The US and the EU have almost reached an agreement on $50 billion in aid to Ukraine using Russian assets, reports UNN citing Bloomberg.
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The U.S. has told the European Union it will contribute $20 billion to a massive Group of Seven-led aid package for Ukraine if the bloc changes its sanctions regime against russia as planned to make it more predictable.
Even if the EU does not amend its sanctions - which would increase the time before member states consider the measures - the U.S. would still contribute to the planned $50 billion package, but in a smaller amount, according to people familiar with EU deliberations.
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The publication recalls that in June, the G-7 agreed in principle to provide Ukraine with a non-refundable loan to be repaid using profits from frozen assets of the Russian central bank amounting to about 280 billion dollars, most of which are in Europe.
The U.S. official said Washington fully intends to participate in the $50 billion commitment for Ukraine and that the extent of its contribution will depend on what assurances the EU can give that Russian assets will remain immobilized.
The U.S. and EU initially agreed to provide similar amounts of about $20 billion each until Washington demanded a longer sanctions regime from Europe to ensure that windfall profits remain available, as it requires unanimous renewal every six months.
The EU is in the process of adjusting its immobilized asset sanctions so that they need only be renewed every 36 months, according to a U.S. request. The bloc has also offered to contribute up to 35 billion euros ($39 billion) from its collective budget if the U.S. does not join the loan.
This latest EU proposal to increase its share was rebuffed by members of the G-7 bloc - Germany, France and Italy - during a meeting of EU envoys in Brussels on Wednesday, said the people, who spoke on condition of anonymity.
The European Commission, the EU's executive body, emphasized that the goal was to ensure U.S. participation by amending the sanctions regime so that the plan remains a G-7 initiative, according to people. The Commission called on member states to finalize sanctions reform, which requires unanimity.
Hungary, which has often delayed or blocked EU efforts to support Ukraine, has proposed delaying any decision on immobilizing Russian assets until after the Nov. 5 U.S. election.
The commission told member states that the U.S. could join the initiative even after the election, but added that the bloc must complete the legislative work, which also requires approval from the European Parliament, by the end of October, the people said.
G-7 countries are expected to finalize their commitments at a ministerial meeting on Oct. 25, according to one person. EU leaders are due to meet Oct. 17-18, when support for Ukraine is likely to be discussed.
When the new mechanism is put in place, the EU will end its current process of using proceeds from frozen Russian assets to finance military aid to Ukraine.
The new loan, which is expected to be disbursed in various tranches starting in early 2025, will be in addition to other aid packages, including the EU's €50 billion financial plan consisting of grants and loans from 2024 to 2027, the publication adds.