MOSCOW (dpa-AFX) - The U.S. Department of the Treasury has announced the disbursement of $20 billion to Ukraine as part of the $50 billion G7 Extraordinary Revenue Acceleration (ERA) Loans initiative.
'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,' said Secretary of the Treasury Janet L. Yellen. '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. Together with America's security assistance to Ukraine and the steps we will continue to take to decisively tighten sanctions on Russia, this action will further position Ukraine to defend its sovereignty and achieve a just peace. 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.'
Following Russia's invasion of Ukraine, G7 members decided to immobilize Russia's sovereign assets in their jurisdictions and committed that these assets will remain immobilized until Russia ends its aggression and pays for the damage it has caused to Ukraine, paving the way for G7 ERA loans.
The United States followed through on its October commitment to provide Ukraine with $20 billion under this initiative, by transferring these funds to the World Bank's Facilitation of Resources to Invest in Strengthening Ukraine Financial Intermediary Fund, or F.O.R.T.I.S. Ukraine FIF. Through the ERA initiative, the G7 has drawn forward the windfall proceeds from immobilized Russian sovereign assets, using those proceeds to support Ukraine.
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