Ukraine, Christmas Is Over
Segment # 366
Trump puts America first and that’s all you need to know to understand his motives. Amidst reports of corruption and mismanagement of funds, Biden threw money at Ukraine. Trump wants it back.
EU fnding of the Ukraine war is in the form of loans
The EU's funding for Ukraine's war effort and reconstruction is indeed largely in the form of loans, but with some important nuances:
A significant portion of EU financial assistance to Ukraine is provided as loans. In October 2024, the European Parliament approved a loan of up to €35 billion ($38 billion) for Ukraine's defense and reconstruction15.
However, these loans are designed to be repaid using future revenues from frozen Russian assets, not by Ukraine itself. The Ukraine Loan Cooperation Mechanism (ULCM) will use windfall profits from frozen Russian Central Bank assets to service and repay the loans13.
The EU has also provided some grant-based assistance. For example, in February 2024, EU leaders approved €50 billion in new financial assistance for the 2024-2027 period, consisting of €33 billion in loans and €17 billion in grants9.
As of January 2024, the EU and its member states had made available close to $145 billion in financial, military, humanitarian, and refugee assistance to Ukraine since the start of the war7.
It's worth noting that while a large portion of EU aid is in the form of loans, these loans often come with very favorable terms. For instance, the Economist reported that almost 90% of the financial aid from EU institutions has been in the form of loans, albeit with very generous terms8.
In summary, while a significant portion of EU funding for Ukraine is indeed in the form of loans, these loans are structured to be repaid using Russian assets rather than burdening Ukraine, and are complemented by some grant-based assistance.
US funding of the Ukraine war is in the form of Aid not loans
The statement that US funding of the Ukraine war is entirely in the form of aid and not loans is not entirely accurate. While the majority of US support for Ukraine has been in the form of aid, there have been some loans as well.
The US has provided a substantial amount of aid to Ukraine since Russia's invasion in February 2022. As of December 31, 2024, US commitments dedicated exclusively to support Ukraine in its war against Russia reached $128 billion, according to the Ukraine Support Tracker4. However, official US government figures put the total aid even higher, at approximately $183 billion4.
Most of this support has indeed been in the form of aid, including military equipment, economic support, and humanitarian assistance. For instance, a significant portion of the aid package passed in 2024 included $25.7 billion for military equipment for Ukraine5.
However, there have been some loans as part of the US support:
In December 2024, the US Treasury Department disbursed a $20 billion loan to Ukraine as part of the $50 billion G7 Extraordinary Revenue Acceleration (ERA) Loans initiative9.
The economic support package of $7.9 billion passed in 2024 was structured as a loan, not a grant, although there are procedures by which the president can forgive these loans5.
USAID guaranteed repayment of a $20 billion loan to the Government of Ukraine, backing it with FY2024 funds7.
It's worth noting that a large portion of the aid, particularly military aid, is spent within the United States. About 86% of the military aid is being spent in the US, subsidizing weapons production in at least 31 states and 71 cities3.
In conclusion, while the majority of US funding for Ukraine has been in the form of aid, there have been significant loan components as well, making the original statement partially incorrect.
The Trump administration is actively negotiating with Ukraine for access to its rare earth minerals as a means to offset the cost of U.S. aid provided during the ongoing conflict with Russia12. Key points of the developing deal include:
The U.S. has proposed gaining 50% ownership of Ukraine's rare earth minerals and other valuable resources34.
The deal is framed as compensation for the financial and military aid the U.S. has provided to Ukraine since the Russian invasion in 202213.
President Trump has stated that he wants $500 billion worth of Ukrainian minerals as compensation, though Ukrainian President Zelensky disputes this figure3.
Initial drafts of the agreement were rejected by Zelensky due to a lack of security guarantees for Ukraine13.
Negotiations are ongoing, with both sides working towards a mutually beneficial arrangement26.
The Trump administration has suggested that U.S. troops could be deployed to provide security for the mineral operations if a peace deal with Russia is reached4.
Ukraine's parliament speaker announced that work on finalizing the minerals deal will begin on Monday, February 24, 20256.
The proposed deal has sparked controversy and debate, with Trump administration officials arguing it creates a "win-win" partnership, while critics express concerns about the terms and potential implications for Ukraine's sovereignty23. As negotiations continue, both sides are working to address key issues such as security guarantees and the specific terms of the mineral rights transfer68.