European Union leaders have reached an agreement to provide a €90 billion loan to Ukraine aimed at sustaining the country’s economy and military capabilities over the next two years, following intense negotiations at a high-level summit in Brussels.
The decision comes after EU members failed to secure consensus on using frozen Russian sovereign assets as collateral for financing Ukraine. While several countries pushed for the move as a way to make Moscow bear the financial cost of the war, others raised serious legal and financial concerns, warning that such a step could set a risky precedent and expose the EU to future litigation and retaliation.
As a result, leaders opted for a loan-based mechanism that ensures continued support for Kyiv without immediately tapping into Russian assets. EU officials said the funds will help Ukraine cover critical budgetary needs, maintain public services, support reconstruction efforts, and strengthen its defense capacity amid ongoing hostilities.
European Commission President Ursula von der Leyen stressed that supporting Ukraine remains a strategic priority for Europe, describing the loan as both an act of solidarity and an investment in European security. “Ukraine’s stability is directly linked to Europe’s stability,” she noted.
Despite the agreement, divisions within the bloc remain evident. Countries such as Belgium and others hosting large volumes of frozen Russian assets continue to express caution, citing potential risks to the eurozone’s financial credibility and the international legal order.
EU diplomats indicated that discussions on the possible future use of Russian assets are not closed and may resume as legal frameworks evolve. For now, the €90 billion loan represents the largest unified financial commitment by the EU to Ukraine, reinforcing Europe’s role as a central backer of Kyiv as the war enters another critical phase.
