US EditionEU leaders agree on 90 billion euro loan to Ukraine after a plan to use Russian assets unravels
- 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.
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266 Articles
The opposition sharply criticizes Prime Minister and ANO leader Andrej Babiš for refusing to guarantee a loan to Ukraine at the European Union summit, thus siding with Hungary and Slovakia. According to Jurečka from KDU-ČSL, this is treason. According to Kupka from ODS, it is swindling.
Hungary, the Czech Republic and Slovakia do not want to participate in the loan.
The leaders of the 27 had been meeting since Thursday 18 December in the morning to find a financing solution for Ukraine.
Following the summit, the EU countries agreed to provide Ukraine with a loan of 90 billion euros, secured by the bloc's own budget, without using Russian frozen assets, said Antonio Costa, President of the European Council.
EU Approves €90 Billion Loan for Ukraine Amid Asset Controversy
EU Approves €90 Billion Loan for Ukraine Amid Asset Controversy European Union leaders have secured a €90 billion loan for Ukraine to bolster its financial stability for the next two years in light of Russia's invasion. The loan will be drawn from EU funds rather than utilizing frozen Russian assets.The straightforward agreement faced pushback, especially from Belgium, due to complexity and legal hurdles. Meanwhile, Hungarian Prime Minister Vikt…
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