At a critical time in Russia’s invasion of Ukraine, the United States and its allies are calling for bold action to support Ukraine. The global coalition, including the Group of 7 and European countries, is engaged in a battle of wills with Vladimir Putin as Russia continues its assault on Ukraine. Russia’s aggression poses a threat to Ukraine’s sovereignty, global security, and the rules-based international order. In response, the US and its allies have imposed multilateral sanctions on Russia and provided weapons and financial support to Ukraine.
At the beginning of the war, the US and its allies immobilized approximately $280 billion of Russia’s sovereign assets held in financial institutions to prevent them from being used to fuel Putin’s war. These assets are generating billions of dollars in revenue each year, which Russia has no legal claim to. The European Union has agreed to direct these earnings to support Ukraine, but more funding is needed to meet Ukraine’s urgent and future needs.
To provide additional support to Ukraine, the US has proposed a loan that would be paid off over time with the earnings generated from Russia’s immobilized assets. This would give Ukraine the resources it needs to defend itself and rebuild, while sending a clear message to Putin that the coalition is committed for the long haul. The proposal is in line with domestic and international law and does not rule out taking further actions on Russia’s assets in the future.
Progress has been made on the proposal, including discussions at the recent Group of 7 Finance Ministers and Central Bank Governors meeting, thanks to President Biden’s leadership. The upcoming Group of 7 summit provides a crucial opportunity for leaders to endorse the proposal and strengthen efforts to provide Ukraine with the resources it needs to defend against Russian aggression. The goal is to show Putin that the coalition is united in its support for Ukraine and will not back down in the face of his aggression.
