On Tuesday, the US announced that it disbursed a $20 billion loan for Ukraine that will be paid back using interest earned on frozen Russian Central Bank assets, a step that marks an escalation of the Western economic war against Russia.
The $20 billion is part of a total $50 billion loan being provided by the Group of Seven (G7) nations. The entire loan will be paid back using the Russian assets.
“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,” US Treasury Secretary Janet Yellen said in a statement.
“The $50 billion collectively being provided by the G7 through this initiative will help ensure Ukraine has the resources it needs to sustain emergency services, hospitals, and other foundations of its brave resistance,” she added.
The Biden administration has been working to escalate its support for the Ukraine proxy war as much as possible before President-elect Donald Trump is inaugurated on January 20. Providing Ukraine with aid using Russian assets will make a peace deal more difficult since Moscow will want reimbursement for the funds.
In recent weeks, President Biden has taken several steps to escalate the proxy war, including the authorization of long-range Ukrainian strikes inside Russian territory and the provision of widely-banned anti-personnel mines. On Saturday, the administration announced a new weapons package worth nearly $1 billion.
