The US and the EU are finalizing the details regarding the allocation of $50 billion to Ukraine from frozen Russian assets, Bloomberg reports, citing its own sources.
Recently, the G7 countries decided to provide Ukraine with a $50 billion loan by the end of 2024, funded by frozen Russian assets. However, Deputy Head of the President’s Office, Iryna Mudra, stated that Ukraine still does not understand the mechanisms, conditions, and timing of when it will receive the funds from these assets.
“The US told the European Union that it will contribute $20 billion to a massive Group of Seven-led Ukraine aid package if the bloc tweaks its Russian sanctions regime as planned to make it more predictable,” wrote Bloomberg.
The newspaper says that even if the EU refuses or cannot change its sanctions policy, the US will still join the planned $50 billion aid package, albeit with a minor contribution.
The US and the EU initially agreed that each would allocate a similar amount of funds of about $20 billion until Washington began pushing for a longer-lasting sanctions regime from Europe to ensure revenue from the frozen assets, as currently, the extension of sanctions requires unanimous approval every six months, Bloomberg explains.
Journalists added that the EU is already working on updating its sanctions policy to allow the decision on extending asset freezes to be made every 36 months, as the US demands.
The bloc has also proposed contributing €35 billion from its collective budget if the US doesn’t join the loan. However, Germany, France, and Italy opposed increasing the EU’s contribution, while Hungary suggested postponing all decisions regarding frozen Russian assets until after the US presidential elections.
Final proposals from the G7 nations are expected to be made during the meeting on 25 October.
Earlier, Canada’s Finance Minister Chrystia Freeland expressed confidence that the global plan to finance Ukraine’s military efforts through Russian assets will soon be implemented.
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