U.S. to offer $1 billion in loan guarantees to Ukraine, officials say
March 4th, 2014
09:49 AM ET

U.S. to offer $1 billion in loan guarantees to Ukraine, officials say

The United States will provide Ukraine $1 billion in loan guarantees to help insulate the Ukrainian economy from the effects of reduced energy subsidies from Russia, senior Obama administration officials said.

The loan guarantees will help Ukraine move forward with an assistance package from the International Monetary Fund, which is calling for the country to raise energy prices.

U.S. Secretary of State John Kerry, who landed Tuesday in Kiev to show American support for the fledgling Ukrainian government, will announce this diplomatic move and others in Ukraine.

The officials, who are traveling with Kerry, said the administration would also be sending Treasury Department technical advisers to help Ukraine's national bank and finance ministry deal with economic challenges and implement energy-sector reforms.

The United States will also train observers for the May 25 elections and is sending a team of experts to help identify stolen assets and support anti-corruption measures.

With Ukraine looking to reduce dependency on Russian energy, the United States will provide assistance and financing to help Ukrainian businesses find new exports markets and will offer technical advice to the government on Ukraine's World Trade Organization rights with respect to Russia.

The assistance package comes as the United States considers economic sanctions against Russia, which one of the officials said could come within "days, not weeks."

This official spoke of a "solidification of Russian control of Crimea" and also referred to unconfirmed reports that Russian helicopters attempted incursions into Ukrainian airspace before Ukrainian planes chased them away.

In addition, the official discussed unconfirmed reports of forces massed on the isthmus separating Crimea from mainland Ukraine, sparking concern Russia wants to extend its forces to the Ukrainian mainland.

"We still have a very real concern that the Russians have other plans in Ukraine," a second official said.

The officials emphasized the importance of de-escalating tension in the region and pointed to a diplomatic way out for Russia to address its concerns in Crimea through international monitors. The Organization for Security and Cooperation in Europe, a regional security bloc, sent in 10 monitors Monday, but the officials encouraged Russia to agree to a much larger observer mission.

Russia should also engage in a dialogue with Ukraine, the officials said. The United States hopes to convene a meeting of signatory countries of the 1994 Budapest Memorandum, a pact of security assurances signed by the U.S., United Kingdom, Ukraine and Russia - as early as this week to begin that dialogue, but the officials said such a meeting was not yet scheduled.

"There is a way out for Russia," the first official said. "If Russia does not chose that off ramp, then the message from the administration is we are ready then to put in place more robust measures."

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    2BAD USA CAN'T LOAN 1BILLION$ 2HELP POOR&HUNGRY IN "THERE" 0WN country!

    March 13, 2014 at 4:36 pm | Reply
    • Ricky R. Jr.

      nope wont happened, they dont have anything to get in return. they simply don't give a crap ass

      March 13, 2014 at 10:23 pm | Reply
    • James

      While loans are being debated and or passed out, Can the US please give me at least a 1% loan guarantee of that 1 billion? I promise to pay it back, just like those countries you're giving our hard earned dollars to pay theirs back.

      March 15, 2014 at 10:30 am | Reply
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    March 11, 2014 at 11:57 pm | Reply
  61. Dave

    I could give a million to 1 odds and probably couldn't find a sane person to place 1 Dollar on the table to bet if that Billion Loan would ever be repaid. Lets tell the truth. We are going to give it to them. yes it's that simple!

    March 11, 2014 at 11:36 pm | Reply
    • Greg

      Quite rue Dave, quite true! We need to quit throwing away our tax money on violent right-wing dictatorships like the one that emerged in Ukraine while those idiots in Washington keep mouthing off about "spreading democracy"! Enough is enough!

      March 12, 2014 at 9:31 am | Reply
  62. Think_Dynamic

    US has leverage or legal right to use military force in Ukraine against Russia once $1Billion is received. US has every option to protect assets.

