The US Treasury Department reports that US Deputy Treasury Secretary Wally Adeyemo and Ukrainian Finance Minister Serhiy Marchenko discussed transferring revenues from frozen Russian assets to Ukraine on 20 August.
Following Russia’s invasion of Ukraine in February 2022, many Western countries and their allies imposed sanctions on Russia. This included freezing Russian assets. The total value of frozen Russian assets was substantial, estimated to be hundreds of billions of dollars. This included state assets and those belonging to sanctioned Russian individuals and entities.
According to the US Treasury statement, the virtual conversation centered on the potential release of these assets, which could provide Ukraine with “access to approximately $50 billion in additional financing by the end of this year to support Ukraine’s current and future needs.”
US Deputy Treasury Secretary Wally Adeyemo inquired about Ukraine’s progress on reforms to enhance the country’s economic resilience and improve governance. The officials also discussed the recent direct budgetary support the US provided to Ukraine.
The discussion follows earlier statements by US Treasury Secretary Janet Yellen, who emphasized that US budgetary assistance to Ukraine continues to be contingent on reforms that would “further enhance the resilience of Ukraine’s economy.”
The conversation touched upon the Extraordinary Revenue Acceleration Loans for Ukraine (ERA) mechanism, agreed upon by G7 leaders at their June summit. This program aims to allocate funds from frozen Russian assets to Ukraine through loans, although, in practice, Ukraine is expected to receive non-repayable financing from partners.
Adeyemo reaffirmed the US Administration’s support for Ukraine in its fight against Russia’s “illegal and unprovoked war” and commended Ukraine’s efforts to increase domestic revenues.
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