PNN – EU leaders have agreed to provide Ukraine with a €90 billion interest-free loan but were unable to reach an agreement on using frozen Russian assets to fund this support.
According to the report of Pakistan News Network, citing Russia Al-Youm, EU leaders finally approved an interest-free loan to Ukraine. During a morning session on Friday, December 18, in Brussels, they agreed on providing this substantial loan but failed to reach a consensus on utilizing frozen Russian assets for financing.
Antonio Costa, President of the European Council, wrote on X: “We have reached an agreement. The decision to provide €90 billion in support to Ukraine for 2026–2027 has been approved. We committed and executed it.” He also stated that EU leaders extended sanctions against Russia for another six months.
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French President Emmanuel Macron described the agreement as a significant step forward and the most realistic and practical way to finance Ukraine. He said EU leaders linked Ukraine’s purchase of weapons through the €90 billion loan to sourcing from European manufacturers, ensuring Ukraine will have the budget needed for military financing from 2026 onward. The EU will continue exploring ways to use frozen Russian assets to support Ukraine financially.
Ursula von der Leyen, President of the European Commission, stated that the EU has the right to use frozen Russian assets to fund the loan to Kyiv. She added that Ukraine is not obligated to repay the EU loan if Russia does not pay reparations. She also noted that, with the approval of a qualified majority of EU member states, it would be possible to unfreeze Russian assets in the EU.
However, Hungary, the Czech Republic, and Slovakia opposed participating in the €90 billion loan to Ukraine.
Belgian Prime Minister Bart De Wever described his country’s opposition as a victory for international law and a prevention of a dangerous precedent. He said that refraining from using Russian assets in the loan increases financial stability and eliminates risks for Euroclear. He added that while the idea of seizing Russian assets was supported by countries with “emotional hostility toward Russia,” ultimately reason prevailed.
Hungarian Prime Minister Viktor Orbán said the EU rejected the idea of seizing Russian assets because EU holdings in Russia are larger. He added that the EU loan to Kyiv will ultimately be repaid by the descendants of those who made the decision, noting that it is clear Ukraine will not repay the loan and that if Russia sues over frozen assets, the EU may have to return twice that amount.
German Chancellor Friedrich Merz stated that the loan is sufficient to meet Ukraine’s military and economic needs over the next two years. He said that frozen Russian assets will remain blocked until Russia pays war reparations to Ukraine, and if Russia refuses, these assets could be used to repay the Ukrainian loan. He emphasized that the loan will be interest-free.
Ukrainian President Volodymyr Zelensky has estimated Ukraine’s war reparations at over $700 billion. The International Monetary Fund estimates Ukraine will need $161 billion over the next two years. Kyiv’s government is on the brink of bankruptcy and urgently requires this funding by early next year. Approximately €210 billion ($246 billion) of Russian assets are currently frozen in Europe.