€90bn loan agreed to fund Ukraine
EU leaders have agreed to raise a €90bn loan to fund Ukraine for the next two years, providing crucial financial support while stopping short of using frozen Russian assets to underwrite a longer-term funding package.
The agreement was reached in Brussels in the early hours following more than a day of negotiations.
Leaders had been weighing two options to ensure Ukraine does not face a funding shortfall from the second quarter of next year: raising a loan backed by unused EU budget funds, or using up to €210bn in immobilised Russian assets.
As talks progressed, focus initially shifted towards using Russian assets.
However, technical efforts to provide legal guarantees to Belgium — where most of the assets are held through Euroclear — ultimately failed.
Belgium had sought assurances it would not face liability should Russia succeed in a legal challenge.
Attention then returned to the joint EU borrowing option, backed by untapped funds from the bloc’s seven-year budget.
Despite requiring unanimous support, Hungary, Slovakia and the Czech Republic agreed not to block the move, provided they were not involved in the joint debt.
EU leaders insisted the Russian assets would remain frozen and said that if Russia does not pay reparations after the war, the assets could be used by Ukraine to repay the EU loan.
The EU estimates Ukraine needs an additional €135bn over the next two years, with funding pressures beginning in April.
“We have a deal. Decision to provide 90 billion euros of support to Ukraine for 2026-27 approved,” EU chief Antonio Costa wrote on X.
“We committed, we delivered,” he added.
German Chancellor Friedrich Merz said the decision “sends a clear signal” to Russian President Vladimir Putin.
The agreement was reached in Brussels in the early hours following more than a day of negotiations. (Photo by MIKHAIL METZEL / POOL / AFP) (Photo by MIKHAIL METZEL/POOL/AFP via Getty Images)
Ukraine’s President Volodymyr Zelensky welcomed the decision, calling it “significant support that truly strengthens our resilience,” while stressing the importance of keeping Russian assets immobilised.
The deal provides Kyiv with a financial lifeline as US-led efforts to end the war continue, amid ongoing uncertainty over security guarantees and territorial issues.
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