U.S. Backs New IMF Program, EU Plan to Provide Ukraine Loan from Frozen Russian Assets
The United States has voiced support for a new International Monetary Fund (IMF) program for Ukraine and signaled approval of the European Union’s proposal to issue a loan to Kyiv backed by frozen Russian central bank assets.
The Gaze reports this, referring to Reuters, citing European Commission Executive Vice President Valdis Dombrovskis.
Speaking to reporters on the sidelines of the IMF and World Bank annual meetings in Washington, Dombrovskis said he met with U.S. Treasury Secretary Scott Bessent to discuss ongoing financial assistance for Ukraine as the country faces sustained economic pressure from the war.
“There is now constructive engagement from the U.S. side as regards questions related to Ukraine support,” Dombrovskis stated. “The U.S. is broadly supportive and welcoming our initiative as regards reparation loan.”
Under the EU plan, Ukraine would receive funding through a loan secured by the approximately €210 billion (around $244 billion) in Russian central bank assets frozen in Europe since the invasion began.
The initiative aims to provide Ukraine with immediate financial relief while creating a legal mechanism for reparations should Moscow refuse future compensation.
The United States, however, has yet to decide whether to join the European initiative. About $5 billion in Russian state assets remain frozen on U.S. territory, compared with the significantly larger pool held within the EU.
Dombrovskis underscored that Washington’s backing will be essential for the approval of a new IMF support program for Ukraine. The IMF typically avoids lending to countries engaged in active conflict, meaning Kyiv’s access to financing depends on international guarantees for repayment.
“On the IMF program, this we discussed both bilaterally, but also it was raised at the G7, and the U.S. was, generally speaking, supportive of the IMF program,” Dombrovskis noted.
The discussions come as Ukraine faces the dual challenge of sustaining its defense effort and stabilizing its wartime economy. The EU and G7 partners are exploring mechanisms to make frozen Russian assets work for Ukraine, either as collateral for loans or through redirected profits from those assets.
As The Gaze previously reported, on October 1, Ukraine received another tranche of €4 billion from the European Union as part of the G7 Extraordinary Revenue Acceleration for Ukraine (ERA) initiative, which provides for financing from frozen Russian assets.