The loan, structured as "limited recourse" financing, would only require repayment if Russia eventually pays war reparations, with Brussels reserving the right to use immobilized Russian assets to cover the debt.
European unity faces dual threats as Italy joins Belgium in opposing a $220 billion loan plan using frozen Russian assets and territorial concessions remain disputed in peace negotiations.
Brussels is exploring a unilateral €40bn ($46 bn) loan package for Ukraine, circumventing potential Hungarian objections to a G7 plan involving frozen Russian assets.
The plan could provide funds for arms & budgets if US aid stalls, though it may be "more radical than proposals discussed in the European Union," the Guardian reports.