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UKRAINE: German Offic.-US Participation In Loan Could See EU Reduce Contribution

UKRAINE
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A German gov't official has claimed that, regarding the proposed G7 USD50bn loan for Ukraine if the US participates the EU's share of contributions may be reduced. The provision of the loan, which intends to use windfall profits from frozen Russian assets held in the West as collateral, remains subject to political vagaries within the EU. The initial plan of the US and EU providing USD20bn apiece, topped up by an additional USD10bn from Canada, Japan and the UK jointly, seemed to be scuppered by Budapest. 

  • Washington said that for it to commit the EU must extend the period that it holds frozen Russian assets to three years (from the current rolling six-months). Hungary's veto made this impossible. In response, the EU said it would top up its contribution to EUR35bn partly paid from the EU's budget. This could not be vetoed by Hungary as it only required a qualified majority vote.
  • However, reports late last week suggested that the US could participate even without the commitments on holding frozen Russian assets for longer.
  • Speaking in the Italian Senate earlier today, PM and 2024 G7 president Giorgia Meloni said that her gov't will keep working to approve an agreement on the provision of a loan as soon as possible.
  • Separately the German gov't official claims that at the 17 Oct EUCO summit German Chancellor Olaf Scholz will call on other EU member states to look at further military support for Kyiv. 

 

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A German gov't official has claimed that, regarding the proposed G7 USD50bn loan for Ukraine if the US participates the EU's share of contributions may be reduced. The provision of the loan, which intends to use windfall profits from frozen Russian assets held in the West as collateral, remains subject to political vagaries within the EU. The initial plan of the US and EU providing USD20bn apiece, topped up by an additional USD10bn from Canada, Japan and the UK jointly, seemed to be scuppered by Budapest. 

  • Washington said that for it to commit the EU must extend the period that it holds frozen Russian assets to three years (from the current rolling six-months). Hungary's veto made this impossible. In response, the EU said it would top up its contribution to EUR35bn partly paid from the EU's budget. This could not be vetoed by Hungary as it only required a qualified majority vote.
  • However, reports late last week suggested that the US could participate even without the commitments on holding frozen Russian assets for longer.
  • Speaking in the Italian Senate earlier today, PM and 2024 G7 president Giorgia Meloni said that her gov't will keep working to approve an agreement on the provision of a loan as soon as possible.
  • Separately the German gov't official claims that at the 17 Oct EUCO summit German Chancellor Olaf Scholz will call on other EU member states to look at further military support for Kyiv.