EU leaders agree on 90 billion euro loan to Ukraine after plan to use Russian assets unravels

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European Union leaders agreed on Friday to supply a large interest-free mortgage to Ukraine to satisfy its navy and financial wants for the following two years, however they didn't bridge variations with Belgium that will have allowed them to use frozen Russian belongings to lift the funds.

After virtually 4 years of conflict, the Worldwide Financial Fund estimates that Ukraine will want 137 billion euros ($161 billion) in 2026 and 2027. The federal government in Kyiv is on the verge of chapter, and desperately wants the cash by spring.

The plan had been to make use of a few of the 210 billion euros ($246 billion) value of Russian belongings which might be frozen in Europe, largely in Belgium.

Ukraine’s President Volodymyr Zelensky speaks throughout a media convention on the EU Summit in Brussels, on Dec. 18, 2025. AP

The leaders labored deep into Thursday evening to reassure Belgium that they might shield it from any Russian retaliation if it backed the “reparations mortgage” plan, however because the talks slowed down the leaders finally opted to borrow the cash on capital markets.

“Now we have a deal. Determination to supply 90 billion euros ($106 billion) of assist to Ukraine for 2026-27 accredited. We dedicated, we delivered,” EU Council President António Costa mentioned in a put up on social media.

Not all nations agreed to the mortgage package deal. Hungary, Slovakia and the Czech Republic refuse to assist Ukraine and opposed it, however a deal was reached by which they didn't block the package deal and have been promised safety from any monetary fallout.

Hungarian Prime Minister Viktor Orbán, who's Russian President Vladimir Putin’s closest ally in Europe and describes himself as a peacemaker, mentioned “I'd not like a European Union in conflict.”

“To provide cash means conflict,” mentioned Orbán. He additionally described the rejected plan to make use of the frozen Russian belongings as a “useless finish.”

The plan had been to make use of a few of the 210 billion euros ($246 billion) value of Russian belongings which might be frozen in Europe, largely in Belgium. ZUMAPRESS.com

French President Emmanuel Macron mentioned the deal was a serious advance, saying that borrowing on capital markets “was probably the most practical and sensible manner” to fund Ukraine and its conflict efforts.

German Chancellor Friedrich Merz additionally hailed the choice.

“The monetary package deal for Ukraine has been finalized,” Merz mentioned in an announcement, noting that “Ukraine is granted a zero-interest mortgage.”

“These funds are enough to cowl the navy and budgetary wants of Ukraine for the 2 years to return,” Merz added. He mentioned the frozen belongings will stay blocked till Russia has paid conflict reparations to Ukraine. Ukrainian President Volodymyr Zelenskyy has mentioned that will price over 600 billion euros ($700 billion).

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“If Russia doesn't pay reparations we are going to — in full accordance with worldwide legislation — make use of Russian immobilized belongings for paying again the mortgage,” Merz mentioned.

Zelenskyy, who traveled to Brussels for a summit that befell throughout fiery protests by farmers offended a couple of proposed commerce cope with 5 South American nations, had appealed for a fast choice to maintain Ukraine afloat within the new yr.

Polish Prime Minister Donald Tusk warned early on Thursday that it will be a case of sending “both cash right now or blood tomorrow” to assist Ukraine.

Russia’s President Vladimir Putin meets with recipients of Gold Star medal of Hero of Russia after an expanded assembly of the Russian Protection Ministry Board on the Nationwide Protection Management Centre in Moscow on Dec. 17, 2025. POOL/AFP by way of Getty Pictures

The plan to make use of frozen Russian belongings obtained slowed down as Belgian Prime Minister Bart De Wever rejected the scheme as legally dangerous, and warned that it may hurt the enterprise of Euroclear, the Brussels-based monetary clearing home the place 193 billion euros ($226 billion) in frozen belongings are held.

Belgium was rattled final Friday when Russia’s Central Financial institution launched a lawsuit towards Euroclear to forestall any mortgage being offered to Ukraine utilizing its cash, which is frozen below EU sanctions slapped on Moscow after its launched its full-scale conflict in 2022.

“For me, the reparations mortgage was not a good suggestion,” De Wever advised reporters after the assembly. “After we defined the textual content once more, there have been so many questions that I mentioned, I advised you so, I advised you so. There are a number of unfastened ends. And when you begin pulling on the unfastened ends within the strings, the factor collapses.”

“We averted stepping right into a precedent that dangers undermining authorized certainty worldwide. We safeguarded the precept that Europe respects legislation, even when it's laborious, even after we are below strain,” he mentioned, including that the EU “delivered a robust political sign. Europe stands behind Ukraine.”