The U.S. and its G7 allies are nearing completion of a $50 billion loan program for Ukraine, according to U.S. Treasury Secretary Janet Yellen. The loan package, backed by profits from frozen Russian central bank assets, is aimed at providing Ukraine with critical financial support.

Speaking at the start of the International Monetary Fund and World Bank annual meetings, Yellen emphasized that the U.S. contribution will total approximately $20 billion and would be paid back using revenue generated from Russian assets. "We’re 99% there and it’s nailing down just a couple of relatively small things," Yellen said, noting that the loan package is expected to be finalized soon, with funds reaching Ukraine by the end of the year.

The G7, which includes the U.S., the UK, and Japan, has collectively frozen around $280 billion of Russian assets, most of which are in Europe. These assets are projected to generate up to $5 billion annually, allowing the loans to be repaid. However, the EU's ability to keep the assets frozen long-term has been a point of contention, as sanctions must be renewed every six months. Despite these concerns, Yellen expressed confidence in the EU's commitment to keeping the assets immobilized, stating that the U.S. felt reassured about the security of the loan.

The U.S. move to solidify the loan package comes ahead of the November 2024 U.S. election, with Republican candidate Donald Trump signaling opposition to U.S. involvement in the Russia-Ukraine war.

While the package is nearly finalized, Yellen also hinted at upcoming sanctions aimed at deterring Russia’s military efforts, including penalties on intermediaries in third-party countries that supply critical resources to Russia’s war machine. These sanctions are expected to be unveiled soon.

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