EU plans to provide up to €40 billion to Ukraine without US
The EU will provide Ukraine with €40 billion in frozen Russian assets (Getty Images)
The EU is preparing to provide new funding by the end of the year, regardless of US participation. The money will be allocated according to the G7 proposal to use frozen Russian assets to assist Kyiv, citing the Financial Times.
According to three people involved in the negotiations, these unilateral actions are being taken amid Brussels' concerns that Hungary will obstruct the bloc from providing the guarantees necessary for US participation in the asset freeze scheme.
The government of Viktor Orbán, the most pro-Russian leader in the EU, has attempted to delay a decision on the asset freeze scheme until after the US presidential election on November 5.
However, Brussels must begin work on any alternative in the coming weeks, as such a move would depend on powers that expire at the end of the year.
According to Kyiv and the IMF, the funds are intended to ensure Ukraine's financial stability, which will face a $38 billion funding shortfall in 2025. The country relies on foreign aid to keep functioning as Russia intensifies its attacks on Ukraine's infrastructure.
According to a draft legal proposal seen by the FT, the EU will raise an unspecified number of billions in loans for Ukraine by the end of 2024. This move, an expansion of the existing aid program, would require only majority support rather than unanimity, removing Budapest's veto power. The final amount could range between 20 to 40 billion euros and will be set by the European Commission after consultations with member states, officials said.
"We could always go on our own," an EU representative said. While the initial scheme involving the US remains Plan A, officials argue that an alternative is necessary if Budapest maintains its veto until the US election.
