The NYT notes that officials from the US and the EU are trying to secure a $50B loan for Ukraine by the end of the year. A decision should be reached before the presidential elections in the US, which Donald Trump has a high chance of winning. However, differences in the legal systems of the US and Europe have complicated the loan’s structure.
The EU, where most Russian assets are stored, must renew its sanctions targeting Russia every six months. This has led the White House to believe that the loan is associated with a certain amount of risk. And unless the EU changes legislation governing its sanctions, Congress must approve additional funding for Ukraine to account for this risk.
However, providing additional funds to Ukraine is logistically and politically unlikely, so the loan remains in limbo. Hungary is blocking changes to the EU’s sanctions policy and is waiting for the US elections. Therefore, the EU will not be able to fulfill the conditions necessary for the US to advance the G7 plan.