U.S. President-elect Donald Trump may try to revise the terms or cancel a USD 20 billion loan to Ukraine, which will be repaid with proceeds from frozen assets of the aggressor country russia.
The American newspaper The New York Times reported this on Wednesday, December 11.
The publication notes that the administration of current U.S. President Joe Biden has already transferred USD 20 billion to Ukraine on Tuesday, which has become an "economic lifeline" for the country. The United States and Europe have also considered the option of providing the loan in tranches to guarantee financial assistance to Ukraine even if Trump wins.
"In theory, Mr. Trump could try to unravel the loan by reversing the sanctions that keep Russia’s central bank assets frozen. However, Republicans would probably oppose such a move and it would not affect Europe’s portion of the loan," the material says.
U.S. Treasury Secretary Janet L. Yellen said on Dec. 12 that the loan should send a message to russian president vladimir putin that Western countries are not giving up on Ukraine.
“Right now, Putin is engaging our coalition in a contest of wills, counting on us to tire and ultimately retreat. But, through creative policymaking and the unity of the G7, we are sending an unmistakable message of resolve by making Russia increasingly bear the costs of its illegal war, instead of taxpayers in our coalition,” Yellen said.
The USD 20 billion is part of a USD 50 billion loan that the G7 countries developed and agreed in early 2024. The United States and the European Union imposed sanctions after russia’s invasion of Ukraine to freeze the assets of russia’s central bank, most of which are held in Europe, the NYT reported.
As the Ukrainian News agency earlier reported, Reuters informed that Trump may use USD 300 billion in frozen russian assets as a bargaining chip in talks with russian dictator vladimir putin.
On October 22, the Japanese media corporation Nikkei reported, citing its own sources, that the G7 countries will not unfreeze russian assets after the war is over.
On June 13, the G7 countries agreed to allocate USD 50 billion to Ukraine from frozen russian assets.
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