EU leaders approve a €90 billion loan to support Ukraine’s budget but fail to agree on using frozen Russian assets to fund the assistance
BRUSSELS: EU leaders have agreed to provide Ukraine with a loan of €90 billion to address its looming budget shortfalls.
The deal, struck during summit talks in Brussels, offers Kyiv vital financial support as US President Donald Trump pushes for a swift end to Russia’s war.
European Council head Antonio Costa, who chaired the summit, said the decision provides Ukraine with the necessary means to defend itself and support its people.
Ukrainian President Volodymyr Zelensky welcomed the significant support on social media platform X.
“It is important that Russian assets remain immobilised and that Ukraine has received a financial security guarantee for the coming years,” he wrote.
Kremlin economic negotiator Kirill Dmitriev welcomed the failure to use Russian assets, stating “for the time being, the law and common sense have won a victory.”
Leaders settled on a two-year loan backed by the EU’s common budget after failing to agree on tapping frozen Russian central bank assets.
Belgium, where most of the €200 billion in frozen assets are held, demanded liability-sharing guarantees that other countries rejected.
Belgian Prime Minister Bart De Wever said rationality had prevailed over a risky and dangerous proposal.
German Chancellor Friedrich Merz, who had pushed for the asset plan, said the loan still sends a clear signal to Russian President Vladimir Putin.
European Commission President Ursula von der Leyen stated Ukraine would only repay the loan once Moscow pays for war damages.
Sceptical member states Hungary, Slovakia and the Czech Republic were granted an exemption from the joint debt commitment.
The EU estimates Ukraine needs an extra €135 billion to stay afloat over the next two years, with a cash crunch expected from April.
Zelensky had earlier told EU leaders that using Russian assets was the moral, fair and legal way to fund Ukraine’s defence.
Alongside EU discussions, Washington is pushing its own effort to forge an end to the nearly four-year war.
French President Emmanuel Macron said it was time for Europe to start talking to Moscow directly in the coming weeks.
Zelensky announced new Ukrainian and US delegation talks would be held in the United States on Friday and Saturday.
He sought more details from Washington on security guarantees to protect Ukraine from future Russian aggression.
President Trump reiterated his hope that Ukraine moves quickly to agree a deal to end the conflict. – AFP
