European Union leaders have agreed to provide Ukraine with a substantial €90 billion loan to support the country's
military and economic needs over the next two years. This decision comes after disagreements arose regarding a proposal
to use frozen Russian assets to finance the loan.
Ukraine's financial needs are pressing. The International Monetary Fund estimates that the nation will require €137
billion in 2026 and 2027. The Ukrainian government is facing potential bankruptcy and urgently requires funds by the
The initial plan involved using a portion of the €210 billion in Russian assets frozen in Europe, a significant portion
of which is held in Belgium. However, EU leaders struggled to reassure Belgium regarding potential Russian retaliation
if the plan moved forward. Ultimately, the leaders chose to borrow the funds on capital markets.
EU Council President António Costa announced the agreement on social media, stating, "We have a deal. Decision to
provide 90 billion euros of support to Ukraine for 2026-27 approved. We committed, we delivered."
While most countries supported the loan package, Hungary, Slovakia, and the Czech Republic voiced opposition. However,
an agreement was reached where they would not block the package, with assurances of protection from any financial
Hungarian Prime Minister Viktor Orbán, a close ally of Russian President Vladimir Putin, expressed his concerns,
stating, "I would not like a European Union in war," and described the rejected plan to use frozen Russian assets as a
French President Emmanuel Macron hailed the agreement as a significant step forward, stating that borrowing on capital
markets was the most practical approach to funding Ukraine. German Chancellor Friedrich Merz echoed this sentiment,
noting that the loan would be interest-free and sufficient to cover Ukraine's military and budgetary needs for the next
two years. Merz also stated that the frozen assets would remain blocked until Russia pays war reparations to Ukraine,
which Ukrainian President Volodymyr Zelenskyy estimates to be over €600 billion.
Zelenskyy had traveled to Brussels to advocate for a swift decision. Polish Prime Minister Donald Tusk emphasized the
urgency of the situation, warning of dire consequences if aid was not provided promptly.
The plan to utilize frozen Russian assets faced obstacles due to concerns raised by Belgian Prime Minister Bart De
Wever, who cited legal risks and potential harm to Euroclear, the Brussels-based financial clearing house holding €193
billion in frozen assets. De Wever stated that the reparations loan was not a sound idea, pointing to numerous
unresolved issues and the risk of undermining legal certainty worldwide. He emphasized the importance of upholding the
rule of law, even under pressure, and affirmed Europe's support for Ukraine.
Despite the decision to borrow on capital markets, Costa indicated that the EU reserves the right to use the immobilized
assets to repay the loan.