The United States and its G7 allies are advancing with a $50 billion loan plan for Ukraine, with an allocated $20 billion coming from the U.S., leveraged by confiscated Russian assets.
Officials from the Biden administration view the aid as crucial for Kyiv's war-torn economy as winter approaches.
White House deputy national security advisor for international economics Daleep Singh stated, "Ukraine will receive the support they require right now, without placing a burden on our taxpayers."
This announcement was made during a politically tense period in the US, which is just over two weeks away from a presidential election that could potentially see Republican candidate Donald Trump, a known critic of US aid to Ukraine, return to the White House.
Singh revealed that the US intends to distribute at least half of its $20 billion loan by December this year. Half of the loan will be used for economic assistance, while the remaining half will be allocated for additional military aid to Kyiv. However, the White House will need approval from Congress to provide parts of the loan as military support.
In case the White House fails to reach an agreement with Congress concerning the necessary authorizations, Singh stated that the administration would shift its focus and provide the full loan amount as economic aid instead.
"We'll deliver $20 billion either way. Over the next few months, we'll collaborate with Congress to determine whether we can obtain enough authority through foreign military financing and loan guarantee authorities to provide half of our aid through military support," Singh said.
The remaining $30 billion in aid will be provided by the European Union and other G7 partners, such as the UK, Canada, and Japan.
Singh emphasized, "As we pledged in June, the G7 will begin dispersing aid for Ukraine's benefit by the end of this year, enabling us to meet Ukraine's urgent needs ahead of winter while sending a clear message: the United States and its G7 partners will not tire."
The US-led mission to reach a consensus among G7 nations (UK, Canada, France, Germany, Italy, and Japan) was announced at the group's summit in Puglia, Italy, earlier this year.
Since then, the US and its allies have worked to fine-tune the intricate loan's implementation details. On Tuesday, European legislators approved a loan of approximately $37.7 billion (35 billion euros) for Ukraine, backed by frozen Russian assets.
Future developments will be shared following the upcoming G7 finance ministers meeting, according to Singh.
Western countries froze Russian assets in European and US bank accounts as part of a series of heavy-handed sanctions in retaliation for Russian President Vladimir Putin's invasion of Ukraine in 2022. Roughly $3 billion worth of assets are frozen in US bank accounts, while hundreds of billions are frozen in European banks.
Initially, European officials expressed concerns that they might be responsible for repaying the loan if Ukraine failed to do so. However, following negotiations, the arrangement has been structured so that all participating countries share the risk.
Should a peace agreement be reached in the conflict, Russian assets will either continue to gather interest to repay the loans until they're repaid or Russia will cover the damage it has caused.
The G7 nations began considering alternative, long-term funding sources for Ukraine towards the end of last year, amid doubts about the future political and financial commitment to keep spending taxpayer money in Ukraine.
CNN reporters Kayla Tausche and Arlette Saenz contributed to this report.
This politically tense period in the US is marked by the upcoming presidential election, which could see the return of Republican candidate Donald Trump, a known critic of US aid to Ukraine.
The aid distribution plan for Ukraine, as revealed by White House deputy national security advisor Daleep Singh, is a significant political issue, requiring approval from Congress for military support.
