EU leaders agreed to provide Ukraine a €90 billion loan to cover looming budget shortfalls after more than a day of talks in Brussels, but they failed to unite behind a plan to tap frozen Russian assets to finance the support.
The deal offers Kyiv a financial lifeline as the government braces for a cash crunch expected to hit by April and as U.S. President Donald Trump urges a quick settlement to end Russia’s war. EU chief Antonio Costa announced the outcome on X, saying, “We have a deal. Decision to provide 90 billion euros of support to Ukraine for 2026-27 approved. We committed, we delivered.”
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European Commission President Ursula von der Leyen said the support will be raised on capital markets, with proceeds channeled to Ukraine over the next two years. The package is designed to stabilize public finances, keep essential services running and signal that Europe remains committed to sustaining Ukraine’s economy during wartime.
Leaders had weighed using roughly €200 billion of Russian central bank assets frozen in the EU to generate a loan for Kyiv, an option backed by several capitals as both pragmatic and symbolic. But the approach stalled after Belgium, which hosts the largest share of the immobilized funds, demanded liability guarantees that other member states refused to shoulder.
German Chancellor Friedrich Merz pressed hard for the asset plan but said the agreed loan still sends a clear message to Russian President Vladimir Putin. The revised package lets the bloc move money more quickly while leaving the debate over the legal and financial risks of seizing Russian state assets unresolved.
The EU estimates Ukraine needs about €135 billion over the next two years to stay afloat, underscoring the scale of the gap even after the new loan. The government in Kyiv faces mounting costs to defend its territory and restore critical infrastructure amid ongoing Russian attacks.
Ukrainian President Volodymyr Zelensky, who addressed leaders at the start of the summit, argued that using Russian assets is the right course. “Russian assets must be used to defend against Russian aggression and rebuild what was destroyed by Russian attacks. It’s moral. It’s fair. It’s legal,” he said, urging a decision by year’s end.
While Kyiv may be disappointed the bloc did not adopt the asset plan, securing a two-year financing bridge provides immediate relief. Zelensky told leaders that placing Ukraine on firmer financial footing could strengthen his government’s leverage in any talks to end the war.
Threaded through the Brussels negotiations were U.S. efforts to forge a pathway to a settlement. Zelensky said Ukrainian and U.S. delegations will meet in the United States on Friday and Saturday, seeking clarity on what security guarantees Washington is prepared to offer to deter any renewed Russian invasion.
“What will the United States of America do if Russia comes again with aggression? What will these security guarantees do? How will they work?” Zelensky asked. Trump, meanwhile, kept pressure on Kyiv, telling reporters he hopes Ukraine “moves quickly” because “every time they take too much time, then Russia changes their mind.”
Russia has not publicly reacted to the new EU package. Putin has reiterated Moscow’s intention to pursue maximalist military aims, even as Ukraine and the United States say they have made progress on future security assurances for Kyiv. Disagreements remain over what territory Ukraine might be expected to cede in any potential deal.
The EU’s decision buys time for Ukraine as the war grinds on, but it leaves unresolved the question of whether — and how — Europe will ultimately use frozen Russian assets to fund the defense and reconstruction of a country under attack.
By Abdiwahab Ahmed
Axadle Times international–Monitoring.
