Leaders of the European Union have agreed to provide a €90 billion loan to Ukraine to support the country during 2026–2027, following intense negotiations and disagreements over the use of frozen Russian assets.
The decision was reached during a high-level summit in Brussels, where EU member states debated how best to secure long-term financial assistance for Kyiv as the war with Russia continues to strain Ukraine’s economy, infrastructure, and defense capabilities.
Disagreement Over Russian Assets
A major point of contention among EU leaders was whether to directly use frozen Russian state assets—held mainly in European financial institutions—to finance Ukraine’s needs. While some countries argued that using the assets would send a strong political message to Moscow and ease the burden on European taxpayers, others raised serious legal and financial concerns.
Several member states warned that seizing or reallocating the assets could violate international law, expose the EU to legal challenges, and undermine confidence in the eurozone’s financial system. As a compromise, leaders opted for a loan mechanism rather than direct asset confiscation.
Structure of the Loan
Under the agreed framework, the €90 billion package will be distributed over two years and is expected to:
- Support Ukraine’s defense and security needs
- Help stabilize public finances
- Fund reconstruction and essential services, including energy and infrastructure
Although frozen Russian assets will not be directly transferred to Ukraine, interest generated from those assets may still be used indirectly to help service the loan or reduce its long-term cost.
Political and Strategic Message
EU officials stressed that the agreement demonstrates the bloc’s continued political and financial commitment to Ukraine, even amid internal disagreements and growing economic pressures within Europe.
“The European Union remains united in supporting Ukraine for as long as it takes,” one senior EU official said, adding that the loan ensures predictability and stability for Kyiv at a critical stage of the conflict.
Looking Ahead
The loan agreement is expected to be formally approved by national governments and EU institutions in the coming months. Meanwhile, discussions over the future use of frozen Russian assets are likely to continue, with some leaders calling for clearer international legal frameworks that could allow their use without setting risky precedents.
For Ukraine, the €90 billion package provides a vital financial lifeline, reinforcing European backing as the war enters another decisive phase.
