It is noted that the U.S. proposal is outlined in an EU document seen by the publication. It is likely to be discussed on Wednesday, June 5, at a meeting of EU finance ministers.

Washington is pushing for a deal ahead of a summit of G7 leaders in Italy next week, where a financing mechanism backed by proceeds from frozen assets is expected to be central to support for Ukraine.

According to the FT, the main option being considered is a US plan to lend to Ukraine, possibly together with other G7 states, which roughly corresponds to estimated "windfall revenues" of hundreds of millions of dollars. Diplomats say they are talking about $50 billion.

The details of the loan, such as the interest rate, payment terms and disbursement mechanism, have yet to be determined.

However, according to the newspaper, Washington views any such loan as "conditional on the EU dedicating asset profits to the repayment and guaranteeing that the Russian central bank's assets held in the EU will remain blocked until Russia agrees to pay for the damage done to Ukraine".

• Recently, Ukrainian President Volodymyr Zelenskyy said that on the eve of Russia's full-scale invasion, he had urged allies, particularly the United States and the European Union, to impose sanctions against Russia, but this had not been done.