European Union leaders agreed a €90 billion loan for Ukraine, choosing joint borrowing over frozen Russian assets, as Kyiv faces mounting financial pressure amid the ongoing war.
European Union leaders agreed on Friday to provide Ukraine with a €90 billion loan, opting to borrow against the bloc’s common budget after failing to reach consensus on using frozen Russian assets.
The deal was reached after more than a day of talks at an EU summit in Brussels and is intended to cover Ukraine’s military and economic needs over the next two years, EU officials said.
European Council President Antonio Costa said the agreement demonstrated unity, while Ukrainian President Volodymyr Zelensky welcomed the loan as “significant support” that would strengthen Ukraine’s resilience, adding that Russian assets should remain immobilised.
Zelensky had urged the EU to use around €200 billion in frozen Russian assets, most of which are held in Belgium, but concerns over legal risks and shared liability blocked agreement, diplomats said.
Belgian Prime Minister Bart De Wever said the loan avoided “chaos and division” within the bloc, while German Chancellor Friedrich Merz said the decision sent a “clear signal” to Russian President Vladimir Putin.
Ukraine faces an acute cash shortage, with the EU estimating Kyiv needs €135 billion over the next two years, and Zelensky warning that without new funding by spring, drone production could be cut.
The loan provides a crucial lifeline as diplomatic efforts intensify, with U.S. President Donald Trump pushing for a rapid peace deal and Ukrainian and U.S. delegations set to hold further talks in Washington this weekend.
