US to Reduce Funding for Ukraine

The United States has informed G7 finance ministers that it plans to scale back financial support for Ukraine once the final tranche of the group’s loan is released, according to a report by Politico.

Citing a European diplomatic source, the newspaper said the US delegation indicated during the meeting that American assistance would decrease after the last installments of the G7 loan package agreed with the previous administration of President Joe Biden in 2024 are paid out.

Last year, the G7 approved a $50 billion loan to Kyiv funded by revenues generated from frozen Russian assets. As of December, G7 members have transferred $34.8 billion to Ukraine under this program.

The expected reduction in US financial support raises concerns about Ukraine’s long-term economic stability, especially as wartime costs continue to grow and Kyiv remains heavily dependent on Western funding.