European Union leaders have reached an agreement to provide Ukraine with a €90 billion (£79bn; $105bn) loan, though the plan does not involve using frozen Russian assets.
The deal, announced after over a day of discussions at a summit in Brussels, is expected to support Ukraine’s military and economic needs over the next two years. EU chief Antonio Costa confirmed the arrangement on X, noting the loan is backed by the bloc’s common budget.
Ukrainian President Volodymyr Zelensky had previously urged the EU to tap into €200 billion of frozen Russian assets, but Belgium, which holds the majority of the funds, demanded guarantees on liability sharing, which other countries could not accept. Zelensky expressed gratitude for the EU’s support, calling it “significant” and emphasizing the importance of keeping Russian assets immobilized.
French President Emmanuel Macron suggested that Europe should consider re-engaging with Russian President Vladimir Putin, saying a framework for dialogue should be explored in the coming weeks.
Belgian Prime Minister Bart De Wever said the EU avoided division by choosing to provide the loan through borrowing rather than using frozen Russian funds, ensuring unity among member states.
Ukraine is facing an urgent cash shortage, with Zelensky warning that without additional funding by spring, the country may have to cut drone production. The EU estimates Ukraine requires an extra €135 billion over the next two years, with the shortfall beginning in April.
German Chancellor Friedrich Merz, who supported using Russian assets, said the loan decision sends a clear signal to Putin. Meanwhile, Polish Prime Minister Donald Tusk stressed the necessity of acting decisively.
The agreement comes as US and Russian officials plan meetings in Miami to discuss a peace plan, while Zelensky confirmed new talks with US delegations on safeguards against future invasions.
