The European Commission is set to propose a $50 billion loan package to support Ukraine, aiming to finalize legislative work by the year’s end, according to Economy Commissioner Paolo Gentiloni. The plan, which leverages windfall profits from frozen Russian assets, will be discussed by Group of Seven finance and central bank chiefs in Rio de Janeiro next week, Gentiloni announced on Tuesday, July 16.
“The urgency of this process cannot be overstated,” Gentiloni said ahead of a European Union finance ministers' meeting in Brussels. “Given the upcoming G-7 meeting, the commission is working intensively to present the proposal as soon as possible, ideally very soon.”
The EU has been exploring ways to bypass opposition from Hungary, the bloc’s most pro-Russia member, which currently holds the rotating presidency. Hungary has impeded critical military aid for Kyiv as Ukraine’s military continues to fend off Russian assaults.
Earlier this month, Hungarian Prime Minister Viktor Orbán surprised Western allies by visiting Moscow to meet with Russian President Vladimir Putin, undermining efforts to maintain a united front on Ukraine.
The European Commission is developing a mechanism guaranteed through headroom in the European budget, which must be implemented by the end of the year.
“Continuing support for Ukraine is a crucial element of this new loan package,” Gentiloni emphasized. “We want to send a clear signal that G-7 countries and other international partners will support Ukraine for as long as necessary.”
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