The U.S. on Wednesday finalized its $20 billion portion of a long-awaited $50 billion loan to Ukraine backed by frozen Russian assets, announcing plans to start making funds available by year-end for economic and military aid.

U.S. Treasury Secretary Janet Yellen and Ukrainian Finance Minister Serhiy Marchenko signed an agreement for a U.S. loan commitment of $20 billion, which would be placed alongside a separate $20 billion European Union commitment and $10 billion to be split by G7 allies Britain, Japan and Canada.

The loan will be repaid with the earnings from the over $300 billion in sovereign Russian assets that have been immobilized since Moscow's armies invaded Ukraine in February 2022. The funds are mostly held in Europe.