European Union leaders have agreed on a €90 billion roughly $105 billion interest free loan to Ukraine that will help keep the country’s government and defense funded through 2026 and 2027 amid its ongoing war with Russia.
The package was finalized at a summit in Brussels after intense negotiations among EU heads of government with the loan to be backed by the EU’s common budget and borrowing on capital markets rather than tapping frozen Russian assets.
Earlier plans to fund this support using €210 billion in frozen Russian central bank assets held mainly in Belgium fell apart due to legal and financial concerns particularly Belgium’s objections over potential retaliation and liability risks.
Under the final deal Ukraine will only be required to repay this loan if Russia ultimately pays war reparations relieving Kyiv of immediate repayment pressures. EU leaders also reserved the right to eventually use frozen Russian assets to help cover the loan if necessary.
The agreement faced political hurdles with countries like Hungary Slovakia and the Czech Republic securing exemptions from financial obligations even as unanimity on Ukraine support proved difficult.
German Chancellor Friedrich Merz described the move as a strong political message to Moscow reinforcing that European support for Ukraine remains firm despite diplomatic divisions.
Ukrainian President Volodymyr Zelenskyy welcomed the decision calling the financial lifeline critical for Ukraine’s resilience and continued defense against Russian aggression.
This €90 billion deal now sets the stage for Ukraine’s economic and military planning over the next two years even as broader discussions continue in Europe about the long‑term use of frozen Russian assets and compensation for war damages.
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