USA Confirms Support for Ukraine Funding Despite EU Sanctions Dispute

The USA intends to participate in a G7 financing initiative for Ukraine, even though the EU was unable to meet Washington's request for an extension of sanctions against Russia within the bloc. As reported by US and European officials to the Financial Times, Washington is preparing to join the $50 billion loan to Kyiv agreed upon by G7 leaders in June—without an extended EU sanctions duration. This comes amid growing pressure to present a unified stance on the Ukraine issue before a new president enters the White House. According to the G7 agreement, the entire loan amount is to be repaid from profits of Russian central bank assets frozen in the West. The majority of these assets are located in the EU. It was initially planned that the USA and the EU would each provide $20 billion, while Canada, Japan, and the United Kingdom would contribute the remaining $10 billion. However, Hungary blocked an extension of sanctions duration, forcing the European Commission to propose an alternative funds-raising plan based on the shared EU budget. This plan requires only the approval of the majority of EU member states. Due to these developments, the amount that the EU would have contributed could decrease if the USA indeed participates. The US government is currently discussing the amount of its contribution, with a possible sum being $5 billion—corresponding to the frozen Russian assets in the USA. A final decision is still pending, and the amount could also vary depending on US accounting considerations. A US official stated that it remains Washington's position to push for an extension of the EU sanctions regime while working on alternatives. The Ukraine loan is considered crucial in the US strategy to contain Russia. Participation in the G7 initiative is deemed very important by Treasury Secretary Janet Yellen. “We are committed to making a significant financial contribution to Ukraine by the end of the year, which will be repaid through the profits from the frozen Russian state assets,” said a spokesperson for the US Treasury Department. An official announcement is expected before the presidential elections in November.