European Union leaders have agreed to provide Ukraine with a €90bn loan to support its military and economic needs, after failing to reach consensus on using frozen Russian assets.
The deal was struck after more than a day of talks at a summit in Brussels, with the loan to be backed by the EU’s common budget. European Council President Antonio Costa announced the agreement on social media, saying the bloc had “committed” and “delivered.”
Ukrainian President Volodymyr Zelensky had urged EU leaders to tap roughly €200bn in frozen Russian assets, but Belgium, where most of the funds are held, demanded liability-sharing guarantees that other member states were unwilling to accept.
Zelensky welcomed the loan, describing it as “significant support that truly strengthens our resilience,” while stressing that Russian assets should remain immobilised.
Belgian Prime Minister Bart De Wever said the decision to borrow funds rather than seize Russian assets helped the EU avoid “chaos and division,” adding that unity had been preserved.
Ukraine is facing a looming cash shortage, with Zelensky warning that without new funding by spring, Kyiv would be forced to cut drone production. The EU estimates Ukraine will need an additional €135bn over the next two years, with financial pressure intensifying from April.
German Chancellor Friedrich Merz said the agreement sent a “clear signal” to Russian President Vladimir Putin, while Polish Prime Minister Donald Tusk urged leaders to “rise to this occasion” despite Moscow’s warnings against using its assets.
The loan provides Ukraine with a critical lifeline as diplomatic efforts intensify, including renewed US-led talks aimed at ending Russia’s war, with further discussions expected between Ukrainian and American officials in the coming days.
Erizia Rubyjeana
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