EU Agrees on €90 Billion Loan to Support Ukraine

EU leaders agreed on a €90 billion interest-free loan to Ukraine to support its military and economic needs for the years 2026 and 2027. EU Council President Antonio Costa announced the decision on social media, stating, "We have a deal.

Decision to provide 90 billion euros of support to Ukraine for 2026-27 approved. We committed, we delivered." The funds will be borrowed by the EU on capital markets and underwritten by the EU's seven-year budget.

French President Emmanuel Macron highlighted the deal as a major advance, describing it as the most realistic and practical way to fund Ukraine during the ongoing conflict. German Chancellor Friedrich Merz confirmed that the financial package has been finalized and emphasized that the zero-interest loan will cover Ukraine's military and budgetary needs.

The agreement includes mechanisms to protect Hungary, Slovakia, and the Czech Republic from financial repercussions. Notably, the leaders were unable to agree on using frozen Russian assets to finance the loan, with Merz stating that these assets will remain blocked until Russia pays war reparations to Ukraine, which are estimated to exceed €600 billion.

Ukrainian President Volodymyr Zelenskyy had requested urgent financial support, as the International Monetary Fund estimates that Ukraine will need €137 billion in 2026 and 2027. Polish Prime Minister Donald Tusk warned that the situation necessitates immediate action, stating it would be a case of sending either money today or blood tomorrow.

Belgium raised concerns about the legality of the loan plan, particularly regarding potential harm to Euroclear, where most of the €210 billion worth of frozen Russian assets are held. Costa asserted that the EU reserves the right to use immobilized assets to repay the loan, despite Russian Central Bank's lawsuit against Euroclear, challenging the provision of funds to Ukraine.