The Biden administration has revealed a $20 billion loan to Ukraine, which will be secured by the value of Russian assets that have been frozen in the European Union.

This loan, termed the Extraordinary Revenue Acceleration, is part of a larger agreement made by the Group of Seven (G7) democratic nations in June to provide Ukraine with as much as $50 billion in financial aid. These assets were frozen following Russia’s invasion in February 2022.

President Joe Biden emphasized that this action enables Ukraine to “obtain the support it requires immediately, without placing a financial strain on American taxpayers.”

During a press briefing, Daleep Singh, the Deputy National Security Advisor for International Economics, stated that the remaining $30 billion in loans would come from a mix of G7 nations, including the European Union, the United Kingdom, Canada, and Japan.

“To clarify, this is unprecedented,” he remarked. “Never in history has a coalition of nations frozen the assets of a belligerent state and then used the value of those assets to support the defense of the affected nation, all while upholding legal principles and unity.”

Singh mentioned that the loan is expected to be finalized by the year’s end.

This past Tuesday, the European Parliament approved an approximately $37.7 billion loan, while the UK government backed $2.9 billion of the $50 billion commitment.

The U.S. is expected to contribute at least $10 billion of the loan as economic support through a fund set up by the World Bank.

The Biden administration aims to allocate up to $10 billion of the loan for military aid, though this requires Congressional approval by mid-December, Singh explained.

“These loans will assist the Ukrainian people as they defend and rebuild their nation,” Biden stated.

“To clarify, either way, the U.S. will ensure $20 billion in support for Ukraine through this initiative, whether it’s divided between economic and military aid or entirely offered as economic support,” he noted.

The financial aid, according to Singh, will address Ukraine’s energy requirements and enhance its protection against drone strikes targeting substations and transformers.