Biden administrations moves to forgive $4.7 billion of loans to Ukraine

By Simon Lewis (JO:LEWJ) and Daphne Psaledakis

WASHINGTON (Reuters) – The Biden administration has moved to forgive about $4.7 billion in U.S. loans to Ukraine, State Department spokesperson Matthew Miller said on Wednesday, as outgoing officials seek to do what they can before leaving office to bolster Ukraine in its war against Russia.

A funding bill passed by the U.S. Congress in April included just over $9.4 billion of forgivable loans for economic and budgetary support to Ukraine’s government, half of which the president could cancel after Nov. 15. The bill appropriated a total of $61 billion to help Ukraine fight the full-scale invasion Moscow launched in February 2022.

“We have taken the step that was outlined in the law to cancel those loans,” Miller told a press briefing, adding that the step was taken in recent days.

Congress could still block the move, Miller said.

The Senate is due to vote later on Wednesday on a motion of disapproval of loan forgiveness for Ukraine put forward by Republican Senator Rand Paul, a frequent critic of U.S. support for Ukraine. The majority of senators from both parties support aid to Ukraine.

President Joe Biden has ordered officials to rush as much aid to Ukraine as possible before he leaves office on Jan. 20 amid concerns President-elect Donald Trump could limit U.S. support.