At the summit on October 17-18, EU leaders are expected to discuss the bloc's share of the G7 loan package worth $50 billion for Ukraine, AP reports, UNN writes.
Details
According to AP, this week EU envoys were working on a proposal to provide Ukraine with a loan package worth up to 35 billion euros ($39 billion).
Discussion of the EU's share in the G7 loan package will be on the agenda of the summit of the bloc's leaders in Brussels on October 17-18
The EU loans are part of a plan by the Group of Seven to use the interest earned on some $250 billion worth of frozen Russian assets, most of which are held in Europe. These excess profits are estimated at around $4.5-5.5 billion a year.
Profit is at the heart of the G7 plan. The EU would have to provide up to $20 billion, the US $20 billion, and Canada, Japan, and the UK $10 billion together, for a total of $50 billion. The agreement, according to the publication, will expire at the end of the year, before the next US president takes office.
"Now, amid disagreement over how long the freeze on Russian assets should be guaranteed, the EU has decided to act on its own. Its offer of up to $39 billion in loans also accounts for almost all of the U.S. share," the newspaper notes.
"The EU rarely moves forward on international affairs without the US, especially on serious conflicts, but it hopes this decision will encourage others to move forward," the newspaper writes.
At the same time, the US, as the publication notes, wants to ensure that assets are frozen for at least three years to guarantee profits. But EU member Hungary insists that this should only happen at 6-month intervals.
The other 26 EU countries believe they need to act now because time is running out.
The publication notes that helping Ukraine militarily is "a challenge for Europeans." "They could not do it on their own and could not match the US advantage in transportation, logistics, and equipment, despite progress in building up their defense industry to supply weapons and ammunition," the publication says.
But the world's largest trading bloc, as noted, has economic power. "Since the start of the full-scale invasion, it has already provided Ukraine with about $132 billion. In a few weeks, it seems ready to provide tens of billions more, although it is not in the EU's DNA to act alone," the publication writes.
At the same time, the newspaper notes that the Biden administration announced on Wednesday that the United States would send Ukraine a large package of military aid, including cluster bombs and a number of missiles, artillery, and armored vehicles. A US official also said that "billions of dollars in aid will be coming in the coming months," the newspaper notes.