Ukraine war: US gives $20bn to Kyiv funded by seized Russian assets

US gives $20bn to Ukraine funded by seized Russian assets

The US has given $20bn (£15bn) to Ukraine, funded by the profits of seized Russian assets. The economic support forms a significant part of a $50bn (£39bn) package agreed by G7 member nations announced in June. Funding the aid through frozen assets means Russia has to "bear the costs of its illegal war, instead of taxpayers," US Treasury Secretary Janet Yellen said. It comes a matter of weeks before US President Joe Biden is replaced by Donald Trump, who has said he wants to end the war in Ukraine quickly upon taking office.

The president-elect has characterised financial support to Kyiv as a drain on US resources, casting doubt on whether aid will continue under the new administration. The US Treasury said on Tuesday that it had transferred the $20bn to a World Bank fund, where it will be available for Ukraine to draw from. Money handled by the World Bank cannot be used for military purposes. The administration had hoped to dedicate half of the money to military aid, the Reuters news agency reported, but this would have required approval from Congress. There were months of delay, amid political wrangling in the House of Representatives, before $61bn of military aid for Ukraine was approved in April.