Media: EU ready to step in if US withdraws from $50 billion Ukraine loan

The European Union is prepared to step in financially if the United States withdraws from a $50 billion loan agreement intended to aid Ukraine, a top Polish official said.

Paweł Karbownik, Poland's deputy finance minister, expressed concerns that former US President Donald Trump might pull out of the deal, which was negotiated among G7 countries to support Ukraine in its conflict with Russia, Caliber.Az reports citing foreign media.

Speaking at an event marking Poland's upcoming presidency of the EU Council, Karbownik emphasized the need for Trump to clarify his stance as soon as possible to allow the EU to develop a contingency plan. The agreement, reached in October, involves contributions from the US, the EU, and other G7 nations, with both Brussels and Washington committing $20 billion each, while the United Kingdom, Canada, and Japan provide the remainder.

Despite initial concerns over the loan’s financial sustainability, the Biden administration ultimately pledged to contribute, aiming to secure continued US support for Ukraine amidst political uncertainty. This uncertainty has been heightened following the dismissal of a request by Speaker of the US House of Representatives, Mike Johnson, to include an additional $24 billion for Ukraine in an upcoming spending bill, with Johnson citing the change in US leadership as a reason for postponing the decision.

If the worst-case scenario materializes, Karbownik assured that the EU would ensure the $50 billion loan reaches Ukraine, even without US involvement. European Commission President Ursula von der Leyen had previously indicated that the EU could contribute up to €35 billion if the US fails to fulfill its share. Moreover, the EU could leverage its €1.2 trillion seven-year budget as collateral to increase its financial commitment.

However, the EU faces constraints due to its own budgetary rules, which prevent it from extending the loan beyond the year-end deadline. The final decision on the EU's contribution is expected by the end of December.

By Vafa Guliyeva