Europe's Financial Support for Ukraine Amid Ongoing Conflict

European leaders agreed early on Friday morning in Brussels to provide Ukraine with a loan of 90 billion euros, or about 105 billion dollars, to support its financial needs over the next two years. This decision comes amid ongoing conflict with Russia and follows negotiations among EU officials who had initially aimed to use frozen Russian state assets as collateral for the loan.

However, the plan to leverage these frozen assets was abandoned due to internal opposition within the European Union, leading to a revised approach that relies on backing from the EU budget. Antonio Costa, president of the European Council, emphasized the urgency of the financial assistance, stating that it would address Ukraine's pressing financial requirements.

The funding is particularly critical as Ukraine is expected to begin running out of money early in 2026, coinciding with ongoing negotiations for potential peace terms with the United States. While the decision marks a significant commitment from European leaders, the choice to forego Russian funds may result in higher costs and complications in scaling the support quickly, although officials celebrated the outcome as a necessary step to ensure cash flow to Kyiv.

Costa also noted that the European Union would keep the option open to eventually utilize the immobilized Russian assets, which have been frozen indefinitely since last week.