Washington, October 11 - The United States continues to express readiness to participate in a loan program for Ukraine, funded by revenues from frozen Russian assets, despite emerging difficulties within the European Union, as reported by the Financial Times.
The challenges stem from Hungary's position on the matter. Hungarian Finance Minister Mihály Varga announced on October 8 that Budapest is currently refraining from supporting the transition to a three-year freeze on Moscow's sovereign assets within the EU, which contrasts with the current system requiring semi-annual extensions. The U.S. is reportedly willing to consider a $50 billion loan to Kyiv through the G7 group, contingent on guarantees regarding the continued freezing of assets in the near future.
The Financial Times notes that Hungary's stance has prompted the European Commission to develop an alternative proposal to raise €35 billion from the EU's general budget, which would require approval from a majority of member states rather than all. This new plan could facilitate loans to Kyiv without U.S. involvement.
However, according to FT, Washington may reconsider its asset freezing guarantees to maintain Western unity. An announcement regarding U.S. participation in the loan program could be made before the presidential elections in November.
Earlier, the leadership of the World Bank assured that the new fund being established to support Ukraine will not be linked to frozen Russian assets or their revenues.