EU To Go Into Debt For Ukraine

Reuters: EU Commission Working on Proposal for Joint Borrowing to Help Finance Ukraine - Sources 

BRUSSELS (Reuters) -The European Commission is considering new joint debt issuance by the 27-nation bloc, two EU officials said, to cover Ukraine's liquidity gap of 15 billion euros ($15.9 billion) over the next three months, though Germany is sceptical to the idea. 

A Commission proposal is to be published on May 18, one EU official said. The new joint EU borrowing, if agreed, could be based on the EU's SURE scheme for financing unemployment benefits during the COVID-19 pandemic, officials said. 

This would mean that Ukraine would get very cheap loans from the bloc, and EU governments would need to provide guarantees that the joint borrowing would be repaid. 

"It is one of the models under consideration, but nothing has been decided yet," one senior EU official said.  

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Update #1: Commission weighs joint borrowing for Ukraine -- Politico  

Update #2: EU Weighs Joint Debt to Fund Ukraine Reconstruction After Russia's War -- Bloomberg  

WNU Editor: Ukraine can never pay off these debts. And what is worse is that with the collapse of Ukraine economy and no revenues coming in for the government, Kyiv will be needing billions more each month to pay the bills, salaries, pensions, and to fund the war. 

My guess is that the reason why the EU and the US are willing to commit tens of billions of dollars to Ukraine is that in the event that Ukraine cannot pay-off its bills and debts (which I know they cannot), both the US and the EU will then just transfer the $600 billion of seized Russian assets into their treasuries and justify it by saying that it is Russia's fault.