EU Approves €90 Billion Loan for Ukraine While Russian Asset Utilization Plan Stalls

European Union leaders reached an agreement on Friday to extend a loan of 90 billion euros (approximately $105 billion) to Ukraine, aimed at stabilizing the country’s finances amid ongoing conflict. However, they were unable to come to a consensus on a more ambitious initiative to utilize frozen Russian assets as a source of additional aid.

This agreement, achieved after overnight negotiations during a summit in Brussels, represents a vital financial lifeline for Ukraine, especially as U.S. President Trump calls for a swift resolution to Russia’s nearly four-year war against the nation.

European Council President Antonio Costa stated, «The decision made today will equip Ukraine with the essential resources to defend itself and assist its citizens.»

Ukrainian President Volodymyr Zelensky expressed on social media platform X that this agreement «offers substantial support that genuinely enhances our resilience,» emphasizing the importance of keeping Russian assets frozen and securing a financial guarantee for Ukraine in the years ahead.

The Kremlin reacted positively to the announcement, with chief economic negotiator Kirill Dmitriev commenting on Telegram that the EU had not been able to “illegitimately utilize Russian assets to fund Ukraine,” remarking that “for now, the law and common sense have prevailed.”

The loan, which is backed by the EU’s collective budget and designated to cover the next two years, does not meet the proposals to access approximately 200 billion euros in frozen assets of the Russian Central Bank located within the EU.

Progress on that front stalled after Belgium, where the majority of these assets are held, insisted on guarantees regarding the sharing of potential legal and financial responsibilities, a requirement that other member states were hesitant to endorse.

As the summit concluded, Belgian Prime Minister Bart De Wever remarked that “rational thinking has triumphed.”

“This entire situation has been extremely risky and has raised numerous questions. It felt akin to a sinking ship, like the Titanic. The decision is made now, and everyone feels a sense of relief,” he added.

German Chancellor Friedrich Merz, who had strongly advocated for the asset seizure proposal, remarked that the final agreement reached early on Friday still conveys a clear message to Russian President Vladimir Putin.

European officials indicated that Ukraine would not be obligated to repay the loan until Russia acknowledges its responsibility to compensate for war damages. Countries such as Hungary, Slovakia, and the Czech Republic, which were skeptical of the agreement, were granted exemptions to facilitate unanimous approval.

The EU has estimated that Ukraine will require an additional 135 billion euros ($159 billion) over the next two years, with financial pressures anticipated to rise in the spring.