EU ready to cover $50 bn Ukraine loan if US withdraws, says Polish minister

Poland's deputy finance minister stated that the European Union is ready to compensate financially if the US pulls out of G7's Ukraine loan backed by proceeds from frozen Russian assets.

Dec 5, 2024 - 10:00

EU ready to cover $50 bn Ukraine loan if US withdraws, says Polish minister

Ukrainian soldiers from the 13th Brigade of the National Guard fire artillery in their fighting position. Illustrative image. Photo via Eastnews.ua.

The European Union is preparing to step in financially if the US withdraws from the $50 billion loan agreement meant to support Ukraine in its fight against Russia. This statement was made by Poland’s Deputy Finance Minister Paweł Karbownik on 4 December 2024, during an event marking Poland’s upcoming presidency of the Council of the EU, according to Politico.

The deal is structured to help Ukraine with its ongoing fight against Russia’s aggression by providing the country with financial support. The loan was designed to be repaid with interest derived from more than €200 billion of immobilized Russian assets held in Western-controlled accounts.

Karbownik warned that “there is a risk that [US President] Donald Trump will pull out of the $50 billion agreement.”

The Polish official urged Trump to clarify his stance on Ukraine funding soon, so the EU can prepare a contingency plan if needed.

The $50 billion loan agreement was negotiated over several months and finalized before the November 2024 US presidential election. The deal initially agreed upon by the G7 countries involved the US and EU each committing $20 billion, with the UK, Canada, and Japan contributing the remainder. Initially, the US had expressed concerns about the financial viability of the loan, but the Biden administration eventually pledged its $20 billion share.

The statement comes after US Speaker of the House of Representatives Mike Johnson dismissed a request from the outgoing Biden administration to include $24 billion in Ukraine-related aid in an upcoming spending bill.

On 4 December, Johnson stated, “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 is known as one of the US Republican leaders who previously facilitated a six-month delay in approving US aid for Ukraine, which allowed Russia to take the initiative and gain ground faster.

Related:

You could close this page. Or you could join our community and help us produce more materials like this.

We keep our reporting open and accessible to everyone because we believe in the power of free information. This is why our small, cost-effective team depends on the support of readers like you to bring deliver timely news, quality analysis, and on-the-ground reports about Russia's war against Ukraine and Ukraine's struggle to build a democratic society.

A little bit goes a long way: for as little as the cost of one cup of coffee a month, you can help build bridges between Ukraine and the rest of the world, plus become a co-creator and vote for topics we should cover next. Become a patron or see other ways to support.

Become a Patron!