The European Union is preparing to provide Ukraine with new loans worth up to 40 billion euros by the end of the year, regardless of whether the United States joins it. This came after a G7 plan to use frozen Russian assets to financially support Kyiv failed, informs Financial Times.
According to sources involved in the negotiations, Brussels is worried that Hungary could block the provision of guarantees necessary for US participation in the scheme. The government of Viktor Orbán, known for his pro-Russian positions, tried to delay the decision until the US presidential election in November. In response, the EU plans to develop an alternative approach to financing Ukraine in the coming weeks.
According to a draft seen by the FT, the EU is considering giving Ukraine “an unspecified number of billions” by the end of 2024. The plan would expand an already existing aid program that would only require the support of a majority of EU member states, avoiding the need for unanimous consent that would allow Hungary to veto it.
The final amount of funding, officials said, could range from 20 billion to 40 billion euros and will be determined by the European Commission after consultation with member states.
While the initial plan involving the US remains the main option for the EU, Brussels is working on alternative solutions in case Hungary continues to use its veto power until the elections in the United States.
Earlier, the G7 leaders agreed to provide Ukraine with a $50 billion loan, which was planned to be repaid with the proceeds of frozen Russian assets, most of which are held in the Euroclear central depository in Belgium. The EU and the US were to provide 20 billion dollars each, and the rest was to come from Great Britain, Japan and Canada. However, the US insisted on guarantees that the assets would remain frozen to ensure a stable financial flow, which was not achieved.
