European Union leaders have agreed to provide Ukraine with an interest-free loan of €90 billion (£78.8bn), despite a failed plan to raise the funds using frozen Russian assets.
The plan had been to use some of the €210 billion (£184bn) worth of Russian assets that are frozen in Europe, mostly in Belgium.
But despite leaders attempting to reassure Belgium it would be protected from any Russian retaliation, they eventually opted to borrow the money on capital markets.
In a post on social media, EU Council President António Costa said: “We have a deal. [A] decision to provide 90 billion euros ($106 billion) of support to Ukraine for 2026-27 approved. We committed, we delivered.”
Ukrainian President Volodymyr Zelenskyy praised the move, posting on social media that he was “grateful” for the loan.
He continued: “This is significant support that truly strengthens our resilience. It is important that Russian assets remain immobilized and that Ukraine has received a financial security guarantee for the coming years.
“Thank you for the result and for unity. Together, we are defending the future of our continent.”
The loan, which aims to help Ukraine meet military and economic needs for the next two years, comes almost four years since Russia‘s invasion of the country.
Ukraine‘s government is on the verge of bankruptcy, with the International Monetary Fund estimating it will need €137 billion (£119.9bn) in 2026 and 2027.
Belgian Prime Minister Bart De Wever described the scheme to use frozen Russian assets as “not a good idea”.
He said: “When we explained the text again, there were so many questions that I said, I told you so, I told you so. There are a lot of loose ends. And if you start pulling at the loose ends in the strings, the thing collapses.”
Hungary, Slovakia and the Czech Republic opposed the loan, but a deal was reached in which they did not block the package and were promised protection from any financial fallout.
Hungarian Prime Minister Viktor Orbán, an ally of Russian President Vladimir Putin, said he “would not like a European Union in war”.
“To give money means war,” he added.
French President Emmanuel Macron said the deal was a major advance, saying that borrowing on capital markets “was the most realistic and practical way” to fund Ukraine and its war efforts.
German Chancellor Friedrich Merz also hailed the decision.
He said: “These funds are sufficient to cover the military and budgetary needs of Ukraine for the two years to come.”
He said the frozen assets will remain blocked until Russia has paid war reparations to Ukraine.
On Wednesday, Keir Starmer ordered former club owner Roman Abramovich to transfer the £2.5 billion proceeds from the sale of Chelsea FC to Ukraine or face legal action.
Meanwhile, a Kremlin envoy will travel to Florida over the weekend to discuss a US-proposed plan to end the war in Ukraine, according to a US official.
Kirill Dmitriev, the head of Russia’s sovereign wealth fund, will meet with US President Donald Trump’s envoy Steve Witkoff and Trump’s son-in-law Jared Kushner in Miami on Saturday.
It follows Witkoff and Kushner’s meetings with Ukrainian and European officials in Berlin earlier this week, where US security guarantees for Kyiv and territorial concessions were discussed.
Putin warned on Wednesday that Moscow would seek to extend its gains in Ukraine if Kyiv and its Western allies reject the Kremlin’s demands in peace talks.
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