Prospect of Harris’s victory in US slows down provision of $50 billion loan for Ukraine - Politico
The growing popularity of US presidential candidate Kamala Harris has negatively affected the prospects for a quick agreement on the terms of providing a $50 billion loan to Ukraine.
As Censor.NET informs, Politico writes about it.
Before Joe Biden dropped out of the presidential race, the prospect of a Donald Trump presidency prompted diplomats on both sides of the Atlantic to put aside differences to complete the loan process by the end of the year.
At the same time, the prospect of Harris winning took some of the urgency out of the issue. Officials feared that Trump would terminate the loan agreement and cut aid to Ukraine.They believe that the Democratic nominee is unlikely to do such a thing, and that she actually has a chance to win the presidency.
Two EU officials familiar with the negotiations said a split between the EU and the US over the details of the loan, which would be repaid with profits from the investment of frozen Russian assets, was becoming increasingly apparent.
"The whole idea was to protect (aid to Ukraine. - Ed.) from Trump, but now the situation with Harris is different," said one of the officials.
The loan was agreed at the level of the G7 group of governments in June, but the EU and the US continue to disagree on the details.
The vast majority of assets frozen after a full-scale Russian invasion are located in Europe, so the US is demanding that the EU guarantee that they will remain frozen until Moscow pays post-war reparations to Ukraine. That way, the US won't be on the hook for loan repayments if the assets are unfrozen.
However, it is difficult for the EU to comply with this requirement, as it requires unanimity and several European countries oppose it.
According to the publication, the talks between EU and US officials, which took place on Monday, ended without an agreement because the American delegation insisted on an indefinite freeze on Russian assets.
Also, a discussion between 27 EU ambassadors scheduled for Wednesday on amending the sanctions rules was canceled at the last minute due to the unpreparedness of the European Commission, EU diplomats said.
Rules governing the EU's current sanctions, which must be renewed every six months, allow one country to unfreeze assets, which Washington says puts credit at risk. This is important because the US is required to involve Congress in any transaction that puts taxpayers' money at risk, which could drag the process beyond the end-of-year deadline.
