US Rushing $20 Billion To War-torn Ukraine Ahead Of Trump’s Presidency

By Stefan J. Bos, Chief International Correspondent Worthy News

WASHINGTON (Worthy News) – The United States rushed on Tuesday to loan war-torn Ukraine $20 billion, backed by the interest earned on frozen Russian assets, to prevent Donald J. Trump from clawing back the money on his return to the White House.

With Trump’s January 20 inauguration as the 47th President of the United States just weeks away, Treasury Secretary Janet Yellen personally oversaw staff executing the wire transfer of the $20 billion to the World Bank fund, Worthy News learned.

The transfer is part of a $50 billion support package from the Group of Seven (G7) of leading economies agreed to this summer and apparently came as a welcome Christmas gift for struggling Ukraine.

“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,” 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 explained.

The $50 billion credit for 30 years will be serviced with the interest proceeds from some $300 billion in Russian sovereign assets, which were frozen after Russia invaded Ukraine in February 2022.

LONG TALKS

The G7 democracies discussed the plan for months and agreed on terms in October before Trump’s election, officials said.

Outgoing U.S. President Joe Biden initially sought to split Washington’s $20 billion loanin half, with $10 billion for military aid and $10 billion for economic assistance.

However, the military portion would have required approval from U.S. Congress, a task made more difficult by Republicans’ sweeping election victory, according to sources familiar with the situation.

Like Republicans, Trump has questioned what he views as Washington’s open-ended military support to Kyiv and pledged to “end the war in one day” once in office. Tuesday’s transfer will reportedly be devoted to non-military purposes.

The U.S. Treasury said funds were sent to a new World Bank fund called the ‘Facilitation of Resources to Invest in Strengthening Ukraine Financial Intermediary Fund (FORTIS Ukraine FIF).

The global lender’s board reportedly approved the fund’s creation in October, with only one country, Russia, objecting.

DOLLAR STRENGTH

Yet, experts say the strength of the U.S. dollar since former President Trump’s reelection victory on November 5 has diminished the loan slightly in dollar terms.

According to a G7 loan term sheet, the EU will provide 18.115 billion euros ($19.1 billion), Canada C$5 billion ($3.52) billion), Britain 2.258 billion pounds ($2.88 billion), and Japan 471.9 billion yen ($3.11 billion).

Ukraine is heavily dependent on U.S. and European military and financial aid as it seeks to stop Russia’s invasion, now in its third year, with winter setting in.

A $61 billion U.S. aid package for Ukraine passed in ApriL.

It was the fifth since the war started in February 2022, but will likely run out by early next year.

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