European Union leaders have reached a significant agreement to provide Ukraine with a loan of €90 billion to bolster its military and economic needs. This decision came after extensive negotiations at a summit in Brussels, where leaders were unable to find consensus on a proposal to use frozen Russian assets for funding.
The agreement, announced by European Council President Antonio Costa via social media, is set to be financed through the EU’s common budget. Costa emphasized the bloc’s commitment, stating that it had “committed” and “delivered” support for Ukraine.
Ukrainian President Volodymyr Zelensky had earlier urged EU leaders to consider tapping into approximately €200 billion in frozen Russian assets. However, Belgium, which holds a significant portion of these funds, insisted on liability-sharing guarantees that were not accepted by other member states. Zelensky welcomed the loan, describing it as “significant support that truly strengthens our resilience,” while reiterating the necessity of keeping Russian assets immobilised.
The decision to proceed with a loan rather than seizing Russian assets was praised by Belgian Prime Minister Bart De Wever. He stated that this approach helped the EU avoid “chaos and division,” thereby preserving unity among member states.
As Ukraine faces a looming cash shortage, Zelensky warned that without new funding by spring, Kyiv might need to cut back on drone production. The EU anticipates that Ukraine will require an additional €135 billion over the next two years, particularly as financial pressures are expected to intensify from April 2024.
German Chancellor Friedrich Merz commented that the agreement sends a “clear signal” to Russian President Vladimir Putin. Meanwhile, Polish Prime Minister Donald Tusk called on leaders to “rise to this occasion,” despite warnings from Moscow against the usage of its assets.
This loan serves as a critical lifeline for Ukraine as diplomatic efforts continue, including renewed talks led by the United States aimed at resolving the ongoing conflict with Russia. Further discussions between Ukrainian and American officials are anticipated in the coming days, reflecting the urgent need for comprehensive international support.
