EU Leaders Approve €90 Billion Ukraine Loan, Drop Plan to Use Frozen Russian Assets
The Chronify
European Union leaders agreed to provide Kyiv with €90 billion in financial support for 2026-27. They set aside plans to tap €210 billion in frozen Russian assets after legal and political resistance.
European Union leaders have reached a major agreement to provide €90 billion ($106 billion) in financing to Ukraine over the next two years, following intense discussions at a summit in Brussels. The decision comes amid urgent concerns that Ukraine could run out of funds by spring without significant external support as its war with Russia continues.
The approved package will be delivered as a zero-interest loan backed by the EU budget and raised on capital markets, rather than by seizing any of the roughly €210 billion in Russian sovereign assets currently frozen in the EU. That frozen assets-based plan, initially proposed as a way to directly fund Kyiv, was abandoned due to strong resistance, particularly from Belgium, where most of the assets are held, along with concerns about legal, financial, and political risks.
German Chancellor Friedrich Merz hailed the loan deal as a clear message of support for Ukrainian defense and unity among EU members, while Ukrainian President Volodymyr Zelenskyy had previously urged leaders to use frozen assets as a morally justified source of funding. Although the EU’s frozen Russian assets remain untouched for now, leaders have stated they could still serve as security for future repayment if Russia ever pays war reparations.
The agreement was reached despite opposition from Hungary, Slovakia, and the Czech Republic, which are not participating financially but agreed not to block the package, preserving overall European support for Ukraine. Analysts say the deal helps sustain Kyiv’s defense spending and economic stability through 2026 and 2027.
The approved package will be delivered as a zero-interest loan backed by the EU budget and raised on capital markets, rather than by seizing any of the roughly €210 billion in Russian sovereign assets currently frozen in the EU. That frozen assets-based plan, initially proposed as a way to directly fund Kyiv, was abandoned due to strong resistance, particularly from Belgium, where most of the assets are held, along with concerns about legal, financial, and political risks.
German Chancellor Friedrich Merz hailed the loan deal as a clear message of support for Ukrainian defense and unity among EU members, while Ukrainian President Volodymyr Zelenskyy had previously urged leaders to use frozen assets as a morally justified source of funding. Although the EU’s frozen Russian assets remain untouched for now, leaders have stated they could still serve as security for future repayment if Russia ever pays war reparations.
The agreement was reached despite opposition from Hungary, Slovakia, and the Czech Republic, which are not participating financially but agreed not to block the package, preserving overall European support for Ukraine. Analysts say the deal helps sustain Kyiv’s defense spending and economic stability through 2026 and 2027.
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