US offers Ukraine $1 billion loan guarantee

Secretary of State Antony Blinken announced late Monday that the U.S. is offering Ukraine a loan guarantee of $1 billion to help strengthen its economy in the midst of “Russia’s destabilizing behavior.”

The loan will help support Ukraine’s “economic reform agenda and continued engagement with the International Monetary Fund” and promote “economic stability, growth, and prosperity,” according to a statement by the department.

The U.S. previously issued three separate $1 billion sovereign loan guarantees to Ukraine between 2014 and 2016. The State Department added that it would be seeking “additional ways to support Ukraine and its people.”

“The Export-Import Bank of the United States intends to make available up to $3 billion to facilitate procurement of U.S. goods and services for projects in Ukraine, while the U.S. International Development Finance Corporation has a current investment portfolio in Ukraine of approximately $800 million across more than a dozen projects,” the department said in its announcement.

Blinken also tweeted Monday that the U.S. was “working closely with allies to mobilize robust international support for Ukraine, including a U.S.-backed sovereign loan guarantee of up to $1 billion to support key reforms. This support will bolster Ukraine’s ability to deliver prosperity for its people.”

White House principal deputy press secretary Karine Jean-Pierre had told reporters earlier on Monday that the Biden administration was considering a $1 billion loan guarantee to Ukraine.

“It is something we are considering as part of the additional macroeconomic support we are exploring to help Ukraine’s economy amidst pressure resulting from Russia’s military buildup,” said Jean-Pierre.

According to sources close to the matter, White House National Security Adviser Jake Sullivan had brought up the idea of a loan guarantee to Ukraine during a briefing with lawmakers on Monday.

This move from the U.S. comes as officials have warned for weeks that a Russian invasion of Ukraine could come as early as this week. On Monday, the U.S. closed down its embassy in Ukraine’s capital city of Kyiv and moved its operations over 300 miles west to the city of Lviv. The State Department also Monday night advised Americans against travel to Belarus and Moldova citing the increased military buildups along the countries’ borders.

The threat of war with Russia has already impacted Ukraine’s economy. Reuters reported the Ukrainian Hryvnia, its currency, hit about a three-week low on Monday.