EU Prepared to Act if US Exits G7’s $50B Ukraine Loan Plan

Newly elected U.S. House Speaker Mike Johnson has indicated that Congress will not address Ukraine funding until the new presidential administration takes office. “We have a newly elected president, and we’re going to wait and take the new commander-in-chief’s direction on all of that, so I don’t expect any Ukraine funding to come up now,” Johnson stated.

In October, after months of intense negotiations, G7 countries finalized an agreement to provide Ukraine with a $50 billion loan. This loan is structured to be repaid using interest generated from more than €200 billion in immobilized Russian assets currently under Western control. The deal, which was reached prior to the U.S. presidential election on November 5, outlines that the United States and the European Union would each contribute $20 billion, with the remaining amount to be covered by the United Kingdom, Canada, and Japan.

Speaker Johnson’s remarks come amid ongoing political division in the United States over Ukraine support. Johnson has already dismissed outgoing President Joe Biden’s proposal to include $24 billion in Ukraine-related aid in a government spending bill that Congress must pass by December 20.

Initially, the U.S. voiced concerns about the economic feasibility of the $50 billion loan. However, the Biden administration eventually pledged its $20 billion share, reportedly aiming to pressure former President Donald Trump, now reelected, into maintaining U.S. support for Ukraine.

The uncertainty surrounding Trump’s plans for Ukraine has prompted EU leaders to call for clarity. Karbownik, a European official involved in the negotiations, urged Trump to reveal his stance promptly to allow the EU sufficient time to establish a contingency plan if U.S. support is withdrawn.

“If the worst-case scenario happens,” Karbownik warned, “we’ll make provisions as the EU to ensure that the $50 billion goes to Ukraine regardless of Trump.”


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