    March 10, 2014 at 12:34 pm | Reply
    • George patton

      Good grief Think_Dinamic, what a dumb post this is!!! What makes you think we have any right to butt into Ukraine. This kind of ignorance is exactly what triggered WW1!!!

      March 11, 2014 at 12:01 pm | Reply
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        Well put, George. The guy(Think_Dynamic) who posted the above is truly an idiot!

        March 12, 2014 at 9:35 am |
    • adam101

      We are funding in-elected people, therefore, no guarantee that money is going to ever come back. wrong investment.

      March 11, 2014 at 4:57 pm | Reply
  63. Paul

    That's what this is all about, get Ukraine in debt knowing they cant pay it back, then they will have no choice other than to do as the west and the EU wishes. Putin saw through this bull crap when it first started, and the former PM sad no after the people voted for it, there is no way out of the debt, and the west and the EU know this.

    March 10, 2014 at 12:18 pm | Reply
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      That exactly what the Western Dogs like to do. from the front it try to save you. but at the back it screwing your wife and your kids.

      March 10, 2014 at 7:24 pm | Reply
      • alf564

        Hey badheart,

        Its better than sending in troops and tanks and weapons carriers...or are you Communist?

        March 10, 2014 at 7:37 pm |
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        March 10, 2014 at 8:38 pm |
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        March 11, 2014 at 12:05 pm |
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    What's a mere billion, when compared to the money the Pentagon simply "can't account for?'

    March 8, 2014 at 7:07 pm | Reply
  68. Rusk

    looks like the U.S. just charged another 1 billion dollars on their Bank of China Credit Card. What a bunch of morns we have running this country. The money will ultimately just end up in the hands of Russia.

    March 7, 2014 at 9:57 pm | Reply
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  69. JB

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    March 7, 2014 at 6:16 pm | Reply
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      March 10, 2014 at 1:36 am | Reply
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    March 7, 2014 at 7:20 am | Reply
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    March 6, 2014 at 10:55 pm | Reply
  72. Hfhkfghk Dfghkh

    Didn't 1 billion U.S. go to Egypt then RU stole @ least the function of that money the same day RU launched their latest silent invation.

    March 6, 2014 at 3:10 pm | Reply
  73. Rant&Rave

    Give 1 billion to Ukrain to offset energy costs, energy comes from Russia, common core math solution says we just gave Putin and Russia 1 billion dollars. This money would be better spent domestically. Detroit could use that money.

    March 6, 2014 at 12:48 pm | Reply
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    March 5, 2014 at 6:09 pm | Reply
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    March 5, 2014 at 1:56 pm | Reply
  80. Random

    Of course we can spare a billion dollars for some other country to take care of their mistreated citizens , meanwhile our own gov defaults, loses its credit rating and shuts down, while our vets starve and go homeless. I for one am not willing to continue to pay for other countries to live a good life when we don't even take care of our own.

    Stop pouring my tax dollars down the drain if you wish me to keep paying them. We have homeless, starving , hard off people of our own to take care of before we go giving billions away just to spite russia. You politicians are acting like fools. I do not approve.

    March 5, 2014 at 1:08 pm | Reply
  81. Donald George MacDonald

    For millions of years, the most strong and aggressive leaders who survived vicious battles for food and females were chosen to procreate while the traits of more passive people diminished in comparison.

    Our ancestors eventually established homes and hunting territories that were often ambitiously expanded over others more passive. Territories were protected and defended against imagined, anticipated or actual intruders by a threatened viciousness and by an armed, united strength.

    Through the many thousands of past generations finally leading to us, humans did survive by being vigilant, territorial predators. Our eyes finally give us away. For the eyes of predators evolved to face forward in order to better identify their prey. The eyes of the hunted usually face more to the sides to better be on guard for the stalking survivors.

    March 5, 2014 at 12:40 pm | Reply
  82. alf564

    So is this how this works...we borrow 1 BILLION from China...lend it to Ukraine, the Russians take over Ukraine and keep the 1 BILLION but we, American Taxpayers, have to pay back China plus interest!!!???

    Wow, now that is a plan!!!

