EU Plans up to €40 Billion in New Loans for Ukraine Aiming to Bypass Potential Hungarian Veto

The EU is preparing to provide Ukraine with new loans worth up to €40 billion by the end of the year, regardless of the participation of the US, writes the Financial Times.

According to a draft legal proposal seen by the FT, the EU will provide Ukraine with an unspecified number of billions in loans until the end of 2024.

Brussels is taking such a step due to fears that Hungary could disrupt the G7 plans to use frozen Russian assets to help Kyiv. Such a move to expand the existing aid program would require only majority support, not unanimity, removing Budapest's veto power.

According to the publication, the final figure may range from €20 to €40 billion and will be set by the European Commission after consultations with member states.

Although the original plan involving the US is still on the table, officials indicate that they need a backup option if Budapest does not lift its veto.

Previously in June, the G7 leaders have publicly confirmed an agreement to provide Ukraine with a $50 billion loan by the end of the year, with repayment expected from the interest generated by approximately $300 billion in frozen Russian assets. The loan agreement aims to strengthen Ukraine’s financial stability in the face of Russian invasion.