Ukrainian Premier claims country has received USD1 billion supported by confiscated Russian assets
Date
12/28/2024 3:00:11 AM
(MENAFN) Ukrainian Prime Minister Denis Shmigal announced on Tuesday that Ukraine has received the first $1 billion installment of a $20 billion US-backed loan, funded by confiscated Russian assets. This payment follows a recent $20 billion transfer from the US Treasury Department to a World bank fund, which is set to provide financial support to Ukraine. The European Union and G7 countries, including Britain, Japan, and Canada, have pledged an additional $30 billion, bringing the total to $50 billion, which will be repaid over 40 years.
The loan is backed by interest generated from frozen Russian sovereign assets, estimated at $300 billion, which were seized by the US and its allies after the Ukraine conflict escalated in February 2022. Shmigal expressed hope that all Russian sovereign assets would be confiscated and used for Ukraine’s reconstruction.
In a separate announcement, Shmigal confirmed that Ukraine had also received $1 billion from Japan and the UK via the same World Bank program. Since 2022, Ukraine’s government, military, and public services have relied heavily on foreign aid, as the ongoing war has strained the nation’s finances.
However, the IMF has warned that the seizure of Russian assets could erode global confidence in the US and its allies. The Kremlin has condemned the move, calling it "theft" and signaling plans to take legal action against those involved.
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