Europe Agrees to $105 Billion Loan to Ukraine Amid Ongoing Conflict

European leaders agreed early on Friday morning to provide Ukraine with a loan of 90 billion euros, approximately 105 billion dollars. This decision was made during a meeting in Brussels, where European heads of state and government gathered to address Ukraine's urgent financial needs amidst ongoing conflict with Russia.

The original plan to back the loan with frozen Russian state assets was abandoned due to internal disagreements, leading to a reliance on the European Union budget for the funding. Antonio Costa, the president of the European Council, emphasized that although the adjusted plan may incur higher costs and be more challenging to scale, it is still a significant step in supporting Ukraine.

The loan is crucial as Ukraine is expected to face financial shortfalls as early as 2026, just as it enters negotiations on potential peace terms with the United States. Costa also noted that the EU would keep the option of utilizing Russian assets in the future, as European nations have taken action to freeze those funds indefinitely.