According to a letter obtained by Bloomberg News, the Biden administration informed Congress that it plans to cancel $4.65 billion of debt owed by Ukraine, the latest in a series of measures taken to support Kyiv before President Trump took office.
As part of the $60 billion supplemental package approved in April, the White House will cancel half of the $9 billion loan to Ukraine.
Cancelling the debt, 'thereby helping Ukraine achieve victory, aligns with the national interests of the United States and its EU, G7+, and NATO partners,' the U.S. State Department said in a letter to Congress on November 18.
This move is part of a broader effort by Biden to provide more support to Kyiv before Trump returns to the White House. Trump has stated that his top priority is to push for peace negotiations between Russia and Ukraine, while supporters of Kyiv worry that he may cut off aid as part of pushing this process.
In recent days, Biden agreed to allow Ukraine to use U.S.-provided long-range missiles to strike targets in deep Russian territory. On Wednesday, the U.S. government announced a new security assistance package worth $275 million, which includes anti-personnel mines.
The U.S. State Department confirmed the forwarding of the letter and stated that the government's actions are in line with the authority specified by Congress in legislation.
However, this plan has faced opposition from Republicans. Kentucky Senator Rand Paul posted on X on Wednesday that he would seek to force a vote in the Senate to 'prevent the Biden administration from turning Ukraine's debt into the responsibility of the American people.'
Paul's proposal would need to be approved by both chambers of Congress, but given that Democrats control the Senate, this is unlikely to happen. If the resolution passes, Biden may also veto the proposal.
A U.S. official said on Wednesday evening that Biden has the authority to cancel 50% of the debt.
U.S. Secretary of State Antony Blinken said during a visit to Brussels a few days after the election to reassure allies that the Biden administration is committed to ensuring that 'every dollar we can mobilize' is provided to Ukraine.
This loan is separate from the nearly $9 billion in military assistance that the government promised to provide before the end of Biden's term. About $7 billion of this must be primarily used for weapons supplied from U.S. stockpiles, which is a challenging task as the Pentagon is already facing shortages of some key missiles and other systems.
The remaining funds will be used for defense production contracts, which will be sent directly to Ukraine once the supplies are ready. The Trump administration could choose to cancel some of these contracts, but it would come at a cost.
Article forwarded from: Jinshi Data
