On Friday, leaders of the European Union reached an agreement to extend a loan of 90 billion euros (approximately $105 billion) to Ukraine, aimed at stabilizing the finances of the war-affected nation. However, they did not come to a consensus on a more ambitious initiative to utilize frozen Russian assets for additional assistance.
The agreement was finalized after lengthy discussions during a summit in Brussels, providing Kyiv with essential financial support as U.S. President Trump calls for a swift conclusion to Russia’s ongoing conflict with Ukraine, which has lasted nearly four years.
European Council President Antonio Costa remarked, “The decision made today will equip Ukraine with the necessary resources to defend itself and support its people.”
Ukrainian President Volodymyr Zelensky expressed on X that the agreement constitutes significant backing that genuinely enhances Ukraine’s resilience. He further stressed the importance of keeping Russian assets immobilized and securing a financial guarantee for Ukraine in the coming years.
In Moscow, officials responded positively to the development. Kirill Dmitriev, the Kremlin’s lead economic negotiator, posted on Telegram that the EU had not “illegitimately used Russian assets to finance Ukraine,” noting that “for now, the law and common sense have triumphed.”
The loan, which is backed by the EU’s collective budget and intended for the next two years, falls short of earlier proposals to access approximately 200 billion euros of Russian Central Bank assets that are frozen in the EU.
This approach was halted after Belgium, where most of these assets are located, sought assurances regarding how any potential legal and financial responsibilities would be divided, a condition that other member states were reluctant to agree to.
Belgian Prime Minister Bart De Wever, addressing the media after the summit concluded, stated, “I believe rationality has prevailed. This entire situation was fraught with risk, posed numerous questions, and felt akin to a sinking ship, like the Titanic. Now that decisions have been made, there is a sense of relief.”
German Chancellor Friedrich Merz, who had been a strong advocate for the asset seizure proposal, affirmed that the final resolution reached early Friday still sends a strong message to Russian President Vladimir Putin.
European officials noted that Ukraine will not be obligated to repay the loan until Russia provides compensation for war-related damages. Skeptics within the EU, including Hungary, Slovakia, and the Czech Republic, were granted exceptions to facilitate unanimous approval.
The EU projects that Ukraine will require an additional 135 billion euros (around $159 billion) over the next two years, with funding challenges anticipated to escalate by spring.
