G7 and USA are planning $ 50 billion aid package for Ukraine

G7 and USA are planning $ 50 billion aid package for Ukraine

The USA and its western allies on a $ 50 billion $ , which is supported by the profits from frozen Russian assets. The package includes a US contribution of $ 20 billion, as the White House announced on Wednesday.

critical support for Ukraine

Those responsible for the bid administration consider this support to be crucial for the war-loving economy of Ukraine, especially now that the winter months are imminent. Daleep Singh, deputy national security advisor for international economy, said: "Ukraine is now preserved the help required without burdening our taxpayers."

political framework in the USA

The announcement takes place in a tense political phase in the United States. In less than two weeks there is a presidential election in which the Republican candidate Donald Trump, who has publicly skeptical about US help for Ukraine, could possibly return to the White House.

Use of the loan

Singh reported that the United States will provide at least half of the $ 20 billion by December. It is planned to use the first half for economic support, while the second half is intended as an additional military aid for Kiev. However, the White House needs further powers from the congress to provide parts of the loan as military support.

Alternatives in the absence of congress resolution

If the White House cannot reach an agreement with the legislator to secure the necessary powers, Singh said that the administration will instead provide the entire loan amount as economic aid. "We will definitely provide $ 20 billion. But we will work with the congress in the next few months to check whether we can get enough powers by financing from abroad and the granting of loans to provide half of our help as military support," added Singh.

Additional contributions from G7 partners

The remaining $ 30 billion of help are provided by the European Union and the G7 partner countries, including the United Kingdom, Canada and Japan. Singh emphasized: "As we agreed in June, the G7 will begin with the provision of support in favor of Ukraine until the end of this year to meet Ukraine's urgent needs, while we send an unmistakable signal: The United States and your G7 partners will not let up."

progress in the negotiations

The campaign led by the USA to achieve an agreement between the other G7 nations-the United Kingdom, Canada, France, Germany, Italy and Japan-was announced at the group in Puglia, Italy. In the following months, the United States and its allies were able to clarify the details to implement the complex loan. European MPs approved a loan of around $ 37.7 billion (35 billion euros) for Ukraine on Tuesday.

freezing of Russian assets

a way out of the debt situation

originally expressed European civil servants that they could be liable for the repayment of the loan if Ukraine is unable to repay it. However, the negotiators ultimately created a structure in which all countries involved share the risk. If the parties to the conflict reach a peace agreement, either the Russian assets remain frozen and generate interest to repay the loans, or Russia will pay for the damage caused.

future financing of Ukraine

The G7 countries have thought about long-term sources of financing for Ukraine at the end of last year, given doubts about the future political and financial obligation to continue to issue tax money in Ukraine.

This report was supported by CNN reporters Kayla Tussche and Arlette Saenz.