European commission urgently plans $50 bln loan proposal for Ukraine
The EU Commissioner for Economy, Paolo Gentiloni (Photo: Getty Images)
The EU Commissioner for Economy, Paolo Gentiloni reports that the European Commission plans to "very soon" propose a package of loans amounting to $50 billion secured against frozen Russian assets to support Ukraine, aiming to complete legislative work by the end of the year.
"The initial moment of this process is very urgent," he said before a meeting of EU finance ministers in Brussels. "That is why, and also because of the G7 summit next week, the commission is working intensively to bring the proposal to discussion as soon as possible."
The EU is seeking ways to bypass opposition to supporting Ukraine from Hungary, the most pro-Russian country in the EU, currently holding the bloc's presidency. Budapest has blocked billions of euros of urgently needed military aid for Kyiv.
Hungarian Prime Minister Viktor Orbán also shocked Western allies striving to create a united front for Ukraine when he traveled to Moscow earlier this month to meet with Vladimir Putin.
The European Commission is working on a mechanism guaranteed by a reserve in the European budget, but this is only possible until the end of the year.
"Continuous support for Ukraine is one of the most important features of this new loan package, as we want to send a clear signal that G7 countries and other countries worldwide will continue to support Ukraine for as long as necessary," added Gentiloni.
$50 billion loan
EU countries plan to provide up to 60% of the necessary funds for a $50 billion loan to Ukraine.
Recall that the leaders of the "Group of Seven" agreed at a summit in Italy in June to provide Ukraine with a $50 billion loan from the proceeds of Russian assets frozen in Western countries since the beginning of the full-scale war in Ukraine. The funds are intended to be transferred to Ukraine by the end of 2024.
