Biden Administration Moves to Cancel $4.7 Billion in Loans to Ukraine, Says Reuters

The Biden administration moves to cancel approximately $4.7 billion in US loans to Ukraine, State Department spokesperson Matthew Miller confirmed on November 20, according to Reuters.

The loans are part of a funding bill passed by Congress in April, which included $9.4 billion in forgivable loans for Ukraine’s economic and budgetary support. The legislation, which allocated a total of $61 billion in aid for Ukraine, allowed the president to cancel half of the loans after November 15.

"We have taken the step that was outlined in the law to cancel those loans," Miller said during a press briefing, adding that the decision was made in recent days. However, Miller noted that Congress retains the authority to block the cancellation.

The Senate is set to vote later on Wednesday on a motion of disapproval introduced by Senator Rand Paul, a critic of US aid to Ukraine. Despite the motion, bipartisan support for continued assistance remains strong.

President Joe Biden has emphasized the importance of accelerating aid to Ukraine before the end of his term in January, amid uncertainty about future US policy under President-elect Donald Trump, Reuters reported.

Previously the US Department of State has approved a potential $100 million sale of equipment and services to Ukraine, aimed at maintaining and repairing military vehicles provided as part of ongoing security assistance.