US considers USD 1 billion in loan guarantees for Ukraine

Ukraine is one of the poorest countries in Europe and its corruption-plagued economy has suffered from heightened tensions over the possibility of an invasion by Russia.
Members of Ukraine's Territorial Defense Forces, volunteer military units Dozens of civilians have been joining Ukraine's army reserves in recent weeks amid fears about Russian invasion. (Photo | AP)
Members of Ukraine's Territorial Defense Forces, volunteer military units Dozens of civilians have been joining Ukraine's army reserves in recent weeks amid fears about Russian invasion. (Photo | AP)

WASHINGTON: The United States could offer $1 billion in credit guarantees to help Ukraine weather the threat of war against Russia, the White House said Monday.

White House principal deputy press secretary Karine Jean-Pierre told reporters that the loan guarantee "is something we are considering as part of the additional macro-economic support we are exploring to help Ukraine's economy in this pressure resulting from Russia's military build-up."

She did not give details of what steps it would take to approve the US backing, which if it goes forward would make it far easier and likely cheaper for Ukraine's government to borrow money.

Ukraine is one of the poorest countries in Europe and its corruption-plagued economy has suffered from heightened tensions over the possibility of an invasion by Russia, which has sent over 100,000 troops encroaching from three directions.

US National Security Advisor Jake Sullivan briefed congressional leaders Monday on the plan, according to a source familiar with the matter.

On Sunday, Sullivan repeated the Biden administration's view that Russia could attack Ukraine "any day now."

In addition to economic and humanitarian aid, the United States has provided Ukraine with $650 million in military assistance over the past year.

On Monday, German Chancellor Olaf Scholz said on a visit to Kyiv he was "determined" to maintain aid to the country.

G7 countries have also warned Moscow they are ready to impose sanctions that would have a huge and immediate impact on Russia's economy, should it pursue any further military aggression against Ukraine.

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