Russian assets could support more aid | Wilnesh News

U.S. Treasury Secretary Janet Yellen said on Thursday that $50 billion in loans will be provided to the United States Ukraine President Joe Biden and the leaders of other highly developed countries in the Group of Seven industrialized nations have agreed to what could be the first of many loans backed by frozen Russian assets.

“This is not the last time this will be done. This is the first and there will be more to come if necessary,” Yellen told reporters at an event hosted by the Economic Club of New York. “We are getting the Russians to help compensate for the damage caused.”

The $50 billion loan will be At least US$260 billion Russian central bank assets with frozen value served as collateral. Most of these funds are held in EU countries.

Biden and G7 leaders reached an agreement on Thursday on the loan that will help pay for military resources, humanitarian aid and support for reconstruction in Ukraine as Russia’s bloody invasion continues Second year.

Yellen has been actively involved in loan negotiations. But actually distributing the funds will be complicated, she said.

“While we are trying to move quickly on this, I can’t give any timeline on when money will actually start flowing to Ukraine,” Yellen said.

Part of hammering out the details will be calculating how much each G7 country is willing to finance the loan.

A senior administration official told reporters at a news conference on Thursday that the United States would commit the full $50 billion if necessary. But Washington expects at least some G7 countries to pledge at least some of the funding.

“I think it’s important for Putin to recognize that we remain fully united in supporting Ukraine,” Yellen said. “We intend to provide Ukraine with the resources it needs to wage an effective war against Russia.”