The head of the committee explained why the $50 billion loan from the EU and the US should be stretched over two years
Kyiv • UNN
The head of the Budget Committee, Roksolana Pidlasa, explained the need to distribute the $50 billion loan from the EU and the US over two years. This is due to the one-time nature of the payment and the lack of new agreements for the future.
The $50 billion loan from the EU and the US should be spread over 2 years, because this money is actually a "one-time" and will probably come in 2025. There are no new similar agreements for the future. If most of the money is spent in one year, Ukraine may face the problem of financing non-military expenditures in 2026. Roksolana Pidlasa, MP and head of the parliamentary committee on budget, wrote about this on Facebook, UNNreports .
Details
She wrote that according to the European Commission's official proposal, if other countries give more, the EU will reduce its contribution from 35 billion euros (39 billion dollars) so that the total amount of aid to Ukraine will be exactly 50 billion dollars.
She also recalled that the 20-20-10 formula has been discussed for a long time, where the EU provides $20 billion, the US $20 billion, and the UK, Japan, and Canada add $10 billion. These funds are returned to creditors at the expense of profits from russian assets.
"In order to allocate its $20 billion, the US expects the EU to extend the freeze on Russian assets to at least 3 years," Podlasa wrote on Facebook.
She noted that the freeze is currently renewed every 6 months, and Hungary has a veto.
In fact, Hungary does not agree to a 3-year freeze either. And this is the key problem. Therefore, the US is now considering options to allocate money without congressional approval, despite the fact that assets in the EU are not frozen for a longer period. One of the options being considered is to allocate less than $20 billion. This is not important for us. The main thing is that the puzzle should be "$50 billion". I am concerned about something else. This money is actually a "one-off" - it will most likely come in 2025, and there are no new similar agreements for the future. If we spend most of it in one year, in 2026 we may face the problem that there is nothing to finance non-military expenditures. That is why I advocate the position that $50 billion should be spread over 2 years
Recall
Hungary has stalled the final agreement on a $50 billion G7 loan to Ukraine until after the US presidential election, postponing its decision on the timing of the renewal of EU sanctions against russia.
Euronews reported that the European Union countries have given the green light to an unprecedented plan to provide a 35 billion euro loan to support Ukraine's war-torn economy, using immobilized assets of the russian central bank as collateral.
Add
According to the G7 plan, windfall profits generated by the assets will be used to gradually repay the amount of money each ally will lend to Ukraine. If these profits are no longer available, the West will have to pay the bills.
Initially, it was assumed that the EU and the US would contribute to the loan in equal installments of 18 billion euros (20 billion US dollars) each, but the lack of specifics from Washington forced Brussels to sharply increase its share to 35 billion euros.
The bloc's contribution could be reduced if the United States, Canada, the United Kingdom, and Japan end up making larger pledges. Australia, which is not part of the G7, could also contribute.
