The EU is preparing to provide new funding by the end of the year, regardless of US participation. The money will be allocated in accordance with the G7 proposal to use frozen Russian assets to help Kyiv. This is reported Financial Times.
The unilateral action comes amid Brussels' concern that Hungary will prevent the bloc from providing the guarantees the US needs to participate in the asset-freezing scheme, according to three people involved in the talks.
The government of Viktor Orbán, the EU's most pro-Russian leader, has sought to delay a decision on the asset freeze scheme until after the November 5 US presidential election.
But Brussels must begin work on any alternative in the next few weeks, as such a move would depend on the mandate, which expires at the end of the year.
The funds are intended for the financial stability of Ukraine, which, according to Kyiv and the IMF, will face a funding deficit of $2025 billion in 38. The country relies on foreign aid to keep functioning while Russia steps up attacks on its infrastructure.
According to a draft legal proposal seen by the FT, the EU will attract an unspecified number of billions in loans to Ukraine by the end of 2024. Such a move, an expansion of an existing aid program, would require only majority support, not unanimity, eliminating Budapest's veto power. The final figure could vary from 20 to 40 billion euros and will be set by the European Commission after consultations with member states, officials said.
"We can always act independently," said the representative of the EU. While the original scheme — involving the U.S. — remains Commission A's plan, officials say they need an alternative if Budapest retains its veto power until the U.S. election.
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