As Prepared for Delivery
Since the moment that Russia invaded Ukraine, the United States has worked with our partners and allies around the world to stand strong against Putin’s aggression. As Russia continues its brutal and unjust war, mortgaging its future and economy to move to a permanent war footing, Putin is engaged in a contest of wills with our coalition, and he is counting on us to retreat. Today, alongside my Ukrainian friend and colleague, Minister Marchenko, I want to be clear that we will not retreat, and that we will do everything we can to support Ukraine.
In a decisive sign of that resolve and our solidarity with Ukraine, I am very glad to announce another step forward. The G7 is committed to making $50 billion in lending available to Ukraine by the end of this year. And the United States will join the G7 to provide a $20 billion loan to Ukraine that will be repaid by proceeds derived from Russia’s own assets. This means that as we look ahead, Russia will increasingly be forced to bear the costs of its illegal war, instead of taxpayers in the U.S. and Europe.
To mark our intention to enter into this loan, and to demonstrate our commitment that profits earned on Russia’s immobilized assets, not new U.S. or Ukrainian tax dollars, will be the source of repayment, Minister Marchenko and I are here today to sign a joint statement. I am glad that we are also joined by Deputy Administrator of USAID Michele Sumilas, as USAID helped make this step possible and will be critical to implementation.
Supporting Ukraine is important in its own right: to equip a sovereign, democratic country with the tools it needs to protect its people from unspeakable brutality, and its economy from devastation. We are fulfilling a moral obligation. But let me be clear: Supporting Ukraine is also vital for the national interest of the United States. Letting Ukraine fall would invite further aggression by Putin and jeopardize the safety of our NATO allies in Europe, who we are committed by treaty to defend. Supporting Ukraine also sends a broader unmistakable message: wars of choice launched by autocrats across the world will be met with a swift and united response. And supporting Ukraine is essential to upholding the rules-based international order that has supported peace and prosperity for America and the world since the end of World War II.
For all these reasons, we continue to provide Ukraine with weapons and financial support to sustain its brave resistance. We imposed, and continue to expand and enforce, a historic sanctions regime to deprive Russia of the funds and goods it needs to prosecute its war of choice. We put in place a novel price cap on Russian oil that restricted Russia’s revenues while keeping global energy markets well-supplied. We also immobilized approximately $280 billion of Russia’s sovereign assets held in financial institutions across G7 countries and agreed that they would remain immobilized until Russia pays for the damage it has caused.
In June, President Biden and G7 Leaders proposed a creative solution: a loan that would equip Ukraine with the near-term resources to defend itself and rebuild, repaid by capturing windfall proceeds earned on Russia’s immobilized assets.
This loan initiative will provide Ukraine with urgently needed funds and will make funds available by the end of this year. It will send a message to Putin that waiting out our coalition is a losing strategy. And it will advance our collective security and the values that have supported our global economy and financial system for nearly a century.
Let me congratulate my G7 counterparts on the progress we’ve made. The United States will continue to move forward to make good on our commitments and show Putin that we will not back down.
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