The EU will provide Ukraine with up to €40B in new loans by the end of the year, regardless of the US’ decision.

The FT writes that unilateral actions are taking place against the background of Brussels’ concern that Hungary will prevent the bloc from providing the guarantees the US needs to participate in the frozen asset-secured loan plan. Therefore, the EU is considering providing loans (also secured by Russian assets) within the framework of the existing financial support package, which expires at the end of the year. This scheme increases the bloc’s total borrowing and EU budgetary support. An alternative legislative proposal envisages providing Ukraine with at least $20B by the end of the year, which was supposed to come from Washington following the initial G7 proposal.

This step would require only majority support, not unanimity, which would eliminate Budapest’s veto as an obstacle. The final amount could range from €20 to €40B and will be set by the European Commission after consultation with member states.

While the initial US support scheme remains Plan A, officials say they need an alternative in the event that Budapest retains its veto power until the US presidential election.