US EditionEU Agrees on €90B Loan to Ukraine, Fails to Use Russian Assets
EU leaders approved a €90 billion loan to support Ukraine’s military and budget needs over two years, while rejecting the use of €200 billion frozen Russian assets as loan collateral.
- After marathon talks in Brussels, EU leaders agreed on Friday to provide a 90 billion euro loan to Ukraine for 2026-27, following urgent discussions about Kyiv's cash needs.
- The EU estimates Ukraine needs an extra 135 billion euros to stay afloat and faces a cash crunch starting in April, while the IMF projects 137 billion euros for 2026-27, prompting President Volodymyr Zelenskyy to demand a year-end decision.
- The number one option had been to tap about 200 billion euros of frozen Russian assets, but Belgian Prime Minister Bart De Wever demanded liability guarantees and Russia's Central Bank sued Euroclear.
- Agreeing a compromise, leaders chose joint EU borrowing backed by the EU budget and headroom, granting Ukraine a zero-interest loan repayable only after reparations; Hungary, Slovakia and the Czech Republic secured exemptions.
- EU leaders noted they reserve the right to use immobilised Russian assets to repay the loan, while avoiding a legal precedent, as `This sends a clear signal from Europe to Putin: This war will not be worth it,` Merz said.
387 Articles
387 Articles
There was a time during the evening-night of yesterday when the possibility of approving the use of Russian assets seemed real in Brussels. The European Commission and Belgium...
The EU countries have agreed on a compromise on the financing of Ukraine for the next two years. Russian assets are not directly included - unlike the German Chancellor Merz wanted - but instead there is an interest-free loan. We explain what is so far known about the agreement.
EU Agrees to New Ukraine Loan, But Russian Asset Plan Fails
EU leaders agreed Friday to provide Ukraine with a loan of 90 billion euros ($105 billion) to stabilize the war-torn country’s finances, but failed to reach consensus on a more ambitious plan to use frozen Russian assets to fund additional aid.
European leaders agree to $105 billion loan to fund Ukraine
Europe will lend $105 billion in additional aid to Ukraine to fund its money-starved budget for two years. European leaders will obtain the money with a loan backed by the European Union’s budget. The plan approved Friday is some leaders’ second choice, after a push to use Russia’s frozen assets to fund the Ukrainian budget. Belgium, where most of the frozen assets are located, did not consent to the first-choice plan. The country rejected the p…
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