White House plans to cancel almost $5 bln of U.S. debt for Ukraine

The administration of current U.S. President Joseph Biden has submitted to Congress a statement of intent to cancel half of Ukraine's debt for economic assistance in the amount of about $4.65 billion, State Department spokesman Matthew Miller said at a briefing on Wednesday.

"So we have taken the step that was outlined in the law to cancel those loans, provide that economic assistance to Ukraine, and now Congress is welcome to take it up," Miller said.

It is noted that after the White House informed Congress of this decision, lawmakers may adopt a resolution to object to it. However, according to Miller, this will not happen.

"I think I would be surprised if Congress took that step, given the overwhelming bipartisan support in Congress for providing assistance. But we will follow the law," he explained.

It was previously reported that in April, the House of Representatives passed a $95 billion supplemental spending bill that included $61 billion in funding for Ukraine, and as part of that bill, Congress asked the Biden administration to submit a detailed strategy for Ukraine by early June. Weeks after the deadline passed without a report, some members of Congress said they were disappointed and would consider blocking further funding.

Under the terms of that document, about $10 billion in economic aid is provided to Kyiv as a conditional loan.

Meanwhile, the document gives Biden the authority to cancel 50% of that loan.

It provides that from November 15, 2024, the current president can cancel up to 50% of this loan, while the remaining 50% of the loan can be canceled by the next president on January 1, 2026.