EU Plans to Raise Up to €40bn in Loans for Ukraine Without US

The unilateral push comes amid concern in Brussels that Hungary will prevent the bloc from delivering safeguards that the US needs for it to participate in the frozen asset scheme, according to three people involved in the talks, the Financial Times reports.

The government of Hungarian PM Viktor Orban, the EU’s most pro-Russia leader, has sought to delay a decision on the frozen assets scheme until after the US presidential election on November 5.

But Brussels must start work on any alternative within the next few weeks since such a move would rely on powers that expire at the end of the year.

According to a draft legal proposal, the EU will raise an unspecified number of billions in loans to Ukraine by the end of 2024

“It is urgent to adopt the proposals before end October, so that the Union loan can be released before the end of 2024 for future disbursements in tranches,” the proposal said.

Such a move, expanding an existing aid program, would need just majority support rather than unanimity, removing Budapest’s veto power.