(Kyiv) – The European Union is preparing to provide financial support to Ukraine if the United States pulls out of its $50 billion loan commitment, a critical deal designed to help Ukraine defend itself against Russian aggression. Poland’s Deputy Finance Minister, Paweł Karbownik, announced this on December 4, 2024, during an event highlighting Poland’s upcoming presidency of the EU Council.
The $50 billion loan agreement, negotiated over several months and finalized before the November 2024 U.S. presidential election, was a collaborative effort by G7 nations. The U.S. and EU each pledged $20 billion, while the UK, Canada, and Japan contributed the remaining amount. The loan is structured to be repaid using interest generated from over €200 billion in immobilized Russian assets held in Western-controlled accounts.
Karbownik expressed concerns that U.S. President Donald Trump might withdraw from the agreement, urging clarity on the issue. He emphasized the importance of a contingency plan should the U.S. decide to back out.
“We need to know where the U.S. stands on this critical matter,” Karbownik said, warning of the potential implications for Ukraine’s financial and military support.
The uncertainty comes in the wake of a decision by U.S. Speaker of the House Mike Johnson to exclude a $24 billion Ukraine aid package from an upcoming spending bill. Johnson justified the move, saying, “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.”
Johnson has previously been associated with delays in approving U.S. aid to Ukraine. A six-month delay earlier in the conflict enabled Russia to gain strategic advantages on the battlefield.
The EU is now considering stepping up to fill the gap if the U.S. reneges on its commitment. Poland’s leadership in the EU presidency next year is expected to play a crucial role in shaping Europe’s response to the situation.
Karbownik’s remarks highlight growing concerns in Europe about shifting U.S. policy on Ukraine. He reiterated the need for immediate action, should President Trump follow through on the rumored withdrawal from the funding agreement.
Funding Breakdown Table
| Contributor | Pledged Amount (USD Billion) | Role in Loan Agreement |
|---|---|---|
| United States | 20.0 | At Risk of Withdrawal |
| European Union | 20.0 | Likely to Cover U.S. Share if Necessary |
| United Kingdom | 5.0 | G7 Contributor |
| Canada | 3.0 | G7 Contributor |
| Japan | 2.0 | G7 Contributor |
