Earlier this week, the Biden administration announced a $20 billion loan to Ukraine, funded by proceeds from frozen Russian assets. This decision comes just weeks before President-elect Donald Trump, who has expressed intentions to end financial aid to Ukraine and pursue an end to the conflict, assumes office.
According to reports, the loan is part of a broader $50 billion support package from the G7, arriving a little over a month before President Joe Biden’s departure from the White House.
The loan comes at a crucial time for Kyiv, as President-elect Donald Trump has signaled plans to push for a settlement rather than funding what he calls an “endless war.” Trump recently suggested he may reduce aid to Ukraine. Treasury Secretary Janet Yellen emphasized the importance of the funds, sourced from frozen Russian assets, to support Ukraine in its fight against unprovoked aggression.
The G7 loans will support Ukraine’s emergency services, hospitals, and defense, Treasury Secretary Janet Yellen said. The announcement follows a Paris meeting between Donald Trump, Ukrainian President Volodymyr Zelenskyy, and French President Emmanuel Macron. Washington has already transferred $20 billion to the World Bank to fund Ukraine, but the incoming administration plans to prioritize ending the nearly two-year conflict.
Trump’s stance against further aid to Ukraine gained traction during his campaign, resonating with Americans facing domestic challenges like open borders and insufficient disaster relief.
Before the Biden administration’s loan announcement, House Speaker Mike Johnson stated that no new Ukraine funding should be approved before Trump’s inauguration, as future decisions should rest with the incoming president.
Johnson argued that Trump’s election victory already shifts the dynamics of the Russia-Ukraine conflict, emphasizing, “It’s not Biden’s place to decide now.”
The Biden administration had requested $8 billion in security assistance and an additional $16 billion from the Department of Defense to support Ukraine. Meanwhile, Trump has vowed to end the war, stating in September his intent to broker peace even before taking office to stop the widespread destruction and loss of life.
