US offers up to $1 billion loan guarantee to Ukraine amid mounting Russian aggression

In a bid to bolster support against "Russia's destabilising behaviour", the US Secretary of State Antony Blinken on Monday announced up to $1 billion in sovereign loan guarantee to Ukraine. Affirming strong support to Kyiv's economic reform agenda and continued engagement with the International Monetary Fund (IMF), Blinken said the allotment will "ensure stability" for the ex-Soviet nation in the face of imminent invasion threats from Moscow. 

"The United States is reaffirming our strong commitment to the Ukrainian people by joining with allies and partners to mobilize robust international support for Ukraine. The U.S. government is offering a sovereign loan guarantee to Ukraine of up to $1 billion to support its economic reform agenda and continued engagement with the International Monetary Fund (IMF)," the State Department said.

The allowance comes after White House principal Press Secretary Karine Jean-Pierre on Monday informed that US President Joe Biden administration was "considering" a loan guarantee up to $1 billion. “It is something we are considering as part of the additional macroeconomic support we are exploring to help Ukraine’s economy amidst pressure resulting from Russia’s military buildup," Jean-Pierre had said. As per reports, the idea was brought up by US NSA Jake Sullivan during a briefing with lawmakers on Monday.

US seeking for 'additional ways to support Kyiv': State Dept.

Combined with the strong partnership between Kyiv, the IMF, other international financial institutions, the G7, and other bilateral donors, the sovereign loan offered by the US is expected to promote "growth and prosperity" for the people of Ukraine, while the US seeks "additional ways to support Kyiv...amid Russian pressure in recent years," the US State Department said in its statement.

"The Export-Import Bank of the United States intends to make available up to $3 billion to facilitate procurement of U.S. goods and services for projects in Ukraine, while the U.S. International Development Finance Corporation has a current investment portfolio in Ukraine of approximately $800 million across more than a dozen projects," the announcement added.

Notably, the US had previously issued three separate $1 billion sovereign loan guarantees assigned to Ukraine between 2014 and 2016.

The loan offer comes at a time when the Russian threat has impacted Ukraine's economy with the latter's currency hitting a three-week low on Monday, as reported by The Hill. In addition, Kyiv and the West also continue to remain threatened as Moscow beefs up troop build-up along the Ukraine-Russia border.

(Image: AP)