EU states won't be directly involved in $50 billion loan for Ukraine, Italian PM says

Italian Prime Minister Giorgia Meloni talks to the media at the end of a European Union leaders summit at the European Council headquarters on Feb. 10, 2023, in Brussels, Belgium. (Thierry Monasse/Getty Images)

EU members will not be for now directly involved in a $50 billion loan for Ukraine, as they will instead focus on developing the guarantee mechanism, Italian Prime Minister Giorgia Meloni said on June 15.

The loan, which was announced during a G7 summit%20leaders,billion%20in%20frozen%20Russian%20assets.) on June 13 with the pledge to deliver it to Ukraine by the end of the year, is backed by revenues from frozen Russian assets.

"The loan of about $50 billion has already been announced (and will) be provided by the United States, as well as Canada, the United Kingdom, and probably Japan, within the limits of its constitutional constraints," Meloni said at a press conference at the end of the summit.

"Currently, European nations are not involved in this loan, also considering the fact that the assets are all mobilized in Europe," she said, adding that EU members will instead focus on providing a guarantee mechanism for repaying the loan.

Western countries have frozen $300 billion in Russian assetsat the start of the full-scale war, with roughly two-thirds being held in Europe.

The technical aspects of the loan are yet to be decided by EU finance ministers, Meloni added. During the summit, G7 leaders agreed to launch the Extraordinary Revenue Acceleration (ERA) mechanism to deliver the loan.

An American official told Reuters that Washington was authorized by Congress to cover $50 billion but hopes that other countries will contribute as well. Canada said it is ready to provide $5 billion for the loan.