EU Prepared to Cover Shortfall if US Withdraws from $50bn Ukraine Loan, Says Polish Official
The EU might step in to save a $50 billion G7 loan to Kiev in the event that the US pulls out of the arrangement. Read Full Article at RT.com.
TroibNews 
Earlier this year, G7 countries made an agreement to loan funds to Kiev, backed by frozen Russian sovereign assets.
The EU is prepared to assist Kiev’s war efforts and mitigate the impact of a possible US withdrawal from a $50 billion G7 loan deal. This comes amid rising uncertainty regarding Washington’s commitments with Donald Trump set to take office, PMG reported on Thursday.
Polish Deputy Finance Minister Pawel Karbownik expressed concerns during an event that coincided with Warsaw’s upcoming presidency of the EU Council, according to the outlet.
“There is a risk that Donald Trump will pull out of the $50 billion agreement,” Karbownik stated, urging the US president-elect to clarify his position so that the EU could develop a contingency plan.
Following the escalation of the Ukraine conflict in February 2022, the US and its allies froze about $300 billion in assets belonging to the Russian central bank. In June, G7 nations committed to a $50 billion loan for Kiev, utilizing the frozen Russian assets as collateral to assist in acquiring weapons and reconstructing damaged infrastructure.
Karbownik's comments followed US House Speaker Mike Johnson’s dismissal on Wednesday of President Joe Biden’s proposal to include an additional $24 billion in aid to Ukraine in a government funding bill.
“We have a newly elected president and we’re going to wait and take the new commander-in-chief’s direction on all of that,” Johnson remarked. “So I don’t expect any Ukraine funding to come up now.”
According to the G7 agreement finalized in October, both the US and EU are set to contribute $20 billion each, while the UK, Canada, and Japan will provide the remaining funds. The loan is intended to be repaid through the interest generated from the immobilized Russian sovereign assets.
However, the potential withdrawal of Trump could jeopardize the agreement, compelling the EU to act independently, the outlet pointed out.
Karbownik indicated that in a worst-case scenario, the bloc will “make provisions as the EU to ensure that the $50 billion goes to Ukraine regardless of Trump.”
European Commission President Ursula von der Leyen previously mentioned that the EU could independently provide up to €35 billion, leveraging the bloc's €1.2 trillion seven-year budget as collateral.
Moscow has consistently accused the West of “stealing” its funds and has cautioned that using the frozen reserve would be illegal and create a dangerous precedent.
Last month, Russian Finance Minister Anton Siluanov vowed to implement retaliatory measures that would echo the West’s actions. He noted that Russia had likewise frozen the assets of Western investors and financial entities, asserting that “the income from these assets will also be used.”
Thomas Evans contributed to this report for TROIB News
The EU is prepared to assist Kiev’s war efforts and mitigate the impact of a possible US withdrawal from a $50 billion G7 loan deal. This comes amid rising uncertainty regarding Washington’s commitments with Donald Trump set to take office, PMG reported on Thursday.
Polish Deputy Finance Minister Pawel Karbownik expressed concerns during an event that coincided with Warsaw’s upcoming presidency of the EU Council, according to the outlet.
“There is a risk that Donald Trump will pull out of the $50 billion agreement,” Karbownik stated, urging the US president-elect to clarify his position so that the EU could develop a contingency plan.
Following the escalation of the Ukraine conflict in February 2022, the US and its allies froze about $300 billion in assets belonging to the Russian central bank. In June, G7 nations committed to a $50 billion loan for Kiev, utilizing the frozen Russian assets as collateral to assist in acquiring weapons and reconstructing damaged infrastructure.
Karbownik's comments followed US House Speaker Mike Johnson’s dismissal on Wednesday of President Joe Biden’s proposal to include an additional $24 billion in aid to Ukraine in a government funding bill.
“We have a newly elected president and we’re going to wait and take the new commander-in-chief’s direction on all of that,” Johnson remarked. “So I don’t expect any Ukraine funding to come up now.”
According to the G7 agreement finalized in October, both the US and EU are set to contribute $20 billion each, while the UK, Canada, and Japan will provide the remaining funds. The loan is intended to be repaid through the interest generated from the immobilized Russian sovereign assets.
However, the potential withdrawal of Trump could jeopardize the agreement, compelling the EU to act independently, the outlet pointed out.
Karbownik indicated that in a worst-case scenario, the bloc will “make provisions as the EU to ensure that the $50 billion goes to Ukraine regardless of Trump.”
European Commission President Ursula von der Leyen previously mentioned that the EU could independently provide up to €35 billion, leveraging the bloc's €1.2 trillion seven-year budget as collateral.
Moscow has consistently accused the West of “stealing” its funds and has cautioned that using the frozen reserve would be illegal and create a dangerous precedent.
Last month, Russian Finance Minister Anton Siluanov vowed to implement retaliatory measures that would echo the West’s actions. He noted that Russia had likewise frozen the assets of Western investors and financial entities, asserting that “the income from these assets will also be used.”
Thomas Evans contributed to this report for TROIB News
