The European Union (EU) is working on an alternative €20 billion aid plan for Ukraine to avoid Hungary’s objections to a new financial aid package for the coming years, the Financial Times (FT) reported, picked up by EFE on Wednesday. . .

According to the British newspaper, citing officials involved in the plan, Brussels will use the debt structure to contribute to the Ukrainian budget after the Hungarian government led by Viktor Orbán opposed the EU bloc’s proposal to unlock 50 billion euros for Ukraine over four years. Agerpres notes.

Recently, Hungarian Prime Minister Viktor Orbán called Russia’s new invasion of Ukraine a “military operation”, echoing the expression used by the Kremlin, AFP reports.

Among the options being considered, a debt-financed model looks set to gain traction if Orbán chooses to uphold his veto at a European summit on the program in February.

According to the sources cited, member states will provide EU budget guarantees for the European executive to borrow up to 20 billion euros on capital markets for Kyiv next year, although the final amount will be decided according to needs. Ukraine.

It’s a similar plan to one launched in 2020 to allow the European executive to provide up to €100 billion for job-saving programs during the coronavirus pandemic.

The scheme does not need unanimity from the EU’s 27 member states, as guarantees are not required from all member states, although some, such as Germany or the Netherlands, will need parliamentary approval.

The anonymous source said that technically the plan would have no problem moving forward, but politically it would be “more difficult.”

According to the FT, if European leaders approve the plan at a summit on February 1, 2024, the International Monetary Fund (IMF) will be guaranteed the next $900 million in funding.

One possible drawback of the plan, compared to the original plan, is that it would be limited to loans and would not include direct aid, although it could still be provided unilaterally by states.