as stated by President Joe Biden.

The G7's collective effort is intended to demonstrate a united front against Russian aggression, according to Yellen.

She said: This action sends “an unmistakable message of resolve by making Russia increasingly bear the costs of its illegal war, instead of taxpayers in our coalition.”