EU countries are preparing 40 billion euros of additional credit assistance for Ukraine by the end of this year, regardless of the USA.
Points of attention
- The EU plans to allocate up to 40 billion euros in financial aid to Ukraine by the end of this year, independent of the USA.
- The financial support will be derived from profits of the frozen assets of the Russian Federation, aiming to combat Ukraine's projected financial deficit of $38 billion next year.
- The expansion of the aid program will not require unanimous agreement from all EU countries, bypassing veto power and ensuring majority support.
- The final amount of aid could range from 20 to 40 billion euros, to be finalized after consultations with member states of the European Commission.
- Concerns have been raised regarding the potential blocking by Hungary in providing necessary guarantees for USA participation in the aid scheme.
The EU decided to provide Ukraine with its own financial assistance
It is noted that the funds are planned to be allocated within the framework of the proposal of the G7 countries regarding the use of profits from the frozen assets of the Russian Federation.
Immediately, three interlocutors of the publication, who took part in the negotiations, noted that in Brussels they are concerned about the possible blocking by Hungary of the provision of guarantees necessary for the participation of the USA in the scheme for the use of profits from the frozen assets of the Russian Federation to help Ukraine.
The government of the pro-Russian Prime Minister of Hungary, Viktor Orbán, has already tried to postpone the decision on the adoption of the scheme for the use of profits from the frozen assets of the Russian Federation until the time of the presidential elections in the USA on November 5.
However, work on an alternative plan in the EU should begin in the coming weeks, as the initiative depends on powers that expire at the end of the year.
The funds will be directed to support the financial stability of Ukraine, which, according to the IMF's forecast, will already experience a financing deficit of $38 billion next year.
How much money does the EU plan to allocate to Ukraine?
The draft of the legal proposal, which the journalists of the publication state, provides for an unspecified number of billions of euros in the form of a series of loans to Ukraine by the end of this year.
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.
