European Union leaders have reached a pivotal agreement to provide Ukraine with a €90 billion interest-free loan to support its defense and economic resilience over the next two years (2026-2027). This decision, finalized during summit talks in Brussels, addresses approximately two-thirds of Ukraine's estimated €137 billion financial needs without utilizing frozen Russian assets.
The loan will be raised on capital markets and backed by the EU's common budget, marking a significant step to ensure Ukraine's stability amid Russia's ongoing invasion.
Discussions on leveraging €210 billion in immobilized Russian assets primarily held in Belgium, did not yield consensus due to concerns over potential legal and retaliatory risks from Moscow. As a result, Hungary, Slovakia, and the Czech Republic are exempted from liability, with the remaining 24 member states sharing the financial responsibility.
Ukrainian President Volodymyr Zelenskyy welcomed the agreement, stating, "This truly strengthens our resilience and our ability to protect our people." However, he emphasized the need for future use of Russian assets, adding, "Russian assets must remain immobilized and be used to pay for reparations."
EU Council President Antonio Costa hailed the deal as a demonstration of solidarity: "This solution gives Ukraine the means to defend itself and rebuild." European Commission President Ursula von der Leyen noted, "We will continue discussions on sustainable financing options."
French President Emmanuel Macron described it as "a real break from the past," while German Chancellor Friedrich Merz called it "a great success." Polish Prime Minister Donald Tusk added, "EU leaders rose to the occasion.”
This loan underscores the EU's commitment to Ukraine's sovereignty and aims to prevent budgetary shortfalls that could hinder defense efforts, such as drone production. While Russian officials claimed the outcome as a "victory" for avoiding asset seizure, the EU maintains that these funds remain frozen for potential future reparations.