European Union leaders have agreed to grant Ukraine a €90bn (£79bn; $105bn) loan, aiming to support the country’s military and economic needs over the next two years. This agreement comes after more than a day of talks at a summit in Brussels. Unfortunately, they were unable to reach a consensus on using frozen Russian assets.
EU chief Antonio Costa announced the deal, emphasizing, “We committed, we delivered.” He explained that the loan would be backed by the EU’s common budget, ensuring continued support for Ukraine.
Ukrainian President Volodymyr Zelensky had initially pushed for the use of €200 billion from frozen Russian assets. However, Belgium, where most of these assets are held, demanded guarantees on sharing liabilities. This request created difficulties, ultimately leading the EU to opt for a loan instead of using the frozen funds.
In a separate development, French President Emmanuel Macron stated that Europe should re-engage with Russian President Vladimir Putin. He noted, “I believe that it’s in our interest as Europeans and Ukrainians to find the right framework to re-engage this discussion.” Macron hopes that Europe can begin talks in the coming weeks.
Belgian Prime Minister Bart De Wever praised the EU leaders’ decision, saying it helped avoid “chaos and division.” He added, “We remained united,” underscoring the importance of cohesion during the negotiations.
Ukraine is facing a severe financial crunch. Zelensky warned that without an influx of funds by spring, Ukraine would need to cut back on drone production. The EU estimates that Ukraine requires an additional €135 billion to continue functioning over the next two years, with the cash shortage expected to hit by April.
Furthermore, German Chancellor Friedrich Merz had supported the use of frozen Russian assets. He said that the loan decision sends a clear signal to Russian President Putin. Although Russia opposed using its frozen funds, Polish Prime Minister Donald Tusk argued that the EU had to “rise to this occasion” and support Ukraine in its time of need.
The loan agreement provides Ukraine with a critical lifeline. At the same time, it comes amid a flurry of diplomacy. US President Donald Trump is pushing for a quick resolution to the ongoing conflict with Russia. US and Russian officials will meet in Miami this weekend to discuss a potential peace plan. Kremlin envoy Kirill Dmitriev will meet with Trump envoys Steve Witkoff and Jared Kushner to continue the discussions.
Meanwhile, Zelensky announced that Ukrainian and US delegations would hold talks in the United States on Friday and Saturday. Zelensky emphasized that he wants the US to provide clearer guarantees to protect Ukraine from future invasions.
