European Union leaders approved a €90 billion interest-free loan for Ukraine. They reached this deal during summit talks in Brussels. The funds cover two years from 2026 to 2027.
This amount meets about two-thirds of Ukraine’s estimated €137 billion needs. Leaders raised the money on capital markets. They backed it with the EU’s common budget.
Negotiations Bypass Frozen Russian Assets
The summit failed to agree on using frozen Russian assets. These assets total €210 billion and sit mostly in Belgium. Leaders immobilized them after Russia’s 2022 invasion.
Belgium demanded strong guarantees against Russian retaliation. Prime Minister Bart De Wever warned of potential chaos from Moscow. As a result, the group avoided this option entirely. Furthermore they exempted Hungary, Slovakia, and the Czech Republic from liability. This left 24 member states to share the burden.
Zelenskyy Welcomes Support with Reservations
Ukrainian President Volodymyr Zelenskyy praised the agreement. He said it truly strengthens Ukraine’s resilience. However he urged leaders to use Russian assets for a reparation loan.
Zelenskyy stressed the need for long-term predictability. He noted that Russian assets should remain immobilized. In addition, Ukrainian officials called the deal great news and a morale boost.
Positive Reactions from EU Officials
EU chief Antonio Costa hailed the solution. He said it gives Ukraine means to defend itself. Similarly Commission President Ursula von der Leyen noted ongoing talks for future financing.
French President Emmanuel Macron called it a real break from the past. German Chancellor Friedrich Merz described it as a great success. Polish Prime Minister Donald Tusk said leaders rose to the occasion.
Russia’s View and Broader Implications
Russian officials claimed victory over the failed asset plan. Envoy Kirill Dmitriev said law and sanity win for now. Yet the assets stay frozen for possible reparations.
This loan helps Ukraine avoid bankruptcy and cash shortages. It supports defense efforts like drone production. However it exposes EU divisions and serves as a compromise.
As a result, the deal signals strong EU unity against aggression. It aids ongoing peace talks. In conclusion, this support bolsters Ukraine’s fight while highlighting complex geopolitical challenges.
