By Michael Hernandez
WASHINGTON (AA) - The G7 finalized the details on a $50 billion loan for Ukraine backed by frozen Russian assets, the White House announced Wednesday.
Daleep Singh, US President Joe Biden's deputy national security advisor for international economics, confirmed the agreement has been completed with the US set to provide a loan of $20 billion. The remainder will come from the G7, including the EU, UK, Canada and Japan.
"Nothing like this has ever been done before. Never before has a multilateral coalition frozen the assets of an aggressor country, and then harnessed the value of those assets to fund the defense of the aggrieved party, all while respecting the rule of law and maintaining solidarity," he told reporters.
"As a result, Ukraine will receive the assistance it needs now without burdening our taxpayers," added Singh.
Dispersals are set to begin by year's end, but Singh said the US hopes to ensure that half of the $20 billion comes in the form of military assistance for Ukraine. That would require congressional approval before the middle of December, and with lawmakers in the middle of an election it is unclear if it would happen.
"To be clear, either way, the US will provide $20 billion in support to Ukraine through this effort, whether it's split between economic and military support, or provided entirely via economic assistance," he said.
"In terms of next steps, the United States will now work with Ukraine to sign loan agreements in order to execute the loan and begin dispersing funds for the benefit of Ukraine before the end of this year," added Singh.
All US economic assistance will be dispersed via the World Bank's financial intermediary fund for Ukraine, which Singh said would “be subject to robust accountability and transparency measures, much like those used for existing US economic assistance to Ukraine."
The European Parliament (EP) on Tuesday approved a loan of up to $37.8 billion for Ukraine.
Rapporteur Karin Karlsbro of the Renew party emphasized the urgent need for financial aid during Tuesday's parliamentary session, stating, "Ukraine continues to resist Russian aggression, with its brave citizens fighting not only for their own freedom, but also for democracy, human rights and international law. Russia must compensate for the devastation it has caused."
The aid package was overwhelmingly approved in a 518 - 56 vote, with 61 abstentions.