Without using frozen Russian assets… The EU approves €90 billion loan for Ukraine
The European Union leaders have reached an agreement to give Ukraine a 90 billion Euro ($105 billion) loan after failing to agree on the use of frozen Russian assets.
The deal, which the leaders said would meet Ukraine’s military and economic needs for the next two years, came after more than a day of talks at a summit in Brussels.
Announcing the deal to provide a loan backed by the bloc’s common budget, European Council President António Costa wrote on X: “We’ve committed, and we have fulfilled it”.
Russia accused EU leaders of making illegal moves against Russian reserves after the deal was announced, as Kremlin envoy Kirill Dmitriev said in a post on X: “The whole world has watched you fail to force others to break the law,” referring in particular to British Prime Minister Keir Starmer, European Commission President Ursula von der Leyen, and German Chancellor Friedrich Merz.
Dmitriev called the deal a major blow to the EU’s warmongers, adding that “law and reason win for now”.
From his part, Ukrainian President Volodymyr Zelensky praised the deal and said the support really strengthens our resilience and called for a continued freeze on Russian assets.
Zelensky had urged European leaders to use €200 billion of frozen Russian assets, but Belgium, where the bulk of the assets are kept, has demanded safeguards against the risk of possible Russian retaliation that has proved to some other countries to be too much.
The bulk – around €185 billion – is in Euroclear, a clearing house for financial transactions in Brussels that operates under EU authority.
In another development, French President Emmanuel Macron said he believed it would be beneficial for Europe to resume contact with Russian President Vladimir Putin.
“I think it’s in our interest as Europeans and Ukrainians to find the right framework to re-engage in this discussion,” he said, adding that Europeans must find the means to do so in the coming weeks”.
Belgian Prime Minister Bart de Weaver said early on Friday that EU leaders had avoided “chaos and division” with their decision to provide a loan to Ukraine – by borrowing cash rather than using frozen Russian assets, as he said “We’ve remained united”.
With Ukraine only a few months away from running out of cash, Zelensky has stated that without any support by spring, Ukraine will be forced to cut drone production”.
The EU estimates that Ukraine needs an additional €135 billion to survive over the next two years, and the monetary crisis is due to begin in April.
German Chancellor Friedrich Merz, who pushed for the asset plan, said the final decision on the loan “sends a clear signal to Putin”.
Russia has warned EU leaders against using its funds, but Polish Prime Minister Donald Tusk said they should rise to the occasion.
The deal offers Kyiv a much-needed lifeline amid intense diplomatic efforts as US President Donald Trump seeks a quick deal to end Russia’s war.
A White House official said that US and Russian officials were due to meet in Miami next weekend for further talks on the peace plan.
Kremlin envoy Kirill Dmitriev is believed to be speaking with Trump envoys Steve Witkoff and Jared Kushner in Miami.
Meanwhile, Zelensky announced that the Ukrainian and US delegations will hold new talks on Friday and Saturday in the United States.
He added that he wanted Washington to provide more details on the guarantees it could give to protect Ukraine from another invasion.
