The EU is discussing using funds from the bloc’s budget to guarantee a loan to Ukraine but is leaning toward the US proposal.

The European Commission is deliberating the ​​use of future interest from frozen Russian assets to fund a multi-billion-dollar loan to Ukraine and guaranteeing this money through a seven-year EU budget commitment of €1.2T, writes Politico.

The governments of all EU countries must unanimously agree to amend the bloc’s seven-year budget, and the European Parliament must green light the move. The implementation of this idea would be a serious step forward from the established EU plan to use most of the €3B in annual profit from Russian assets to purchase weapons for Ukraine. Western fears are that the frozen assets may be returned to the Kremlin in a possible post-war settlement, so it is necessary to have alternative ways of securing the loan.

At the same time, the finance ministers from the Eurogroup countries, at a virtual meeting, confirmed their readiness to provide financial assistance to Ukraine. They mainly discussed the American plan, in which the US or all the G7 countries will provide Ukraine with a $50B loan, covered by income from the frozen Russian assets.