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On Tuesday, December 10, the U.S. Department of the Treasury announced the allocation of $20 billion to Ukraine as part of the G7 initiative to utilize frozen Russian assets.
According to the U.S. Treasury’s statement, Secretary Janet Yellen emphasized that the funds come from surplus revenues generated by the immobilized Russian assets.
This allocation is part of the G7’s broader plan to provide Ukraine with €50 billion through Russian assets. The funds are formally offered as loans but will be repaid using a tax on windfall profits generated by frozen Russian assets.
The $20 billion from the U.S. will not be directly transferred to Ukraine. Instead, the funds have been channeled into the World Bank’s “Facilitating Investment for Strengthening Financial Intermediaries in Ukraine” (F.O.R.T.I.S. Ukraine FIF) fund.
“These $50 billion collectively provided by the G7 under this initiative will equip Ukraine with the resources needed to support emergency services, hospitals, and other essentials of its courageous resistance,” Yellen stated.
Under the G7 plan, each member state assumes specific obligations to ensure Ukraine’s access to funds. For instance, the European Union plans to allocate €18.1 billion in macro-financial assistance from frozen Russian assets.
The EU explained that these funds will be disbursed in equal monthly tranches throughout 2025 and may also be used for defense purposes.
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