EU leaders have reached an agreement during overnight summit talks in Brussels to provide Ukraine a €90 billion ($105 billion) loan package to help cover Ukraine’s looming budget shortfalls.
The leaders opted on Friday for a two-year loan backed by the bloc’s common budget instead of using frozen Russian assets to come up with the funds.
The decision delivers a critical financial lifeline as US President Donald Trump presses for a rapid diplomatic settlement to the nearly four-year war.
European Council President Antonio Costa said the package would give Kiev “the necessary means to defend itself and to support the Ukrainian people.”
Ukrainian President Volodymyr Zelenskyy on Friday welcomed the decision, calling the deal a major reinforcement of Ukraine’s ability to withstand Russia’s ongoing invasion.
“This is significant support that truly strengthens our resilience,” Zelenskyy said on X, adding that it was crucial Russian assets remain frozen while Ukraine secures long-term financial guarantees.
Plans on frozen Russian assets sink
The deal came after EU governments failed to reach a consensus on using roughly €200 billion ($235 billion) in frozen Russian central bank assets held largely in Belgium. Concerns over legal liability and risk-sharing ultimately sank the proposal, despite strong backing from Germany and Ukraine.
Belgian Prime Minister Bart De Wever said the abandoned plan was “so risky, so dangerous” that abandoning it brought relief among leaders. Still, German Chancellor Friedrich Merz said the loan agreement sent a “clear signal” to Russian President Vladimir Putin.
European Commission President Ursula von der Leyen said Ukraine would only begin repaying the loan once Russia compensates for the damage caused by its invasion.
The EU estimates Ukraine needs an additional €135 billion ($159 billion) over the next two years to keep its economy afloat, with financial pressure expected to intensify as early as April.
While Kiev had urged leaders to seize Russian assets outright, securing funding by other means will ease immediate concerns.
“Move quickly”
The summit also unfolded against the backdrop of renewed US-led efforts to broker an end to the war.
Zelenskyy confirmed Ukrainian and American delegations would hold talks in the United States over the weekend, focusing on security guarantees to prevent future Russian aggression.
Trump, however, reiterated his call for speed, again urging Kiev to “move quickly” toward a deal.
