The US Treasury Department on Tuesday said it transferred the $20 billion US portion of a $50 billion G7 loan for Ukraine to a World Bank intermediary fund for economic and financial aid to the war-torn country, Report informs via Reuters.
The Treasury Department said the disbursement makes good on its October commitment to match the European Union's commitment to provide $20 billion in aid backed by frozen Russian sovereign assets alongside smaller loans from Britain, Canada and Japan to help the Eastern European nation fight Russia's invasion.
The disbursement prior to President-elect Donald Trump's inauguration in January is aimed at protecting the funds from being clawed back by his administration.
Trump has complained that the US is providing too much aid to Ukraine and said he will end the war quickly, without specifying how.
The $50 billion in credit for 30 years will be serviced with the interest proceeds from some $300 billion in frozen Russian sovereign assets that have been immobilized since Russia invaded in February 2022. The G7 democracies have been discussing the plan for months and agreed on terms in October, prior to Trump's election.