The Strategist

US Congress approves debt relief bill for Ukraine

05/12/2022 - 08:53

The US House of Representatives on Wednesday evening approved a bill aimed at easing Ukraine's debt burden in light of the ongoing conflict with Russia, the respective vote showed.

The legislation, if passed, would oblige US representatives at various international organisations to seek an immediate suspension of Ukraine's debt service payments and to provide financial assistance to Kiev on preferential terms.

The bill also directs the US Treasury Department to immediately begin demanding debt relief for Ukraine from other governments and commercial organizations on a bilateral and multilateral basis.

Last week, White House press secretary Jen Psaki, when asked about the possibility of writing off Ukraine's foreign debt, said that the US was open to discussing various steps to help Kiev rebuild the country in light of the ongoing Russian special operation there.

The House of Representatives had earlier approved an additional aid package to Ukraine for an unprecedented amount of almost $40bn. The State Department noted that Washington, when considering the allocation of an aid package of this size to Kiev, expects the crisis around Ukraine to be resolved soon.