Since Russia's invasion of Ukraine, the United States has collaborated with global partners to counteract Putin's aggression. Treasury Secretary Janet L. Yellen, speaking alongside Ukrainian Finance Minister Sergii Marchenko, emphasized that the coalition will not retreat and is committed to supporting Ukraine.
Yellen announced a significant development in this support: "The G7 is committed to making $50 billion in lending available to Ukraine by the end of this year." She further detailed that the U.S. will contribute a $20 billion loan, which will be repaid using proceeds from Russia’s assets. This approach aims to shift the financial burden of the war onto Russia rather than U.S. and European taxpayers.
To formalize this initiative, Yellen and Marchenko signed a joint statement. Deputy Administrator of USAID Michele Sumilas also attended, acknowledging USAID's role in facilitating this step.
Yellen highlighted the dual importance of supporting Ukraine: it fulfills a moral obligation and serves U.S. national interests by preventing further aggression from Putin and protecting NATO allies. "Supporting Ukraine also sends a broader unmistakable message: wars of choice launched by autocrats across the world will be met with a swift and united response," she stated.
The United States continues to provide military and financial aid to Ukraine while enforcing sanctions against Russia. A novel price cap on Russian oil was implemented to restrict revenues while maintaining global energy supply. Approximately $280 billion of Russia’s sovereign assets have been immobilized within G7 countries until reparations are made for war damages.
In June, President Biden and G7 leaders proposed an innovative solution involving loans funded by proceeds from immobilized Russian assets, providing Ukraine with necessary resources for defense and reconstruction.
Yellen concluded by commending her G7 counterparts for their progress and reaffirmed U.S. commitments against Putin's strategy: "The United States will continue to move forward to make good on our commitments."
