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European Union leaders have approved a substantial financial package for Ukraine, agreeing to provide a €90 billion ($106 billion) interest-free loan to support the war-torn country’s military and economic needs over the next two years.
The agreement, announced Friday by EU Council President Antonio Costa, represents a significant commitment from the 27-nation bloc. “We have a deal. Decision to provide 90 billion euros of support to Ukraine for 2026-27 approved. We committed, we delivered,” Costa stated on social media.
The funds will be borrowed by the EU from capital markets and underwritten by the bloc’s seven-year budget, offering Ukraine crucial financial stability as it continues to defend itself against Russian aggression.
French President Emmanuel Macron characterized the agreement as a major breakthrough, describing it as “the most realistic and practical way” to fund Ukraine’s ongoing war efforts. The deal includes protective mechanisms for Hungary, Slovakia, and the Czech Republic, shielding them from potential financial consequences.
German Chancellor Friedrich Merz also welcomed the decision, emphasizing that “these funds are sufficient to cover the military and budgetary needs of Ukraine for the two years to come.” The zero-interest nature of the loan represents a significant concession from the EU, reflecting the urgency of Ukraine’s financial situation.
The agreement follows intensive negotiations, with EU leaders working late into Thursday night to address concerns from Belgium about potential Russian retaliation. Belgium hosts Euroclear, a financial clearing house where approximately €210 billion ($246 billion) worth of Russian assets are currently frozen.
Belgian officials had expressed reservations about the loan plan, citing legal risks and potential harm to Euroclear’s operations. Their concerns were heightened last Friday when Russia’s Central Bank filed a lawsuit against Euroclear to prevent any loan being provided to Ukraine using frozen Russian funds.
Despite these challenges, the EU maintained its position on the potential use of frozen Russian assets. “The union reserves its right to make use of the immobilized assets to repay this loan,” Costa stated, though the immediate agreement does not include direct use of these assets.
Merz provided additional context, noting that the frozen assets will remain blocked until Russia pays war reparations to Ukraine—estimated by Ukrainian President Volodymyr Zelenskyy to exceed €600 billion ($700 billion). “If Russia does not pay reparations we will—in full accordance with international law—make use of Russian immobilized assets for paying back the loan,” Merz explained.
The financial package comes at a critical moment for Ukraine. The International Monetary Fund estimates that Ukraine will need €137 billion ($161 billion) in 2026 and 2027. Kyiv’s government faces imminent bankruptcy and urgently requires funds by early next year to maintain essential services and defense capabilities.
Polish Prime Minister Donald Tusk had underscored the stakes earlier on Thursday with a stark warning: it would be a case of sending “either money today or blood tomorrow” to help Ukraine.
This financial commitment represents one of the EU’s most significant coordinated responses to Russia’s invasion of Ukraine, demonstrating continued European solidarity with Kyiv despite the conflict’s prolonged nature and mounting costs.
The loan agreement also reflects the EU’s evolving approach to using economic leverage against Russia while supporting Ukraine’s sovereignty and resistance efforts. Though questions remain about the ultimate disposition of frozen Russian assets, this financial package ensures Ukraine can maintain its defensive posture while preserving economic stability in the immediate future.
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14 Comments
The EU’s decision to offer Ukraine a €90 billion loan is a testament to the bloc’s commitment to the country’s sovereignty and territorial integrity. This financial lifeline will be crucial in sustaining Ukraine’s defense and rebuilding its economy.
While the details of the loan agreement will require careful consideration, the overall impact of this substantial EU support cannot be overstated. It will be a critical factor in Ukraine’s ability to withstand Russian aggression and chart a course for long-term stability.
The EU’s decision to offer this interest-free loan to Ukraine is an important step in addressing the country’s pressing military and economic needs. It demonstrates the bloc’s commitment to Ukraine’s long-term recovery and security.
This loan will undoubtedly provide Ukraine with much-needed financial resources to sustain its defense efforts and rebuild its economy. A wise investment in regional stability.
Providing Ukraine with a substantial €90 billion loan is a significant show of EU support. This will be crucial in helping the country defend itself and rebuild its economy amidst the ongoing conflict with Russia.
I’m glad to see the EU taking concrete steps to back Ukraine financially. This will be vital for the country’s stability and resilience.
This €90 billion loan from the EU represents a substantial investment in Ukraine’s future. It will be critical in helping the country maintain its military operations and lay the groundwork for long-term economic recovery.
Securing this level of financial support from the EU is a major diplomatic and economic achievement for Ukraine. It will provide a much-needed boost to the country’s war efforts and reconstruction plans.
While the details of the loan agreement will need to be carefully examined, the EU’s willingness to commit €90 billion to Ukraine is a strong signal of its support. This financial assistance could be a game-changer in the country’s fight for survival.
The protective mechanisms included in the deal for certain member states are an important consideration, but the overall impact of this loan on Ukraine’s ability to defend itself and rebuild cannot be overstated.
While the €90 billion loan is a substantial commitment, it highlights the EU’s determination to support Ukraine through this challenging period. The protective mechanisms for certain member states are also a pragmatic consideration.
This loan agreement represents a significant show of solidarity from the EU. It’s critical that Ukraine receives the necessary financial backing to defend its sovereignty and territorial integrity.
The EU’s decision to provide Ukraine with a €90 billion loan is a bold move that demonstrates the bloc’s commitment to the country’s long-term stability and recovery. This financial support will be crucial in the face of ongoing Russian aggression.
Securing this substantial loan from the EU is a major achievement for Ukraine. It will help the country maintain its military operations and rebuild its economy in the aftermath of the conflict.