BRUSSELS — The EU and U.S. are close to an agreement to divide equally between them contributions toward a $50 billion loan to Ukraine, two officials with knowledge of proceedings told POLITICO.

Brussels and Washington would each provide $20 billion to the country that's been fighting Russia since Vladimir Putin's invasion in Feb. 2022, according to an outline agreement that will be discussed at a meeting of G7 finance ministers in Rio de Janeiro, Brazil on Wednesday. The U.K., Japan and Canada would make up the rest of the loan.

Reaching a deal would pave the way for the Western alliance to give the loan to Ukraine before a self-imposed end-of-year deadline. Governments have previously said that the loan could be used for several purposes including defense or humanitarian needs.

G7 leaders in June agreed to provide the $50 billion loan that will be repaid using the proceeds generated by investing over €250 billion Russian assets immobilized in the West. The bulk of the assets are held by the Brussels-based securities depository Euroclear.

But disagreements between allies on how to carve up the loan have stalled progress.  

The thorniest issue is that the U.S. is expected to involve Congress if the loan is seen as putting U.S. taxpayers’ money at risk, raising fears that the process will drag on beyond the deadline, said officials with knowledge of the talks.

To avoid this risk, Washington is seeking reassurances from the EU that the Russian assets will remain frozen until the entire loan is paid back.

The bloc has suggested writing into law that the assets will be immobilized until Russia pays back future postwar compensations to Ukraine, two EU diplomats told POLITICO.

The European Commission held off from proposing its own text to translate the G7 deal into EU law due to continued uncertainty over its exact contribution to the loan. But there is growing optimism in Brussels that this might happen as early as Wednesday.  

Frozen assets are listed as a possible agenda item in a weekly meeting of EU ambassadors on Wednesday, according to a draft agenda seen by POLITICO.