    March 5, 2014 at 10:10 am | Reply
    • George patton

      You're quite right except for one thing, alf564. The Russians will never take over Ukraine although the eastern half belongs the the Eastern Orthodox Church and are strongly pro-Russian. It's that the right-wing thugs in Washington are trying to scare us again as they did throughout the Cold War over Russia!

      March 5, 2014 at 10:23 am | Reply
    • Rant&Rave

      Yea. You solved your first common core math problem. Liberals can't think this deep. They see it as a good humanitarian act of kindness. When in reality we did just give Putin 1 billion in borrowed money. They better start a liberal get your mind right camp and give me some enhanced interrogation techniques, or come November I will go down the entire ballot and vote against anyone with a (D) next to their name.

      March 6, 2014 at 12:58 pm | Reply
      • AHarris2006

        @Rant&Rave – You're talking about Liberals, unfortunately the ones who passed this idiotic 'humanitarian act' were the Republican House of Representatives by a nearly unanimous vote (there were 23 nays), not the Liberal Democratic-controlled Senate. These are the same US Representatives that refused to okay the US budget & shutdown the entire government (not to mention all the cuts to the poor, children, disabled, aged, veterans, etc.) because the 'US couldn't afford it.'

        March 6, 2014 at 4:20 pm |
    • Goodheart

      And yet your government wonder where are the missing $$$.

      They promised 1billion. I would be happy if 100 million actually being given. that being said there will be a list that goes with it. the 100 million will claim your soul.

      March 10, 2014 at 7:27 pm | Reply
  83. wavejump1100

    how can we loan or give money away when we have such a large amount of debt? oh yea just print it!

    March 4, 2014 at 9:43 pm | Reply
  84. smelly

    Who cares about Ukraine? we need money here!

    March 4, 2014 at 8:04 pm | Reply
  85. John Smith

    America is the root of all terror. America has invaded sixty countries since world war 2.
    In 1953 America overthrow Iran's democratic government Mohammad Mosaddegh and installed a brutal dictator Shah. America helped Shah of Iran to establish secret police and killed thousands of Iranian people.
    During Iran-Iraq war evil America supported Suddam Hossain and killed millions of Iranian people. In 1989, America, is the only country ever, shot down Iran's civilian air plane, killing 290 people.
    In 2003,America invaded Iraq and killed 1,000,000+ innocent Iraqi people and 4,000,000+ Iraqi people were displaced.
    Now America is a failed state with huge debt. Its debt will be 22 trillion by 2015.

    March 4, 2014 at 5:36 pm | Reply
    • Goodheart

      And America wonder why the world hates her foreign policy.

      March 10, 2014 at 7:30 pm | Reply
  86. Mhryh Pugfdb

    It's funny how these cutthroats in Washington have a billion dollars to give Ukraine while people here in America go hungry! These people need to be indicted just for being the cowardly warmongers they are!!!!!!!!!

    March 4, 2014 at 5:22 pm | Reply
  87. dottou

    fortunately this 1 billion not from my because I must wait 4/15 to pay my tax

    March 4, 2014 at 5:12 pm | Reply
  88. Brian

    More money flowing out of the US and to aid others when we won't aid our own Veterans. Nice job Congress

    March 4, 2014 at 4:31 pm | Reply
  89. desertvoice

    I have said all along, for a decade, that the U.S. needs to start sending natural gas via an Alaska-Canada pipeline, liquify it, and then sell itto countries like EU and Ukraine. The current situation in the mentioned countries justifies signing such treaty with Canada, now!

    March 4, 2014 at 1:33 pm | Reply
  90. Peace

    Actually identified ....ENERGY INFORMATION ADMINISTRATION ! How's that looking with the unrest in Ukraine and Russia. ? Who 's in charge of this particular in Europe ? Any disruptions detected ?

    March 4, 2014 at 1:09 pm | Reply
  91. Peace

    Who's keeping an eye on that EIA with all the Russia and Ukraine unrest ? Emergency Information Administration and gas price disruptions ?

