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.
379 Articles
379 Articles
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…
Hungary, Slovakia and the Czech Republic do not participate in this.
EU Ambassador to Ukraine Katarina Maternova believes that the decision to provide Ukraine with a loan of 90 billion euros, adopted during the EU summit in Brussels, will preserve the financial stability of the state over the next two years.
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