    March 4, 2014 at 1:06 pm | Reply
  92. Peace

    CNN is really doing a fantastic job on the coverage of Ukraine and Russia breaking the law and leaving pretty much the politics out of the reporting. I didn't know John Kerry was Catholic but he prayed today seeing the dead bodies and flowers on the street where the protest had been. The I'm sorry mom letter was a tear jerker and the police the letter said shot at them and their dead. Oh my God and they're police need training !

    March 4, 2014 at 11:49 am | Reply
  93. Donald George MacDonald

    And our majority of citizens only parrot to others that U.S. global military strength and expansionism and weapons productions and weapons sales will make us safer when instead the opposite is surely true.

    And even our most patriotic and brave soldiers will not be able to protect us from our foreign blunders.

    And even our most patriotic and brave soldiers will not be able to protect us from those who fear U.S. global military expansionism and from those who covet our sold weapons of mass destruction and from those who despise the arrogance of U.S. actions and its failed foreign policies.

    March 4, 2014 at 11:46 am | Reply
    • Donald George MacDonald

      And the U.S. is the supreme military and economic power behind a worldwide military-industrial complex.

      And the U.S. has allocated $572 billion in "defense" spending for 2014.

      And it is no surprise that our struggling U.S. and world economies, temporarily supported by weapons productions and sales, will continue to only flounder on by if...only if our "Masters of War" can fuel even more wars…even more foreign wars fueled by our failed foreign policies and with our sold weapons of mass destruction.

      And when “world peace’ is somehow discovered and is somehow forced upon even the U.S., the worldwide military-industrial complex, led by the U.S., will collapse.

      And this collapse will create a global economic depression and social upheaval that will put the “Great Depression” to shame.

      Why?

      Because this will be the price all world citizens will have to initially pay as we finally try to make right our past moral wrongs.

      March 4, 2014 at 11:47 am | Reply
  94. Chris

    1 Billion in loan guarantees to the Ukrainian government to cover the cost of increased fees from Russia? We would effectively be giving the Russians $1Billion. This seems unwise unless our goal is paying them off...

    Further, what is our expectation that a bankrupt Ukraine repay such loans?

    This seems irresponsible...

    March 4, 2014 at 11:43 am | Reply
    • desertvoice

      Putin is not annexing Crimea! All the poor chap is doing, is to ask in a couple of weeks the Crimeans, whether they want to be annexed! The man is doing all by the book ... except, that according to the international law, he should have asked thhe Ukrainians first! A small ommission, probably lost in translation from Russian to English.

      March 4, 2014 at 1:44 pm | Reply
  95. Peace

    I don't understand and someone needs to explain this deal . Putin is in charge with his military but the US is going to back one billion in loan guarantees to Ukraine that Putin has taken charge of with his military. Who's explaining to the American people how that will work out ? Where is this billion coming from ? See US Debt and to heck with hand our US money to Putin if he's in charge over there. Have they found the president Yanukovych they say is on the lamb ? Yatsenyuk is filling in as the president and lets get all this straightened out before you send the US tax payer billion.The billion dollar loan guarantee is to help off set the reduction of energy subsidies from Russia. Is the Key Stone Pipe Line open in the US yet ? Are we going to end up with lines at the pumps again like we saw with Carter over this situation if it's not handled correctly ? I think we call our former Secretary of State and ask her advice and Kerry didn't know when asked what the re-start was about. Hillary call Kerry and explain it. If we isolate Putin's bank accounts do you think he'll pay the bank back ? What did Putin respond concerning and he said something about that.

    March 4, 2014 at 11:39 am | Reply
  96. Marty

    Sure hope somebody got the OK from China before we spend their money!

    March 4, 2014 at 11:16 am | Reply
  97. philos

    Interesting. USA paid 5 bilions for revolution and offer 1 bilion for help...

    March 4, 2014 at 10:43 am | Reply
    • Goodheart

      the 5 billion is investment and the 1 billion cost.

      March 10, 2014 at 7:31 pm | Reply
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